Heritage Bank offers its members two different types of offset accounts depending on the structure of the home loan. The loan offset is a transaction account attached to your home loan, with a portion of the balance of the account being deducted from the principal you owe on the loan each month. When the interest payment owed is calculated, it is calculated against a lower amount, thereby reducing the amount of your payment.
What are the features of the Heritage Bank Loan Offset account?
A number of Australian financial institutions offer loan offset accounts in conjunction with their home loans. If this is something you are considering to help save money over the life of your loan be sure that you compare these features from Heritage Bank with what the other banks provide:
- Monthly account keeping fees. You don’t have to pay any monthly fees for this account.
- Availability. The loan offset is available for individuals who have the standard variable or fixed rate home loan with Heritage Bank. It is also available with personal loans except for the low rate secured loan.
- Accessibility. You can choose to make your everyday financial transactions with an EFTPOS card, Visa debit card or chequebook. Free phone, internet and mobile banking is also included.
- Electronic transactions. You are allowed an unlimited number of direct credits and debits without incurring any charges.
- Transaction limits. You may make up to ten ATM withdrawals and enquiries, EFTPOS transactions, presented cheques and counter cash withdrawals, cash transfers or BPAY before incurring any additional fees. These are charged at $1 per transaction after you have reached the limit, except for the ATM fees, which are $1.75 if you exceed ten in one month.
- ATM use. Withdrawing cash or making an enquiry at a Heritage Bank ATM is always free, but you can also use BankSA, Bank of Melbourne, St.George and Westpac ATMs ten times in a month before you incur the $1.75 fee.
- Overseas withdrawals. You can use your Visa debit card to make cash withdrawals when traveling abroad, but will be charged $5 each time plus a currency conversion fee. You may also be charged extra by the bank that you are withdrawing from.
- Offset type. This is a partial offset account, where a portion of your balance is deducted from the principal amount. If you are interested in a 100% offset account, look at the features of Heritage Bank’s Mortgage Buster.
- Membership. In order to open a Loan Offset or any other product from Heritage Bank, you must first become a shareholder of their customer owned bank.
- No account keeping fee
- Internet and phone banking available
- Save on interest payments on your home or personal loan
- Up to 10 fee-free transactions per month
How do I apply for the Heritage Bank Loan Offset?
In order to open a Loan Offset account you will first need to have a home or personal loan with Heritage Bank, and fill out an Offset Account Link form which you can find on Heritage Bank website. Other eligibility requirements for the Loan Offset include:
- Loan type. The following loan types from Heritage Bank are permitted to be linked to a Loan Offset, Basic Variable, Standard Variable, Premium Variable, Standard Fixed Rate Loans, Professional Package Variable, Professional Package Fixed, Home Advantage Variable, Home Advantage Fixed, Variable Options, and Personal Loans. Not included is the Low Rate Secured Loan/Cake & Eat It Loan.
- Membership number. The offset account and home or personal loan must be under the same membership number.
You can type into the online form, print it and then return it to Heritage Bank for review. If you prefer, you can also request a Loan Offset by visiting your local branch or giving them a call. Once the account has been linked to your loan, you can begin making deposits to help offset your interest payments. Your EFTPOS or Visa debit card will be mailed to your home address once the account has been opened.