Redraw facilities versus offset accounts

Redraw facilities and offset accounts are about putting your money to work. Both options have the potential to help reduce the amount of interest you pay on your home loan, either by making additional repayments or by putting additional funds into a linked account. Let's break it down:

A redraw facility allows you to make extra repayments to your home loan in addition to your minimum monthly or fortnightly repayments. The extra money you pay towards your loan can typically be taken out if you need it, for example, if an unplanned expense comes up. The idea with this option is that the extra repayments you make work to reduce the amount of interest charged on your home loan.

Bendigo and Adelaide Bank Limited (ABN 11 068 049 178, AFSL and Australian Credit Licence 237879) (“Bendigo Bank”) is the credit provider. Credit services are provided by Tiimely Pty Ltd (ABN 41 605 696 544 and Australian Credit Licence 496431) (“Tiimely”). Insurance Australia Limited trading as NRMA Insurance (ABN 11 000 016 722) (“IAL”) does not hold an Australian Credit Licence. IAL may receive a commission from Bendigo and pay a commission to Tiimely if your loan application is approved.

Terms and conditions, fees and charges apply. All information is subject to change without notice. Full details available on application. Lending criteria apply. The Offset Account is available on the Offset Home Loan only for both fixed and variable products and must be linked to an Eligible Home Loan account. The Offset Account product can only be linked to one eligible Home Loan account at any one time. Linked offset facility must be in the name of the customer name/number. Insurance Australia Limited is a member of AFCA. If you have a complaint about the home loan or offset account please refer to www.nrma.com.au/home-loans/complaints. Other fees and charges may apply and can found at the Rates & Fees page. This is general advice only and does not take into account your individual objectives, financial situation or needs (“your personal circumstances”). Before using this advice to decide whether the Offset Account product is right for you, please consider your personal circumstances and read the Offset Account Terms and Conditions to determine if this product is right for you. The Offset Account Terms and Conditions and Offset Account TMD are available at nrma.com.au/home-loans.