NSW Banking query: Will a mortgage off set account earn interest ? Must the off set account be in the same bank as the home loan account ?

If this answers your question ... many home buyers make a monthly payment to a holding company / lien holder / the bank / who then banks the money and pays your land taxes periodically on your behalf. YOU do not get any interest from the money that is sitting awaiting being paid to the government. IF YOU have your own self-funded savings account that the bank withdraws the monthly payment from automatically then yes, you get whatever interest that account earns. If you want a few more pennies of interest earned, become responsible to pay your own land taxes when due. I guess your $ could be in another bank that pays a higher rate of interest. Just set up a monthly automatic transfer to the holder of the home loan.

New Wales Bank? your question is too incripped details

In the USA mortgage deductions is less than the standard personal deduction so no

and again in the USA better to pay the tax than try and hide it with deductions,, while fools often do they never come out ahead it is a myth based in the idea the RICH get away with it,. not true again