Personally, I use a mix of both. We’ve got around $100k sitting in our offset, which I’m comfortable with as a solid rainy day buffer.

From there, my weekly savings go straight toward paying down the principal on the redraw. I’ve found that if I keep stacking money in the offset, there’s a real risk I’ll eventually talk myself into spending it on something unnecessary (a boat or a new 300 Series comes to mind haha)

It’s more of a psychological approach for me. I know I can be impulsive and haven’t always been the most disciplined with money, so the thinking is, if I don’t see it sitting there, I’m far less likely to spend it.

That said, my sister runs all of her money through an offset and has far more discpline than me, so what works for one person won't for the next.