Understanding Multi-Offset Accounts
Many people are now setting aside money into separate accounts, or "buckets," for different things in their budget. For example, a small family might have one account for groceries and transport, another for bills paid by direct debit, one for children's expenses, and a rainy day fund for future holidays.
This method makes it easier to budget for regular expenses and helps track spending, making money management simpler for many people.
If you have savings in the bank, you can also benefit by choosing a loan with an offset account. This means any money you have will lower the loan amount, reducing your interest payments.
The challenge is that most loans with an offset option only allow offsetting for one account. So, if you allocate your money into different accounts for easier management, you'll need to choose one account—usually the biggest—as your offset.
At BFD Finance, we have helped clients set up multiple variable loans for multiple offset accounts. However, some lenders offer multi-offset accounts on a single loan. Here, the balances across several accounts are combined and offset against the loan.
A real multi-offset setup isn't available with all major lenders and if you're interested in this option, you can achieve it with careful financial planning. Examples of current providers are Bankwest, St George, Bendigo and Macquarie Bank
Want to know more? Contact the team at BFD Finance today and chat with one of our experts to find the best solution for your needs.