Saving a Deposit

Saving a deposit for a home is possibly one of the hardest yet most rewarding exercises you can undertake. There are a myriad of products on the market these days that don’t require much to get started and a good starting place is looking at online savings accounts. This style of account does not have any ongoing charges and access for deposit and withdrawal of funds can only be done online which removes any temptation to hit the ATM or EFTPOS whilst out on the town. Online accounts usually have no restrictions on minimum balances or monthly deposits and offer a much higher interest rate than an everyday bank account. Furthermore, with deposit accounts, if home loan rates are increasing, deposit rates will normally increase at the same time.

Term Deposits also offer a very good interest rate and cost nothing to set up however there is usually a minimum deposit required and the money is locked away for a set term – if you need to access the funds before the term is finished, you may end up losing some or all of the interest earned and unlike online savings accounts, the interest rate will not increase when lending rates go up.

Other options are setting up a direct debit via your payroll so that a set amount of money comes out each payday before you see it or looking at one of the Government-sponsored first home savings plans

Click here for our savings tools to see how much you need to get started
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First Home Saver Accounts

On 4 February 2008, the Government confirmed its 2007 federal election commitment to establish First Home Saver Accounts to assist Australians aged 18 and over to save for their first home.

First Home Saver Accounts are the first of their kind in Australia and will provide a simple, tax effective way for Australians to save for their first home through a combination of Government contributions and low taxes.

Click here to learn more about First Home Saver Accounts