Offset Account

An offset account is a bank account, usually savings, that is linked to a mortgage loan. It is used to reduce interest on the mortgage by offsetting the interest you earn on the account against the interest incurred on the loan. The offset is applied daily at the prevailing rate of the loan. This does not affect the other functions of your account, so you can still withdraw, deposit, check your balance, and make EFTPOs payments with your card. In most cases, you can also have your salary or other receivables deposited directly into your offset account.