What’s your savings account and why do you use one if you have an offset?
If you have funds going into an account other than your offset it makes sense for them to be paying your mortgage so the offset stays as high as possible. Even better, get everything paid into your offset and then pay mortgage and everything else from there.
Some banks don’t allow yountondo everything from an offset so might not want to close the others yet. But the Odra is to keep as much as possible in there. It basically free tax efficient money by doing so.
What’s your savings account and why do you use one if you have an offset?
If you have funds going into an account other than your offset it makes sense for them to be paying your mortgage so the offset stays as high as possible. Even better, get everything paid into your offset and then pay mortgage and everything else from there.
Ah ok. I am first home buyer so had to idea we can do this. I’ll close all my accounts today and just use offset for everything.
Some banks don’t allow yountondo everything from an offset so might not want to close the others yet. But the Odra is to keep as much as possible in there. It basically free tax efficient money by doing so.
How is it taxfree? Like I am not getting any interest like HISA ?
Yes. Instead of being taxed on interest you earn, youre avoiding interest you would be charged.