An offset account can be used in different ways. Some like to have their pay deposited into the offset account and use it as their everyday account. While others may use it as their savings account

In an offset account, your money is going to work harder because the interest rate you pay on a home loan is usually higher than the interest you earn in a savings account. Another plus is that the interest you save by using an offset account won’t be considered income. Which means it won’t be taxed. Whereas the interest you earn on a savings accounts will generally be considered incomes and therefore will be taxed

Redraw facilities work in a similar way to offset accounts, but there are key differences. Redraw facilities tend to be less flexible, but can still have their advantages.