This guide explains the difference between offset accounts and redraw facilities, helping you decide which is best for your situation.
It covers:
How both features reduce interest – by using extra funds to lower your loan balance
Redraw facilities – how extra repayments can be accessed, key features, and limitations
Offset accounts – how they work as everyday bank accounts linked to your loan, with 100% offset being most effective
Flexibility vs simplicity – offset offers more control and easy access to funds, redraw is simpler and often fee-free
Costs and fees – offset accounts usually come with monthly or annual fees, while redraw is often free
Tax considerations – why offset accounts may be preferable if your home later becomes an investment property
Which is best for you – quick guidance depending on whether you want lower interest, more flexibility, or a set-and-forget approach
Credit Guide