Offset acct

Looking for thoughts and opinions of the many great minds on this site.
Currently refinancing PPOR and investment properties out of Liberty and Westpac into CBA

One of the multiple reasons for the move was CBA have the option in having multiple offsets.

Currently I run an ING Everyday Debit for my weekly discretionary expenses (so I maximise trapping surpass cash flow)

Should i.move my discretionary debit card to CBA as I will have the option in offsetting this debt against my PPOR debt but ING have the great option of no ATM fees at any machine and no international fees

Thoughts would be appreciated I should be considering

Thought is if I am not purchasing more assets I might as well be offsetting the debt on my current assets(as benefits of Fees won't outweigh the offsetting

Cheers

 

depends on how much spare cash you have lying around. Even $1000 should save you about $40 per year.

 

Probably best to simply move it all over to Cba and take advantage of the multiple offsets.

Cheers

Jamie

 

Awesome thanks Terry. Current setup probably makes sense to move it to CBA. need to also ascertain what we do with monies we have been transferring monthly over to a kids dollarmite acct. Kids are 4 and 6 and we have contributed combined approx 15k- do I move it to one of the offsets or as we have a longer term horizon for them-10 YRS plus- we move some monies into equities

 

Totally agree Jamie. One of the reasons some of my property loans.moved from Liberty and WBC to CBA was the multiple offsets

 

You could use the kids money to get a much higher return in the offset saving you around 4% interest on the loan. Tax savings too potentially. Keep a spreadsheet to keep track

 

Makes total sense, thanks Terry

 

Hi,
Just an out of interest question.
As per this thread some banks allows multiple offsets account for 1 home loan.

Is there such thing as 2 home loans linking to ONLY 1 offset account? And that 1 offset account offsetting interest for the 2 home loans linked to it. Assuming the offset account amount is larger than 1 home loan.

Thanks

 

I have never seen such an offset and don't think it would be on offer as how would it be determines how much interest is saved on each loan?

 

Do the maths. If rates are the same and the only difference is offset, then an offset makes sense BUT if you are paying to have an offset through needing a yearly fee or worse yet higher interest on a large loan you can actually find yourself in a worse position.