An offset account is a separate account holding your savings, linked to your home loan. 

The funds sitting in your account are then offset daily against your loan balance, reducing the interest charge according to the amount of savings in your offset account. 

While some offset accounts will offset the full balance, others will only offer a partial offset. 

It's also important to note, that when holding a fixed loan or part fixed part variable, it is rare that you can offset the fixed portion. There are options or specials that can offset a fixed loan and we advertise them accordingly.