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An offset account is an everyday bank account that is linked to your home loan.
An offset account is typically considered an asset for the account holder. This is because the offset account holds funds that belong to the account holder, and those funds can be used to offset or reduce the outstanding balance of a liability, such as a mortgage or home loan.
Generally, there is no minimum amount you need to keep in the offset account. However, because offset accounts do not earn interest, and lenders only offset up to the current loan amount, it is not beneficial to keep more funds than your loan amount in your offset account. Each lender is different with their own unique terms and conditions, so it’s important to check with your lender.