Are there tax implications with an offset account?
Offset accounts may have a tax benefit, but that depends on your situation. Money in your offsets won’t earn savings interest, which is taxable. Instead, it reduces your loan interest, which is tax-free because you are saving money rather than earning it. Imagine it as tax-free money that goes straight to paying off the principal of your loan. If your loan interest is deductible, having offsets may reduce your deductible expenses. So, depending on your specific circumstances, you may want to seek professional advice on whether this is right for you.