A type of bank account (a transactional account) that’s linked to a mortgage account (home loan) so that the interest paid on the loan will decrease in proportion to the deposits made into the account out of savings and personal income. In other words, a depositor (accountholder) can deposit his/ her salary and savings into the account and the balance is then offset against the amount owed on his/ her home loan.

An offset account, in general, combines the features of a traditional mortgage (amortizable loan) with one deposit accounts or more at the same bank/ financial institution.