Home loan customers can establish up to 10 offset accounts.
Bank is introducing an option for its home loan customers to set up multiple offset accounts, with a maximum of ten accounts, at no extra cost.
The new feature will be available for lenders and brokers to request on behalf of eligible customers starting from 17 February 2025.
This comes as the Australian bank— one of its four largest in terms of assets— saw a 37% surge in the number of offset accounts opened over the past 5 years.
Westpac also reported a 63% rise in offset account balances over the same period.
"We've noticed a steady rise in customers increasing their offset balances. We will be introducing the ability for customers to set up up to 10 offset accounts to provide greater flexibility in how they manage their savings, and reduce the interest charged on their home loan," said Westpac Managing Director of Mortgages, Damien MacRae.
Westpac found a way to reduce their home loan.
This type of bank account is linked to your home loan. Every dollar in the account reduces, or offsets, the interest you pay on your loan.
"For instance, if you have an offset account balance of $10,000 and deposit $100 each month, you can save over $110,000 in interest on a 30-year home loan of $500,000. This would also shorten the loan term by almost three years," according to Westpac.
Existing customers of St.George, Bank of Melbourne, and BankSA already have access to multiple offset accounts.
Starting in March, eligible home loan customers will be able to manage their offset accounts online by searching for "offsets" in the Westpac app and selecting "manage offset accounts".
Alternatively, Westpac customers will be able to visit any branch or contact Westpac directly to establish their accounts.