Switch Finance - Loan Offset vs Multiple Offset

We're talking offset accounts today, and I think most people have a fair idea what an offset account is, but I'll recap. So, an offset account is just a normal savings account that is connected to your home loan. So whatever money is sitting in that savings account, it's offsetting or saving interest on your home loan. Very quick example, you might have a $200,000 home loan and $50,000 of savings in your offset account. It just means the bank won't charge you interest on 50,000 of that loan, so you'll only pay interest on $150,000. So that means less interest, more of your repayment goes to paying your principal down so you save money on interest, and you pay your loan off quicker. So, of late there's more and more lenders coming out and allowing you to have multiple offset accounts against one loan. So, what does that mean? It means you can have multiple savings accounts and, and you know, give them different nicknames because a lot of people like to have their money divided up into separate buckets. It makes their budgeting a bit easier. And I I do get that. So, you might have a holiday account, you might have an education savings account for your kids, your wife might have her own account, and husband might have his own account. They like to keep their own little spendings account. So, you can have them all set up, give them nicknames so you know what they are. And all of that money is being put to good use. You're saving interest on your home loan. It even steps up again for business owners. Number of our self-employed customers will set up an offset account and call it the GST account where they put the excess money that they need to pay every quarter on their bass into that account and when the bass is due, they put it back into their business account and pay the bass. What that's done in that few months of that money sitting there is save them interest on their home loan and help them pay it down. Obviously seek advice from your accountant around that if they're happy for you to do that, but there is a lot of advantage to having multiple offset accounts, especially if you're a good saver. If you want to find out more, reach out to Switch Finance and we'll give you some further information. MORE: Call 07 5532 0030 https://switchfinance.net.au CONNECT: http://linktr.ee/switchfinance