An offset account is, in simple terms, a savings account that is linked to your loan account. Any funds in your savings account ‘offset’ the balance of your loan account and reduce the interest payments. If you had a $300,000 loan and $100,000 in your loan account, the interest would be payable on only $200,000. An offset account can enable you to pay off your home sooner and build more equity.
An all-in-one account is an offset account linked to a credit card. By using a credit card for everyday purchases within the interest free period (generally up to 55 days), you can keep funds in your offset account and minimise your loan amount, and interest payable, as much as possible.
