A 100% offset account is a savings transaction account linked to a home loan account.
No interest is paid to the offset account but instead the balance of your offset account is deducted from your loan account before the interest on your loan is calculated. Therefore less interest is charged to your loan. Offset accounts are useful for owner occupiers (home loans) because they allow the borrower to save on their overall cost. Offsets accounts are also the perfect mortgage feature to assist with an investors long term tax preservation strategy.