When you get your bank statement in each month you may notice that you earn a tiny bit of interest on your balance – but did you know that your day-to-day current account can be used for so much more?

The interest accrued on current accounts is miniscule – you may make as much as a few pence from your month’s money. It’s nothing to write home about and it’s disconcerting to think that your money, which you worked so hard for, isn’t working hard for you.

But it can with an offset mortgage – a current account linked mortgage will use your day-to-day bank account and help you save money at the end of each month.

Essentially a current account balance is offset against your loan in much the same way that your savings would be – the more you have offset against the mortgage, the lower the rate. And that’s calculated daily, so the more money you have saved for the more days, the bigger the ‘average’ offset. So if you can offset as much as you can against your mortgage for as long as you can, you will save money.

This means making your account work for you – move your direct debits so as to leave your account at the end of the month instead of the start, try and put off big purchases until the end of the month or even use a low limit credit card to pay for day-to-day things like petrol and food, paying it off at the end of the month.

Doing all this will mean your balance stays higher for longer, and the more you have offset against your mortgage for the month, so the cheaper the rate.

This low rate environment is making it harder than ever to make your money work for you, so you have to be proactive. Talk to your mortgage adviser about the great innovative offset mortgages that are available on the market right now.

To stay abreast of current trends, news and comment on offseting mortgages visit the Offset Mortgage Blog.