Hi there,
I just switched banks, from NAB to Westpac. Unlike NAB, Westpac has no offset facility and and I put most of my money in the home loan account to redraw as I need it. However, could I give AMEX my home loan bsb/account number to take the money out every month? This way I don't have to redraw money manually from home loan and put it in the transaction account to pay the credit cards every month.
Bank usually provides the dumbest solution in its advantage, like put enough money on the transaction account every day.
DD unlikely. Normally only transaction account in your name can be linked to the loan account, and you can only withdraw from linked account.
It depends on the product you have and its conditions. Westpac definitely do offer offset accounts so it sounds like you have gone with a product that has lots of limitations.
Can confirm there is offset. Only the basic rate home loan doesn't have an offset.
Yes, one has to manually move it with basic homeloan for a Westpac Group bank.
With St.George basic homeloan, I can schedule payment from homeloan account to transaction account. It should be the same with Westpac. I dont think any other party can debit fund from homeloan account directly.
If AmEx payment is due on 10th Oct (Sunday), schedule the payment to be withdrawed from homeloan account to transaction account on the 11th Oct (Monday) when you receive the statement. If due date is on a weekday, withdraw it on the exact weekday. You can do the same with monthly homeloan repayment on a regular basis (move money out and auto pay back on the same day).
Ditto here to maximise interest saving. Although OP's reads like wanting an extra step of automation and not have to manually schedule transfer AND pay off exact Amex balance?
Edit: was not saying you're wrong. Just think OP wants more.
How would the schedule know how much your credit card payment is each month?
I said in the two commnets above "has to manually" and "when you receive the statement"
Then why would you need to schedule it, instead of simply transferring it at that time?
@brendanm: Coz when you receive the statement, you know when and what the amount so that "schedule the payment" actually means "paid off in future", with the longest possible period for the money staying in your homeloan account to save interest. You can also forget about it as there is nothing to do later.
Thanks all. I'm trying to minimise the manual input and constantly tracking CC statements. I set up a direct debit from my home loan to 28 degrees card to test this which is due tomorrow. If it works it is a great convenience.
It is so silly to move money out to transaction account for home loan repayments to be made back in to the loan account. Extra money is already in the home loan account! I'll check this with the bank.
For St George, it has to be done like that. If I do not do it, any withdrawed amount for Credit Card issuer to debit will be taken back as homeloan repayment on the same day in the next few weeks, from my personal exp.
I only replied to your 2nd part of the comment. For the 1st part, most likely it wont work and you may be penalised for it. There should be a chart pdf shows which activities are allowed for different types of accounts. A homeloan account with redraw is like a saving account and does not allow 3rd party to debit fund in most cases.
Update: 28 degrees direct debit did not work but I think it just because I set it up only a day before its due date.
Just called the bank to clarify repayments and direct debits we discussed above. They said:
1 - As long as I have the redraw facility activated I can pay my Westpac and/or third party credit cards with direct debit from the home loan account.
2 - If I have excess funds available in the home loan account I don't need to arrange repayments from the transaction account. In fact, she cancelled my monthly direct debit repayments over the phone so the repayment amount will draw down my excess funds in the home loan account every month.
I'll keep monitoring the accounts next few weeks to make sure it all works.
Update 2: I confirm direct debit from the home loan account works! I see no reason to pay extra for an offset account. I'm glad I made the change!
Thanks for the update. I think I wont make a change now as it is all set and I am thinking of leaving STG.
ask the bank?