How does an offset account work?
It works by connecting the account to the eligible loan, and you are only charged interest on the difference in amount. For example, if you have a home loan for $200,000 and have $10,000 in your linked offset account, interest is only calculated on the difference, in this case, $190,000. The benefit is calculated daily based on the account's balance and applied to the interest amount charged at the end of the month.
*A minimum $500 balance must be retained in the Offset Account to receive the benefit.
https://www.beyondbank.com.au/need-help/how-does-an-offset-account-work