I am a layman in finance. I have query which has not got answered for a long time. Lots of people use offset accounts to reduce their borrowing to maintain the flexibility. I assume the offset account is the same as Save/Deposit account. When a bank defaults( it happened before), the cash in offsetting account simply goes with it and the loan book will remain. So the property purchaser has to repay the debt from scratch again ? Is it right ? In this aspect, loan account with redrawing ability is better than offsetting account ?