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Offset vs Savings Account Calculator

Should your spare cash sit in your offset account or a high-interest savings account? This compares them after tax — and shows the savings rate you'd need to beat the offset.

Last verified: 5 May 2026

Offset account or savings account?

With a mortgage, the offset almost always wins: the interest it saves is tax-free, while savings interest is taxed at your marginal rate. Same access, better return. Source: ASIC MoneySmart.

Worked example. $50,000 against a 6.2% loan saves $3,100/year tax-free. In a 5% savings account at a 32% marginal rate you'd net only ~$1,700. The offset wins by ~$1,400 a year.
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General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.