Yes you get a monthly statement showing how much you have saved. The idea is that the interest is calculated on a daily basis so the more money you have in your current account, the less interest you pay that day. seems too good to be true!
(Reposting here since it seems to have been lost in the other thread.).
NIB literature on their current-account type mortgage refers to savings accounts that can be counted as part of the offset amount.
Is anyone aware what form these savings products take or what rate they pay?
If for example they offerred a deposit account paying 1% this would make the offset product significantly more attractive than other current account mortgages (or even tracker mortgages!)
As far as i know its very simple to change over from first active fixed mortgage to current account. obviously you would need to speak to local branch re this, but i have so far found the staff to be extremely helpful.
The NIB accounts linked to the mortgage don't pay interest. Instead they reduce the interest payable on your mortgage. So effectively you're saving the rate of interest applicable to the mortgage.
Thanks CoS, I understand that as it applies to current accounts.
But they also mention linking the mortgage to an "offset savings account", which I'd assumed (as a savings account) would carry some positive interest rate of its own - otherwise what would be the point. But perhaps not - I was interested in the rate as I couldn't see how they'd avoid losing money on such a deal!