An offset account is a standard bank account linked to your home loan. The money you deposit in the account is offset against what you still owe. The more money you have in your offset account, the less total interest you will need to pay. For example, if you have a home loan of $500,000 linked to an offset account with $50,000 in it, you would only be charged interest on $450,000. Home loans that offer offset accounts have various settings that change how they function and how much you can save. When you compare home loans, it’s a good idea to investigate the details of a home loan with an offset account, so you know if it will be worthwhile for you.