Judo Bank Raises Savings Interest Rates

The bank has increased its variable interest rates on savings products by 0.25 percent following a central bank rate hike.

Updated on Oct. 20, 2026 in Saving

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Judo Bank has lifted variable interest rates on its savings products by 0.25 percent per annum for new and existing customers. The adjustment follows the recent decision by the Reserve Bank of Australia to increase the national cash rate target to 4.60 percent.

Why it matters

The increase in deposit rates reflects the broader banking sector's response to the Reserve Bank of Australia's tightening of monetary policy. Higher rates aim to align retail savings returns with the current national cash rate target.

Judo Bank now offers a total variable rate of 5.60 percent per annum on balances up to 250,000 dollars, comprising a 0.05 percent base rate and a 5.55 percent bonus rate. To qualify for the bonus, customers must deposit at least 300 dollars monthly.

The players

Judo Bank

Judo Bank is an Australian specialist bank headquartered in Melbourne that focuses on providing financial services to small and medium-sized enterprises and individual savers.

Reserve Bank of Australia

The Reserve Bank of Australia is the nation's central bank and acts as the authority responsible for conducting monetary policy and maintaining the financial stability of the country.

The details

This interest rate adjustment became active for all eligible personal savings accounts as of 7 October 2026. Interest is calculated on a daily basis and paid monthly, with no monthly account keeping fees applied to these savings products.

29 September 2026: Reserve Bank of Australia raised the cash rate target to 4.60 percent.
7 October 2026: Judo Bank interest rate increases became effective for all customers.

Market Dynamics

This move follows the Australian Government's Financial Claims Scheme, which protects eligible deposits up to 250,000 dollars per account holder. The rate adjustment aligns retail banking products with the broader monetary policy cycle managed by the central bank.

Savers can now earn a higher total variable rate of 5.60 percent, provided they meet the monthly deposit requirement of 300 dollars. This change directly increases the potential interest income on balances up to 250,000 dollars for eligible account holders.

The takeaway

Savers should ensure they maintain a minimum monthly deposit of 300 dollars to secure the bonus interest rate. Monitoring central bank rate targets is essential for individuals looking to optimise their return on liquid savings.