NewsWire / Nicholas Eagar Credit: NewsWireAn offset account acts like a normal transaction account; however, savings in the fund are used to offset against interest owed on the mortgage. Canstar data insights director Sally Tindall said offset accounts were a powerful tool but only if they are used properly. ASIC warns despite the extensive remediation paid to Australian mortgage holders, the banks reported a low volume of offset account failures in the data request. “When offset accounts don’t operate correctly, the harm can be hidden. “We expect all banks to identify and address offset account failures and ensure affected customers are appropriately compensated.”