An offset account is a bank account that is linked to a home loan. Any cash in the offset account can reduce the amount of interest you pay on a mortgage by offsetting the balance of the account against the mortgage balance. Using an offset account can be beneficial if you want to reduce the amount of interest being charged on your mortgage and enable you to pay down the loan faster. However, having an offset account can often come with additional yearly fees or a higher interest rate. Depending on how much cash you’re planning on keeping in the offset account, will determine whether it’s worthwhile having.