most banks and non bank insto's are now offering offset accounts..... what a dream opportunity they offer
you are effectively getting a matching interest rate on your deposit, at the same rate as the higher home loan rates...
so if your home loan is still at 6.5- 7 %, you are in effect earning that rate on your deposit
instead of the low 3% the banks are currently giving for deposits
whoo hoo
it is a great situation....the offset amount on a 100k deposit saves you on average either 6000 - 7000 off your home loan interest bill....or whatever home loan rate you are on
it is equivalent to earning 6 - 7% on your deposit
of course your tax deduction is lower, but you are also not paying tax on the interest on the lousy 3% deposit rates either bingo...what a way to go....
see how easy is it to beat the odds, or rise above the pack, when you become serious about investing...
