Is Westpac choice an offset account?

Is Westpac Choice an Offset Account?

An offset account is a type of transaction account linked to a home loan that reduces the interest payable on the loan. Westpac offers offset accounts through its Westpac Choice Account, which can be linked to a home loan to provide these benefits. This article explores the features and benefits of the Westpac Choice offset account, drawing from official sources such as Westpac’s websites in Australia and New Zealand.

Features of the Westpac Choice Offset Account**

The Westpac Choice Account is an everyday transaction account that offers several features:

Key Facts

  1. The Westpac Choice Account is an offset account.
  2. It can be linked to a home loan to help reduce the amount of interest paid on the loan.
  3. By maintaining a balance in the offset account, the interest charged on the home loan is calculated on the reduced loan amount.
  4. The offset account has a monthly account-keeping fee of $5, which can be avoided by depositing at least $2,000 each month or by having the Premier Advantage Package.
  5. The offset account allows 24/7 access to funds, providing flexibility and convenience.
  6. The offset account can be used for personal transactions, separate from the home loan expenses.
  7. The Westpac Choice Account is available in New Zealand as well, where it is called Choices Floating Home Loan with Offset.
  • Offset functionality: The account can be linked to a home loan, allowing the balance in the account to offset the loan balance.
  • Interest reduction: By maintaining a balance in the offset account, the interest charged on the home loan is calculated on the reduced loan amount, leading to potential interest savings.
  • Monthly account-keeping fee: The account has a monthly account-keeping fee of $5, which can be waived by depositing at least $2,000 each month or by having the Premier Advantage Package.
  • 24/7 access to funds: The offset account provides 24/7 access to funds, offering flexibility and convenience.
  • Separate personal transactions: The offset account can be used for personal transactions, keeping them separate from home loan expenses.

Benefits of Using an Offset Account**

Using an offset account can provide several benefits:

  • Interest savings: The offset functionality reduces the loan balance for interest calculation purposes, leading to potential interest savings over the life of the loan.
  • Flexibility and convenience: The 24/7 access to funds and the ability to use the account for personal transactions provide flexibility and convenience in managing finances.
  • Separation of expenses: The offset account allows for the separation of personal transactions from home loan expenses, simplifying financial management.

Availability in New Zealand**

Westpac also offers an offset account in New Zealand through its Choices Floating Home Loan with Offset. This account provides similar features and benefits to the Westpac Choice Account in Australia, including offset functionality, interest reduction, and 24/7 access to funds.

Conclusion**

The Westpac Choice Account is an offset account that can be linked to a home loan to reduce the amount of interest paid on the loan. By maintaining a balance in the offset account, customers can potentially save on interest charges and enjoy the flexibility and convenience of 24/7 access to funds. The offset account is also available in New Zealand through the Choices Floating Home Loan with Offset.

Sources:

FAQs

What is a Westpac Choice Offset Account?

**Answer:** A Westpac Choice Offset Account is an everyday transaction account that can be linked to a home loan to reduce the amount of interest paid on the loan.

How does an offset account work?

**Answer:** By maintaining a balance in the offset account, the interest charged on the home loan is calculated on the reduced loan amount, leading to potential interest savings.

What are the benefits of using an offset account?

**Answer:** Benefits include potential interest savings, flexibility and convenience in managing finances, and the separation of personal transactions from home loan expenses.

Is there a monthly fee for the Westpac Choice Offset Account?

**Answer:** Yes, there is a monthly account-keeping fee of $5, which can be waived by depositing at least $2,000 each month or by having the Premier Advantage Package.

Can I access my funds in the offset account at any time?

**Answer:** Yes, the offset account provides 24/7 access to funds, offering flexibility and convenience.

Can I use the offset account for personal transactions?

**Answer:** Yes, the offset account can be used for personal transactions, keeping them separate from home loan expenses.

Is the Westpac Choice Offset Account available in New Zealand?

**Answer:** Yes, Westpac also offers an offset account in New Zealand through its Choices Floating Home Loan with Offset.

What are the eligibility criteria for the Westpac Choice Offset Account?

**Answer:** To be eligible for the Westpac Choice Offset Account, you must have or be eligible for a Westpac Choice transaction account and a Westpac home loan.

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