Money Hack: How to reduce your car loan by $2,500
Did you know your savings account could reduce your car loan principal?
Having a car loan can be tricky. You want to pay down your car loan but you also want to save money for a rainy day or to put towards investments. So, should you prioritise paying down your debt or building up your wealth?
What if I told you that you could do both?
The hack
Beyond Bank lets you offset your car loan by up to $2,500 with its innovative Car Budget Account. By applying for a new car loan with the bank or refinancing your current car loan, you can open the Car Budget Account and use it like any other transaction account.
It's designed to help you budget ongoing expenses, such as petrol, insurance and registration, and the transactions are fee-free. Any funds you have in the account up to $2,500 reduce your car loan principal by that amount, saving you interest and helping you pay off your car loan sooner.
Some points to keep in mind:
- Maximum offset is $2,500
- Visa payWave debit card available
- Mobile banking app available
- Transactions are fee-free but some fees and charges apply
Find out more about Beyond Bank's car loans here and make sure you compare your options before you apply.
finder money hacks is a bi-weekly round-up of the latest tips and tricks to improve your finances. Check back every Wednesday and Saturday for new hacks.
Picture: Shutterstock
