Can I Use Redraw Account for Day-to-Day Banking?

nnaa8287 on 24/03/2023 - 16:01

Currently I have a loan facility with offset account. Which means a loan account and an offset account. I use offset account for all my salary, expense, direct debits etc.

Its time for me to refinance and I am looking at unloan which is offering a good rate with an unlimited redraw facility (0 fee) only. There are other banks offering good rate with an unlimited redraw facility as well.

My question is that if I opt for the redraw will I get two separate accounts i.e. loan account and a redraw account? and Can i use the redraw account for day-to-day banking just like I am doing it from my offset account?

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Comments

  • avoidfullprice on 24/03/2023 - 16:05

    One account with ability to redraw.

    You need to ask unloan whether you can direct debit out of the loan account, or attach a debit card to it

    • nnaa8287 on 24/03/2023 - 16:38

      So this means there will be only one account. This means I have to direct all my deposits such as salary, my wife's salary and any other deposits. This will be hard to keep track of my own money and the loan money. In my current situation, I have a full track of my earnings and deposits. I think this will be a challenge

      • avoidfullprice on 24/03/2023 - 18:22
        +2

        Have you asked unloan yet? Or you content with Aidan’s reply?

        Not sure listing your challenges have anything to do with your questions.

        If you ask how you can work around these challenges i have some suggestions, but I expect you will list follow up challenges like we need to fix your problem.

        Good luck

        • nnaa8287 on 26/03/2023 - 02:33

          I am not asking you to fix my problems. I am simply asking if my understanding is correct by mentioning "This means I have to direct all my deposits such as salary, my wife's salary and any other deposits" to gain a similar benefit as what I am getting from the offset account. And the second one is a challenge which I think may appear when moving to redraw and trying to find out how others are managing this.

  • footyboy on 24/03/2023 - 16:28
    +3

    Offset = your money
    Redraw = the bank's money

    You have to request redraw back, at the bank's criteria and timeframe.

    Also be aware of future tax implications if you ever rent your property out.

    In answer to your question, unloan does not have a banking account.

    Aidan.

  • dcep on 24/03/2023 - 17:05

    depends on your banks

    most big banks offer unlimited redraws

    i can redraw 4 dollars instantly from homeloan into my transaction account to pay for a pizza right away

  • MITM on 24/03/2023 - 21:27
    +4

    All funds go into new mortgage.
    Use a credit card for all your day to day expenses & direct debits etc. (collect points)
    Pay/sweep the credit card with your redraw once a month. No cc interest ever paid.
    Everything’s itemised and simple.

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