Offsetting key benefits

The offset Account (for existing Account holders only)

St. James's Place Bank no longer offers mortgages to new clients.

An offset Account is no longer available to new clients from 1st April 2010.

If you are an existing St. James's Place Bank mortgage client, you can choose to offset, and instead of receiving interest on your St. James's Place Bank current account/savings balances, you could pay none on the equivalent amount of your offset mortgage.

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 your offset Account is activated, the individual elements will be linked together. This enables you either to:

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 offset your St. James's Place Bank offset mortgage against your St. James's Place Bank savings and 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 maximise the interest earned on your St. James's Place Bank offset savings and 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.

Your home may be repossessed if you do not keep up repayments on your mortgage.