Offset loan (finance)
An offset loan is like having a big pile of money that you can borrow from whenever you need to buy something. But instead of just keeping the pile of money separate from your regular savings account, the bank puts them together in one account.
The cool thing about this is that any money you have in your savings account can be used to "offset" the amount of money you owe on your loan. For example, let's say you have a loan for $10,000 and you also have $5,000 in your offset account. Instead of owing $10,000, you only owe $5,000 because the $5,000 in your offset account is subtracted from the amount you owe on the loan.
This can be really helpful because instead of earning interest on your savings account and paying interest on your loan separately, you only pay interest on the difference between what you owe and what's in your offset account. It's like a money-saving juggling act!
The cool thing about this is that any money you have in your savings account can be used to "offset" the amount of money you owe on your loan. For example, let's say you have a loan for $10,000 and you also have $5,000 in your offset account. Instead of owing $10,000, you only owe $5,000 because the $5,000 in your offset account is subtracted from the amount you owe on the loan.
This can be really helpful because instead of earning interest on your savings account and paying interest on your loan separately, you only pay interest on the difference between what you owe and what's in your offset account. It's like a money-saving juggling act!
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