Offset accounts can help you save thousands on interest and pay your home loan faster without having to work extra hard for it. Sounds good, right? Let’s get into it.
What is an offset account and how it works?
Offset accounts help you save on the interest you pay on your Home Loan, and with us, you can have up to 8 offset accounts on our Home Loan products* to help you own your home sooner. Available at no cost on both Standard and Premium Fixed and Variable Home loans.
Our offset functionality is attached to our Easy Access account that is linked to your home loan, with the full balances of your account offsetting the amount you owe on your home Loan. For example, if you owe $350,000 on your home loan, and hold $10,000 in your offset account for the full month, the interest calculated for you to pay us that month will be on $340,000 instead, saving you money.
At the same time, the money is freely available for you to use, just like any other everyday account. Interest is calculated daily and charged at the end of the month, so even if you hold extra money for a few days instead of the whole month, it will still make a difference.
How can you maximise the benefits of an offset account?
Best practice is to deposit your income into the account, and only take out what you need to live on when you need it.
Every dollar counts in an offset account, the more money you can put into it, the better. Generally, it’s recommended to keep at least $10,000 after expenses for your offset account to work well for you and that is why it is common for people to combine their previous separated savings and transaction account into an offset account.
However, we understand that merging savings and transaction accounts into one big bucket can be overwhelming for some people. That is why at SCCU we offer our customers the option to have up to 8 Easy Access accounts with offset functionality linked to the same home loan. Those who enjoy bucketing or having a separate account for specific financial goals, can enjoy peace of mind knowing their money still working for them while having their budget in order.
Is my home loan eligible for an offset account?
The best way to confirm all benefits of your home loan is to read the product page details and all related documents. If you have any questions, please reach out to our Premium Bankers, or contact us on 1300 360 744 and we will be happy to help.
Southern Cross Credit Union Ltd 82 087 650 682 AFSL 241000. Any advice is general advice only and does not take into account your objectives, financial position or needs (your ‘circumstances’).