Is it better to put your savings into a mortgage offset account or in a high interest savings account?

Question

Does anyone know of any online calculators that allow you to work out how much time/money is saved on a mortgage by using an offset account.

Answer 1

I found a calculator for St George Bank: ww.stgeorge.com.au/calculators under the home loan section. You need MS Excel to use it.

Answer 2

Never heard of a mortgage offset account. It can be better to pay off a mortgage than carry it if you can't itemize on your tax return.

You can set an account up at the bank and have them withdraw 1/4 of your monthly payment every week. This has the effect of paying an extra month's mortgage payment a year, and reduces your interest carrying costs.

If you have excess money, I'd find a good mutual fund to put it into. I would suggest the Vanguard family. They are the low cost leaders and generally perform upper half of all performing funds.

It does no use to chase a hot fund. My experience, that by the time the fund it hot, it is too late to get in.

Yahoo itself has many investment calculators.
http://www.finance.yahoo.com I believe is the web address.

Good Luck

Answer 3

confident - Do it without question.. as quickly as saviings expenditures flow decrease than 5% its lots greater effective to pay off charges or positioned money into factors in case you could and get 5 to ten% apartment earnings. Rule a million is often save and emergency reserve of say 3 months earnings then use any left over to pay off ANY borrowing. in case you have £100k or greater left over an concept purchase a flat or abode from a desperate supplier (no longer a sparkling build) then hire it out and get approximately 10% according to year as apartment earnings - which will restart the abode based economic device and save jobs alongside with perhaps your own.