Will the First Home Saver Account benefit you?

Friday October 3, 2008

There has been a lot of discussion about the new First Home Saver Account. Some of it is positive, some negative. For people that want to buy their first house within the next four years are unlikely to benefit from this account. Four years is the minimum amount of time before you can access your savings. Otherwise, the money is put into your superannuation account.

Saving for a deposit for your first house can be difficult. It is not impossible to save a respectable amount of money in a short period of time. However it often requires some sacrifices to be made. Many people have lavish lifestyles that they are reluctant to give up. But if you save $5,000 a year, you'll have $20,000 within the four year period. This is a respectable amount to make a deposit on your first house with.

If you're planning to buy your first house much sooner, a high interest savings account might suit you better. If you put $250 a week into your bank account, you will have saved $13,000 in one year, not including interest. If you do this for two years, you will have saved $26,000, not including interest. That's quite a lot of money for the deposit on your first home loan.

If you're interested in a savings account with high interest, you can apply for a savings account online and start saving for your house deposit today.

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