An offset account is a transaction account linked to your home loan. The balance in your offset reduces the interest you’re charged — so $50,000 in offset on a $500,000 loan means you only pay interest on $450,000. Over a 30-year loan, a well-used offset can save tens of thousands in interest. Offset accounts are typically only available on variable rate loans. Paddy recommends an offset for most borrowers who can maintain a regular balance in it.