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Does it matter which account i leave money in?

Posted by Mark9 Mark9
Message 1 of 9 3,563 Views

Hello all, just new to the forum.

I was wondering if it makes any difference which account I leave my money in to gain the interest benefits from my home loan.

I have an offset account linked to my home loan account, but I would rather my savings were to be in my home loan account and not the offset account.

My question is, will I still benefit the same from it been in the home loan account and is there anything which I need to watch out for with it sitting there?

The reason behind this is that I don't want my savings to be viable in my offset account seen as it might make a certain someone think we have money to burn :-)

Hope the above makes sense and thanks for the help.

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Re: Does it matter which account i leave money in?

Posted by poseidon poseidon
Message 2 of 9 3,562 Views
We're all new here, that's the cool part Smiley Happy

If your offset account is 100% offset against your home loan then whether the money is in your home loan or the offset account it'll have the same effect on the interest on your loan.

So it sounds like you might want to put it on the home loan for that certain someone haha
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Re: Does it matter which account i leave money in?

Posted by Mark9 Mark9
Message 3 of 9 3,550 Views

Thanks Poseidon

 

I will be keeping it in the home loan account, will be in a much safer place there :-)

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Re: Does it matter which account i leave money in?

Posted by LyndsC LyndsC
Message 4 of 9 3,548 Views

Great question @Mark9, and thanks for your response @poseidon!

You're certainly right in saying that if your offset account is 100% offsetting your loan then keeping funds in either account would have the same effect on your interest.

However it may be best to check the features of your particular home loan account to ensure if has an online redraw facility available, so that if you need to access the funds you are keeping in the loan, you can do so.

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Re: Does it matter which account i leave money in?

Posted by Mark9 Mark9
Message 5 of 9 3,546 Views

Hi Lyndsc, 

 

What is the easiest way to determine if my home loan and offset are the correct types for my needs? Currently, my home loan shows that I can withdraw the full amount which I have overpaid plus the savings I have put in there as well but I am not sure if my offset account is 100%.

 

I didn't pay that much attention when i was setting everything up was just excited to be building the house in the first place.

 

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Re: Does it matter which account i leave money in?

Posted by LyndsC LyndsC
Message 6 of 9 3,543 Views

I understand @Mark9, buying or building a new home is a really exciting time, and sometimes the amount of information you get can be slightly overwhelming! A lot of home loans do allow a 100% offset account. If you can let me know which home loan you have (you can see the name of the account when you log into online banking), I'd be happy to look into this for you adn let you know what that product allows Smiley Happy

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Re: Does it matter which account i leave money in?

Posted by Mark9 Mark9
Message 7 of 9 3,539 Views

Hi LyndsC

 

I have just checked and the account name for my home loan is - Premium select home loan

 

Thanks for looking into this for me Smiley Happy

 

 

 

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Re: Does it matter which account i leave money in?

Posted by Mark9 Mark9
Message 8 of 9 3,538 Views

And my offset is - Lite Direct

 

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