The Offset Account

A St. James's Place Bank Offset Account offers you a portfolio of banking facilities, consisting of one of our offset mortgages, a savings and a current account.

Individually, all of these facilities come with attractive rates and features. However, the real benefit of offsetting with St. James's Place Bank - and what makes it of value to clients - is obtained by linking your facilities together, and then choosing how to take your offsetting benefits.

Linking your facilities to leverage extra benefit

When you set up your offset Account the individual elements can be linked together. This allows you to link your offset mortgage to your savings with the option to either:

1. Reduce the amount of interest you pay on your offset mortgage
or
2. Increase the interest you receive on your savings and current account

Reduce the amount of interest you pay on your offset mortgage

With Option 1 you can choose to offset your St. James's Place Bank offset mortgage against your St. James's Place Bank savings and/or current account balances to determine the net balance on the offset Account. Interest is then charged or applied at the appropriate rate. There is an additional advantage of linking your facilities with this option in that, whenever your savings and current account are offset against your offset mortgage, the interest saved is equivalent to it being earned on a gross basis with no tax liability.

Increase the interest you receive on your savings and current account

With Option 2 you can maximise the interest earned on your St. James's Place Bank offset savings and/or current account balances up to the maximum debit balance of your offset mortgage, although this is, of course, liable to tax in the normal way.

Whether you choose to reduce the amount of interest you pay on your offset mortgage or to increase the interest you receive on your savings and current account, the interest calculation is performed for you automatically on the basis of your daily balances.

Our offset account demonstration illustrates how the two options can work for you.

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