Money in the Offset account???
- Thread starter triton07
- Start date
You'll have to read the terms and conditions of the offset account. In most cases the offset account is a simple savings account. I suspect in most cases you get nothing.
Link it to a high interest savings account like ING. Transfer any surplus there to earn good interest.
Link it to a high interest savings account like ING. Transfer any surplus there to earn good interest.
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As has been said in the above posts, the general clause you'll find with an offset account is that it doesn't "earn" any interest, so there is no benefit having any surplus funds in that account, over and above the attached loan balance.
The general rule of thumb is that you don't exceed your loan balance in the offset account because it's just not efficient use of funds. As has been suggested, consider linking an "internet savings" type account to it, such as the ING Savings Maximiser or BankWest TeleNet Saver accounts.
At the moment I think the TeleNet Saver is the better option in terms of higher interest rates (8.5%) with the same features (no fees or charges, no minimum balance, etc), but they both go through promotional periods where they offer an additional interest rate for new customers or anything above your account balance at a certain date. Have a look at www.ingdirect.com.au and www.bankwest.com.au/Personal/Savings_and_Investment/TeleNet_Saver/ for details.
There are others, but those are the two that have been mentioned (and the two that I use).
Cheers
BR
The general rule of thumb is that you don't exceed your loan balance in the offset account because it's just not efficient use of funds. As has been suggested, consider linking an "internet savings" type account to it, such as the ING Savings Maximiser or BankWest TeleNet Saver accounts.
At the moment I think the TeleNet Saver is the better option in terms of higher interest rates (8.5%) with the same features (no fees or charges, no minimum balance, etc), but they both go through promotional periods where they offer an additional interest rate for new customers or anything above your account balance at a certain date. Have a look at www.ingdirect.com.au and www.bankwest.com.au/Personal/Savings_and_Investment/TeleNet_Saver/ for details.
There are others, but those are the two that have been mentioned (and the two that I use).
Cheers
BR
