How to check your offset account is working properly after $55 million error exposed

The corporate regulator analysed the offset practices of eight banks , which it said represent more than 70 per cent of Australia's $2.5 trillion home loan market. It found weaknesses in how all banks established, monitored and managed offset accounts. Reports to ASIC between September 2023 and August 2025 showed that banks paid over $55 million in customer compensation for offset account failures . In some cases, customers were repaid over $17,000 due to system limitations or administrative errors. Offset accounts operate like everyday transaction accounts, which can be used to deposit and withdraw money. But they're often marketed as a simple way to reduce home loan interest. That's because money held in an offset account also reduces the outstanding amount owed on a home loan, which is used to calculate the interest paid on that loan.