YⓄ乙 @aussie.zone to AusFinance@aussie.zoneEnglish · 3 months agoIs there any benefit if the bank direclty takes out monthly repayments for my mortgage from my offset account instead of savings account ?message-squaremessage-square8fedilinkarrow-up11arrow-down10
arrow-up11arrow-down1message-squareIs there any benefit if the bank direclty takes out monthly repayments for my mortgage from my offset account instead of savings account ?YⓄ乙 @aussie.zone to AusFinance@aussie.zoneEnglish · 3 months agomessage-square8fedilink
minus-squareYⓄ乙 @aussie.zoneOPlinkfedilinkEnglisharrow-up0·3 months agoAh 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.
minus-squarehitmyspot@aussie.zonelinkfedilinkarrow-up0·3 months agoSome 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.
minus-squareYⓄ乙 @aussie.zoneOPlinkfedilinkEnglisharrow-up0·3 months agoHow is it taxfree? Like I am not getting any interest like HISA ?
minus-squarehitmyspot@aussie.zonelinkfedilinkarrow-up0·3 months agoYes. Instead of being taxed on interest you earn, youre avoiding interest you would be charged.
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.