I received an interesting letter from ANZ a while back headed “Important information about ANZ Home Loan Offset accounts”, whilst I don’t think it affects me I thought I would explain the significance of “Allow up to 5 days for your new account to be linked to your loan”.
Lets so you are switching to ANZ, you have a $400k loan, a moderate $100k in the offset account and an interest rate of 6%.
Lets do the maths;
- Annual interest saved with the offset: 0.06*100,000 = $6,000
- Daily interest saved with the offset: 6,000/365 = $16.40
- 5 days of lost interest savings: 5*16.40 = $82.20
Or an extra 2 basis points on the total interest for that year.
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