I've been reading through the information in the forum (weatlth of knowledge, thank you) but I couldn't find a discussion comparing offset account and term deposit. I recently purchased a house as IP and I'm trying to compare the benefits of leaving funds ($50K) in the offset account vs keeping it in a term deposit. I know that I will pay taxes on interest in the term deposit but running the numbers it seems that it's still worthwhile maintaining the full interest amount and receiving tax return on it. My income situation is between 38% marginal tax. Any advice?