Offset accounts attached to LOC

Hi everyone,

I am wondering whether it is possible to establish an offset account against a Line of credit account? The advantages I can think of would be being able to use store cash in the offset account and use it for personal use if required.

Regards Jason.
 
Hiya
Not that I am aware of though someone will correct me im sure.

In general a LOC is is not meant to be comboed with an offset because most lenders dont understand the difference in purpose between these products

tarolf
 
You are either going to have to forego that tiny bit of interest diferential between the LOC and term loan offset, or get rid of the LOC and just set up term loans with offset.
For lending and interest calculation purposes there is no diference between LOC and offset. For tax purposes, a LOC is harder to manage, in that the nature of the loan changes if you draw funds for a diferent purpose to that intended.

In the real world, this decision is usually dependant on the type of set up the bank has. For instance CBA's offset is not transactional, so a LOC for personal use is easier to manage. CBA's LOC is a slightly higher rate.


There, I think I added something!
 
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