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Is an offset sub-account a separate bank account?

Although an offset sub-account works similarly to a traditional bank offset account - allowing you to transact, save and spend - it is actually a feature that forms part of the loan, not a separate deposit account.

Providing sub-accounts allows non-bank lenders to offer “bank‐like” functionality (real‐time payments, debit, salary deposits) without holding an ADI license or customer deposits.

Key things to know:

It's a sub-account of your loan, not a separate deposit account
Funds in the offset sub-account are not covered by the Financial Claims Scheme (FCS) deposit guarantee, as the sub-account forms part of your loan rather than being a separate deposit account
The offset balance cannot exceed your home loan balance
You get full access to your money in the sub-account via online and/or mobile banking, ATMs, EFTPOS, and a debit card

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Is an offset sub-account a separate bank account?

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