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Picture Book · Debt and cash flow

The offset account sponge

Story pages

A couple in their thirties on the front steps of a raised Queenslander house with a small dog
Meet Ella and Sam. They have a home loan and some savings sitting in the bank.
Two glass jars connected by a little pipe on a kitchen bench
An offset account is an everyday account linked to your home loan. It's generally available with variable-rate loans.
A big sponge soaking up a puddle of water on a timber deck after rain
Its balance reduces the part of the loan that's charged interest. With a $750,000 loan and $50,000 in offset, interest is charged on $700,000.
Salary coins pouring into a glass jar that stays full as only a few coins trickle out each day
Interest is usually worked out daily, so the more you keep there, and the longer it stays, the more interest you can save.
A woman tapping a card at a grocery checkout
The money is still yours to use. Salary can go in, and bills can come out.
The couple comparing two small piles of coins on a balance scale at the dining table
Offset features can cost more in fees or rates. Check that the interest you'd save is bigger than the extra cost.

The end

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General advice warning. This picture book is general information only. It does not take into account your objectives, financial situation or needs, and it is not personal advice. Rules and thresholds change. Before acting, consider whether it is right for you, read any relevant Product Disclosure Statement and our Financial Services Guide, and seek personal advice. Past performance is not a reliable indicator of future performance.

Information as at 27 October 2026. Sources:

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