Finance Hub
Offset Accounts
An offset account is a simple tool that can save interest while keeping your money accessible. We introduce you to independent, licensed brokers who explain how to use one well.
How an offset works
An offset account is a transaction or savings account linked to your loan. The balance in that account is offset against your loan balance when interest is calculated, so money sitting there reduces the interest you pay without being locked away.
Because the funds remain accessible, an offset can serve as an emergency buffer and an interest-saving tool at the same time.
Offset versus redraw
An offset account is different from redraw. Offset funds are your own savings held in a separate account, while redraw lets you pull back extra repayments you have already made. The distinction can matter for flexibility and, in some cases, tax — something a licensed professional can explain.
How we help
We connect you with independent, licensed brokers who can find loans with genuine offset features and explain any fees involved. We do not provide credit advice ourselves.
Related reading
- Finance and lending introductions — brokers who explain whether an offset suits your loan.
- Mortgage and finance mistakes — the loan feature misunderstandings that cost money.
Frequently asked questions
Does an offset account cost anything?
Some loans with offset accounts carry higher fees or rates, so it pays to compare the total cost. A broker can help you weigh this up.
Can I have more than one offset account?
Some lenders allow multiple offset accounts against one loan. Availability varies, so check with your broker.