Offset accounts may cause an upset

Offset accounts can save you big bucks. Source: National Features

MORTGAGE holders using offset accounts are risking paying fees and using partially effective accounts without even knowing.

Research by comparison website RateCity found 75 per cent of variable home loan providers offer offset accounts but about one in 10 charge an account-keeping fee.

Some accounts are not 100 per cent effective they are partially effective with interest costs charged on the offset account balance.

RateCity spokeswoman Michelle Hutchison says it is important account holders fully understand what sort of offset account they are signing up for.

"They need to find out if they are 100 per cent effective or partially effective because it will make a big difference," she says. "They also need to know if the offset account charges a monthly fee because the fee might outweigh the interest that they will be offsetting."

Hutchison says fees and partial-offset accounts can hit first-home buyers the hardest because they often have small amounts of cash sitting in these types of accounts after making their first property purchase.

Offset accounts are a tax-effective way to save on interest charges because you don't pay tax on the money you stash away, as opposed to putting money into savings accounts and investments.

RateCity found that of the offset accounts that come at a cost, the average account-keeping fee is $7.81 a month.

For a homeowner with a $300,000 mortgage and a 6 per cent interest rate, a $7.81 monthly fee could result in the borrower missing out on more than $3000 over 30 years.

Suncorp Bank executive manager Craig Fenwick says there is a few ways to get the "best bang for your buck" from offset accounts.

"First you must maximise the amount of money you have in that account ... for example your salary is going into that account," he says. "It comes back down to your individual circumstances about how big your loan is, what your interest rate is paying on that loan, how much you might pay for the facility and also how much money you have offsetting against that home loan."

Fenwick says savers with cash deposits may find it more beneficial to have their money in an offset account and available "at-call" while also reducing the interest on their home loan, rather than locking it away in a term deposit.

HSBC Bank Australia's head of mortgages, Alice Del Vecchio, says every cent counts in an offset account. "Every dollar makes a difference."

View the original article here

Offset accounts may cause an upset

Offset accounts can save you big bucks. Source: National Features

MORTGAGE holders using offset accounts are risking paying fees and using partially effective accounts without even knowing.

Research by comparison website RateCity found 75 per cent of variable home loan providers offer offset accounts but about one in 10 charge an account-keeping fee.

Some accounts are not 100 per cent effective they are partially effective with interest costs charged on the offset account balance.

RateCity spokeswoman Michelle Hutchison says it is important account holders fully understand what sort of offset account they are signing up for.

"They need to find out if they are 100 per cent effective or partially effective because it will make a big difference," she says. "They also need to know if the offset account charges a monthly fee because the fee might outweigh the interest that they will be offsetting."

Hutchison says fees and partial-offset accounts can hit first-home buyers the hardest because they often have small amounts of cash sitting in these types of accounts after making their first property purchase.

Offset accounts are a tax-effective way to save on interest charges because you don't pay tax on the money you stash away, as opposed to putting money into savings accounts and investments.

RateCity found that of the offset accounts that come at a cost, the average account-keeping fee is $7.81 a month.

For a homeowner with a $300,000 mortgage and a 6 per cent interest rate, a $7.81 monthly fee could result in the borrower missing out on more than $3000 over 30 years.

Suncorp Bank executive manager Craig Fenwick says there is a few ways to get the "best bang for your buck" from offset accounts.

"First you must maximise the amount of money you have in that account ... for example your salary is going into that account," he says. "It comes back down to your individual circumstances about how big your loan is, what your interest rate is paying on that loan, how much you might pay for the facility and also how much money you have offsetting against that home loan."

Fenwick says savers with cash deposits may find it more beneficial to have their money in an offset account and available "at-call" while also reducing the interest on their home loan, rather than locking it away in a term deposit.

HSBC Bank Australia's head of mortgages, Alice Del Vecchio, says every cent counts in an offset account. "Every dollar makes a difference."

View the original article here

Offset accounts may cause an upset

Offset accounts can save you big bucks. Source: National Features

MORTGAGE holders using offset accounts are risking paying fees and using partially effective accounts without even knowing.

Research by comparison website RateCity found 75 per cent of variable home loan providers offer offset accounts but about one in 10 charge an account-keeping fee.

Some accounts are not 100 per cent effective they are partially effective with interest costs charged on the offset account balance.

RateCity spokeswoman Michelle Hutchison says it is important account holders fully understand what sort of offset account they are signing up for.

"They need to find out if they are 100 per cent effective or partially effective because it will make a big difference," she says. "They also need to know if the offset account charges a monthly fee because the fee might outweigh the interest that they will be offsetting."

Hutchison says fees and partial-offset accounts can hit first-home buyers the hardest because they often have small amounts of cash sitting in these types of accounts after making their first property purchase.

Offset accounts are a tax-effective way to save on interest charges because you don't pay tax on the money you stash away, as opposed to putting money into savings accounts and investments.

RateCity found that of the offset accounts that come at a cost, the average account-keeping fee is $7.81 a month.

For a homeowner with a $300,000 mortgage and a 6 per cent interest rate, a $7.81 monthly fee could result in the borrower missing out on more than $3000 over 30 years.

Suncorp Bank executive manager Craig Fenwick says there is a few ways to get the "best bang for your buck" from offset accounts.

"First you must maximise the amount of money you have in that account ... for example your salary is going into that account," he says. "It comes back down to your individual circumstances about how big your loan is, what your interest rate is paying on that loan, how much you might pay for the facility and also how much money you have offsetting against that home loan."

Fenwick says savers with cash deposits may find it more beneficial to have their money in an offset account and available "at-call" while also reducing the interest on their home loan, rather than locking it away in a term deposit.

HSBC Bank Australia's head of mortgages, Alice Del Vecchio, says every cent counts in an offset account. "Every dollar makes a difference."

View the original article here

Offset accounts may cause an upset

Offset accounts can save you big bucks. Source: National Features

MORTGAGE holders using offset accounts are risking paying fees and using partially effective accounts without even knowing.

Research by comparison website RateCity found 75 per cent of variable home loan providers offer offset accounts but about one in 10 charge an account-keeping fee.

Some accounts are not 100 per cent effective they are partially effective with interest costs charged on the offset account balance.

RateCity spokeswoman Michelle Hutchison says it is important account holders fully understand what sort of offset account they are signing up for.

"They need to find out if they are 100 per cent effective or partially effective because it will make a big difference," she says. "They also need to know if the offset account charges a monthly fee because the fee might outweigh the interest that they will be offsetting."

Hutchison says fees and partial-offset accounts can hit first-home buyers the hardest because they often have small amounts of cash sitting in these types of accounts after making their first property purchase.

Offset accounts are a tax-effective way to save on interest charges because you don't pay tax on the money you stash away, as opposed to putting money into savings accounts and investments.

RateCity found that of the offset accounts that come at a cost, the average account-keeping fee is $7.81 a month.

For a homeowner with a $300,000 mortgage and a 6 per cent interest rate, a $7.81 monthly fee could result in the borrower missing out on more than $3000 over 30 years.

Suncorp Bank executive manager Craig Fenwick says there is a few ways to get the "best bang for your buck" from offset accounts.

"First you must maximise the amount of money you have in that account ... for example your salary is going into that account," he says. "It comes back down to your individual circumstances about how big your loan is, what your interest rate is paying on that loan, how much you might pay for the facility and also how much money you have offsetting against that home loan."

Fenwick says savers with cash deposits may find it more beneficial to have their money in an offset account and available "at-call" while also reducing the interest on their home loan, rather than locking it away in a term deposit.

HSBC Bank Australia's head of mortgages, Alice Del Vecchio, says every cent counts in an offset account. "Every dollar makes a difference."

View the original article here

Offset accounts may cause an upset

Offset accounts can save you big bucks. Source: National Features

MORTGAGE holders using offset accounts are risking paying fees and using partially effective accounts without even knowing.

Research by comparison website RateCity found 75 per cent of variable home loan providers offer offset accounts but about one in 10 charge an account-keeping fee.

Some accounts are not 100 per cent effective they are partially effective with interest costs charged on the offset account balance.

RateCity spokeswoman Michelle Hutchison says it is important account holders fully understand what sort of offset account they are signing up for.

"They need to find out if they are 100 per cent effective or partially effective because it will make a big difference," she says. "They also need to know if the offset account charges a monthly fee because the fee might outweigh the interest that they will be offsetting."

Hutchison says fees and partial-offset accounts can hit first-home buyers the hardest because they often have small amounts of cash sitting in these types of accounts after making their first property purchase.

Offset accounts are a tax-effective way to save on interest charges because you don't pay tax on the money you stash away, as opposed to putting money into savings accounts and investments.

RateCity found that of the offset accounts that come at a cost, the average account-keeping fee is $7.81 a month.

For a homeowner with a $300,000 mortgage and a 6 per cent interest rate, a $7.81 monthly fee could result in the borrower missing out on more than $3000 over 30 years.

Suncorp Bank executive manager Craig Fenwick says there is a few ways to get the "best bang for your buck" from offset accounts.

"First you must maximise the amount of money you have in that account ... for example your salary is going into that account," he says. "It comes back down to your individual circumstances about how big your loan is, what your interest rate is paying on that loan, how much you might pay for the facility and also how much money you have offsetting against that home loan."

Fenwick says savers with cash deposits may find it more beneficial to have their money in an offset account and available "at-call" while also reducing the interest on their home loan, rather than locking it away in a term deposit.

HSBC Bank Australia's head of mortgages, Alice Del Vecchio, says every cent counts in an offset account. "Every dollar makes a difference."

View the original article here

Offset accounts may cause an upset

Offset accounts can save you big bucks. Source: National Features

MORTGAGE holders using offset accounts are risking paying fees and using partially effective accounts without even knowing.

Research by comparison website RateCity found 75 per cent of variable home loan providers offer offset accounts but about one in 10 charge an account-keeping fee.

Some accounts are not 100 per cent effective they are partially effective with interest costs charged on the offset account balance.

RateCity spokeswoman Michelle Hutchison says it is important account holders fully understand what sort of offset account they are signing up for.

"They need to find out if they are 100 per cent effective or partially effective because it will make a big difference," she says. "They also need to know if the offset account charges a monthly fee because the fee might outweigh the interest that they will be offsetting."

Hutchison says fees and partial-offset accounts can hit first-home buyers the hardest because they often have small amounts of cash sitting in these types of accounts after making their first property purchase.

Offset accounts are a tax-effective way to save on interest charges because you don't pay tax on the money you stash away, as opposed to putting money into savings accounts and investments.

RateCity found that of the offset accounts that come at a cost, the average account-keeping fee is $7.81 a month.

For a homeowner with a $300,000 mortgage and a 6 per cent interest rate, a $7.81 monthly fee could result in the borrower missing out on more than $3000 over 30 years.

Suncorp Bank executive manager Craig Fenwick says there is a few ways to get the "best bang for your buck" from offset accounts.

"First you must maximise the amount of money you have in that account ... for example your salary is going into that account," he says. "It comes back down to your individual circumstances about how big your loan is, what your interest rate is paying on that loan, how much you might pay for the facility and also how much money you have offsetting against that home loan."

Fenwick says savers with cash deposits may find it more beneficial to have their money in an offset account and available "at-call" while also reducing the interest on their home loan, rather than locking it away in a term deposit.

HSBC Bank Australia's head of mortgages, Alice Del Vecchio, says every cent counts in an offset account. "Every dollar makes a difference."

View the original article here

Offset accounts may cause an upset

Offset accounts can save you big bucks. Source: National Features

MORTGAGE holders using offset accounts are risking paying fees and using partially effective accounts without even knowing.

Research by comparison website RateCity found 75 per cent of variable home loan providers offer offset accounts but about one in 10 charge an account-keeping fee.

Some accounts are not 100 per cent effective they are partially effective with interest costs charged on the offset account balance.

RateCity spokeswoman Michelle Hutchison says it is important account holders fully understand what sort of offset account they are signing up for.

"They need to find out if they are 100 per cent effective or partially effective because it will make a big difference," she says. "They also need to know if the offset account charges a monthly fee because the fee might outweigh the interest that they will be offsetting."

Hutchison says fees and partial-offset accounts can hit first-home buyers the hardest because they often have small amounts of cash sitting in these types of accounts after making their first property purchase.

Offset accounts are a tax-effective way to save on interest charges because you don't pay tax on the money you stash away, as opposed to putting money into savings accounts and investments.

RateCity found that of the offset accounts that come at a cost, the average account-keeping fee is $7.81 a month.

For a homeowner with a $300,000 mortgage and a 6 per cent interest rate, a $7.81 monthly fee could result in the borrower missing out on more than $3000 over 30 years.

Suncorp Bank executive manager Craig Fenwick says there is a few ways to get the "best bang for your buck" from offset accounts.

"First you must maximise the amount of money you have in that account ... for example your salary is going into that account," he says. "It comes back down to your individual circumstances about how big your loan is, what your interest rate is paying on that loan, how much you might pay for the facility and also how much money you have offsetting against that home loan."

Fenwick says savers with cash deposits may find it more beneficial to have their money in an offset account and available "at-call" while also reducing the interest on their home loan, rather than locking it away in a term deposit.

HSBC Bank Australia's head of mortgages, Alice Del Vecchio, says every cent counts in an offset account. "Every dollar makes a difference."

View the original article here

Offset accounts may cause an upset

Offset accounts can save you big bucks. Source: National Features

MORTGAGE holders using offset accounts are risking paying fees and using partially effective accounts without even knowing.

Research by comparison website RateCity found 75 per cent of variable home loan providers offer offset accounts but about one in 10 charge an account-keeping fee.

Some accounts are not 100 per cent effective they are partially effective with interest costs charged on the offset account balance.

RateCity spokeswoman Michelle Hutchison says it is important account holders fully understand what sort of offset account they are signing up for.

"They need to find out if they are 100 per cent effective or partially effective because it will make a big difference," she says. "They also need to know if the offset account charges a monthly fee because the fee might outweigh the interest that they will be offsetting."

Hutchison says fees and partial-offset accounts can hit first-home buyers the hardest because they often have small amounts of cash sitting in these types of accounts after making their first property purchase.

Offset accounts are a tax-effective way to save on interest charges because you don't pay tax on the money you stash away, as opposed to putting money into savings accounts and investments.

RateCity found that of the offset accounts that come at a cost, the average account-keeping fee is $7.81 a month.

For a homeowner with a $300,000 mortgage and a 6 per cent interest rate, a $7.81 monthly fee could result in the borrower missing out on more than $3000 over 30 years.

Suncorp Bank executive manager Craig Fenwick says there is a few ways to get the "best bang for your buck" from offset accounts.

"First you must maximise the amount of money you have in that account ... for example your salary is going into that account," he says. "It comes back down to your individual circumstances about how big your loan is, what your interest rate is paying on that loan, how much you might pay for the facility and also how much money you have offsetting against that home loan."

Fenwick says savers with cash deposits may find it more beneficial to have their money in an offset account and available "at-call" while also reducing the interest on their home loan, rather than locking it away in a term deposit.

HSBC Bank Australia's head of mortgages, Alice Del Vecchio, says every cent counts in an offset account. "Every dollar makes a difference."

View the original article here

Inactive bank accounts to be seized

The government will from May 31 be able to transfer all money from accounts that have not been used for three years into their own revenues. Picture: Luzio Grossi Source: news.com.au

HOUSEHOLDS face losing up to $109 million from their family savings as the Federal government moves to seize cash from inactive bank accounts.

After legislation was rushed through parliament, the government will from May 31 be able to transfer all money from accounts that have not been used for three years into their own revenues.

This will mean that accounts with anything from $1 upwards that have not had any deposit or withdrawals in the past three years will be transferred to the Australian Securities and Investment Commission.

The law is forecast to raise $109 million this year as inactive accounts for three years or more are raided by Treasury.

OPINION: Just another boost for the coffers

The money can be reclaimed from ASIC but the process can take months.

Experts warn this will have a negative impact on people that may have put money away in a special account for their children's education or decided to put an inheritance in a separate account for a rainy day.

The previous legislation allowed for bank accounts to remain inactive for up to 7 years before the money was transferred to ASIC.

Do you have a bank account you haven't used for three years? If so, contact us at stephen.mcmahcon@news.com.au

Australian Bankers Association chief executive Steven Munchenberg said there is no benefit for consumers from the changes.

"It is very hard to see why this needed to be rushed through but there have been suggestions it was done more for the government's own financial circumstances rather than customers needs," he said.

Mr Munchenberg warned that unaware customers face having accounts frozen and could face months of delays trying to reclaim their won money from ASIC.

This cash grab comes as economists warn the government is on track to hand down a $15 billion budget deficit in May as company tax receipts collapse.

Before Christmas, Treasurer Wayne Swan junked the government's previously "rock solid" promise to produce a surplus in 2012-13.

The government had also been committed to surpluses in future financial years, too.

But despite the introduction of some tough cost-cutting measures, the latest research from global bank UBS forecasts the May budget will show a $12 billion black hole in revenues and cost overruns of about $3 billion. The biggest pain is coming from the expected $8 billion fall in taxes from the corporate sector.

View the original article here