Judo Bank has reached a significant milestone, with $10 billion in total deposits. For a bank that received its full banking licence in 2019, this achievement reflects a deep level of trust from thousands of Australians who are choosing safety, certainty, and simplicity when it comes to managing their money.
As Judo Bank’s Patrick Nolan, General Manager, Product said, “Reaching $10 billion in deposits marks an important moment for Judo Bank. It reflects the trust our customers have placed in us to look after their savings. That trust means a great deal, and we’re committed to earning it every day through transparency, dedication, and innovation.”
At a time when many Australians are reassessing how and where they save, we’ve taken a closer look at why term deposits continue to resonate, and what this milestone might say about what Australians value when it comes to their savings.
Term deposits remain a secure and trusted choice
While nearly all Australians have a transaction account (95%) and most hold a savings account (79%), data from the Australian Competition and Consumer Commission’s 2023 Retail Deposits Research: Final Summary Report shows that around one in five Australians also have a term deposit.
This indicates that many Australians may be actively looking for more certainty in how they manage their savings. In fact, almost a quarter of term deposit holders report substantial balances of $100,000 or more, and nearly three in ten hold between $20,000 and $100,000.
Most holders have just one term deposit, which might suggest they’re being used with intent for goals like protecting capital, supporting a financial plan, or locking in secure returns over a set period.
It appears Australians may be using term deposits as a stable, safe and structured way to manage savings, especially in an uncertain economic environment.
Why term deposits are a safe savings product
Term deposits give you the ability to lock away money for a set period, at a fixed interest rate. You know what return you’ll receive at the end of the term (provided you hold until maturity), and your money is protected from interest rate decreases during that time.
So, for those who don’t need immediate access to their funds, a term deposit offers a more predictable way to manage savings.
And if your funds are held with an Authorised Deposit-taking Institution (ADI) – like Judo Bank – they’re also eligible for the Australian Government’s Financial Claims Scheme, which is designed to protect deposits up to $250,000 per account holder, per ADI.
It’s this combination of fixed rates, clear terms, and regulated safeguards that continues to draw Australians to term deposits.
Why Australians may be choosing term deposits
1. Fixed interest rate. The interest rate is agreed upfront, so savers have a clear view of their potential return, provided the deposit is held for the full term.
2. Potentially higher rates. Term deposits may offer more attractive interest rates than other savings products, especially if you’re committing to a longer term.
3. Government protection. Eligible deposits with ADIs are backed by the Financial Claims Scheme, which may protect up to $250,000 per customer, per institution.
4. No ongoing fees. Term deposits typically don’t come with any account-keeping or service fees. However, you may incur early withdrawal costs if you break your term deposit before it matures.
5. No bonus rate criteria. A big point of difference between term deposits and savings accounts is that savings accounts often require you to meet certain conditions (like minimum deposits or no withdrawals) to get the highest rates. However, term deposits offer a fixed interest rate upfront with no bonus rate criteria to earn that interest, although some term deposits do offer additional bonus interest if you rollover a certain amount at maturity.
6. May help curb spending. Because funds are locked away for the term, term deposits may help reduce the temptation to dip into savings unexpectedly.
→ Read more: The benefits of term deposits
Is a term deposit the right choice for everyone?
Term deposits aren’t a one-size-fits-all solution, but they can make sense depending on what you’re looking for.
If you’re focused on protecting your savings and don’t need to dip into them right away, a term deposit might offer the kind of structure and stability that’s hard to find elsewhere.
Some people use them to balance out more growth-focused investments. Others see them as a way to lock in a return and take the stress out of short- to medium-term planning.
It’s important to consider your individual goals, cash flow needs and financial situation before deciding if a term deposit is the right fit for you.
Is Judo Bank safe for term deposits?
Judo Bank is an ADI, which means it’s regulated by the Australian Prudential Regulation Authority, among others. That puts it under the same rules and standards as other licensed banks in Australia, covering everything from capital requirements to how deposits are managed.
→ Related read: Is my money safe in a term deposit?
Like all ADIs, eligible deposits with Judo Bank are also covered by the Australian Government’s Financial Claims Scheme.
For Australians who are prioritising safety and looking for a simple, structured way to save, these protections can offer added peace of mind.
If you’re looking for more information about Judo’s personal term deposits and current rates, you can explore our term deposits here.
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