An offset account can help you reduce the interest you pay on your home loan. It works like any normal transaction account, except it’s linked to your home loan.
Any money you have in your offset transaction account is ‘offset’ against the balance in your home loan account, reducing the amount on which interest is calculated on that day. Interest on your home loan balance is calculated daily, so the more money you can keep in your offset account each day, the more your home loan interest will be reduced.
You can choose to open a single or joint offset account from the Bankwest App, if you have an eligible Complete Variable Home Loan or Complete Fixed Home Loan. Otherwise, get in touch with us to open your new account.
This might sound obvious, but the more money you have in your offset account, the more your home loan interest will be reduced.
This way, it will be offset against your home loan on the day you get paid.
If you choose to use a credit card for your everyday purchases, it could help you keep more money in your offset account during the month – which means being charged less interest on your home loan.
Remember that it’s important to pay off your whole credit card statement balance (excluding any balance transfer amount) by the due date each month to avoid purchase interest and any late payment fees. After all, you don’t want to cancel out any potential home loan interest savings with credit card fees. If you have a credit card with Bankwest, you can also use Bankwest Easy Alerts in the Bankwest App to receive an alert before your credit card payment is due.
Of course, consider what’s right for your financial situation. If using a debit card instead for your everyday spending suits you better, our offset accounts come with debit card facilities.
Did you know that you can open up to nine offset accounts with your eligible Bankwest home loan? You could use them as ‘buckets’ for the things you regularly spend money on and save for – it’s one way to manage your money, while also saving on home loan interest. Plus, you can get a Platinum Debit Mastercard® for every offset account, so you can easily access your money.
Keep in mind that a monthly fee applies for each offset account held by customers who don’t have an eligible Complete Home Loan Package. Learn more about bucketing.
Remember, it's always a good idea to get independent financial advice when it comes to managing your finances.
Offset account is not available with our Equaliser home loan or equity products and must be held in the same name as the loan account. Maximum 40% offset is available with our Complete Fixed and Fixed Rate home loans. Other exclusions apply. Account holders must be 18 years or older. Other fees and charges, including Overseas ATM Access and Foreign Transaction Fees, may apply. Credit interest is not payable on this account.
Lending and eligibility criteria, and fees and charges, apply for our home loans. The Complete Home Loan Package consists of an eligible home loan, one optional eligible credit card per customer and up to nine optional Offset Transaction Accounts per loan.
Consider the applicable product PDS available from Bankwest before deciding whether the product is right for you. Fees and charges may apply and subject to change.
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The information contained in this article is of a general nature and is not intended to be nor should it be considered as professional advice. You should not act on the basis of anything contained in this article without first obtaining specific professional advice. Also to the extent permitted by law, Bankwest, a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL / Australian credit licence 234945, its related bodies corporate, employees and contractors accept no liability or responsibility to any persons for any loss which may be incurred or suffered as a result of acting on or refraining from acting as a result of anything contained in this article.