Save more interest with an offset balance and pay off your principal faster.
If you have a $400,000 loan and $20,000 in total in offset balances, $10,000 in one Cash Stash and $5,000 each in two other Cash Stashes.
You would only be charged interest on the net loan balance of $380,000.
- Take your your offset balance = $20,000
- Multiply by current interest rate x 5%
- Equals the interest you could be saving per year = $1,000
It’s an interest saving cycle!