AusFinance

995 readers

9 users here now

founded 1 year ago

MODERATORS

Is there any benefit if the bank direclty takes out monthly repayments for my mortgage from my offset account instead of savings account ? (aussie.zone)

submitted 5 months ago by yoz@aussie.zone to c/ausfinance@aussie.zone

21 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[–] hitmyspot@aussie.zone 1 points 5 months ago (1 children)

Usually the interest on savings accounts is about 2% lower than mortgage rates. And youre taxed.

Using made up figures, of you had 10000 dollars on savings you might earn 400 bucks in a year. You'll get faced a hundred and end up with 300. With an offset, you'll pay 600 less in interest and pay no tax on it. So effectively double the return.

So you have lost 300, in my example but never notice.

[–] yoz@aussie.zone 1 points 5 months ago

Understood. Thank you :)