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A helping hand to home ownership
To sum it up, using the account means that the more you save towards your own home, the more the government will help you out. Whereas standard, high interest savings accounts may help you accrue between six and seven percent interest on your hard-earned pennies, with the FHSA, you can earn up to 17 percent interest. And that’s a whole heap of ‘free’ money.
But the benefits don’t stop there. The government has also provided a tax incentive, meaning that none of the income earned from the account has to be reported on your tax return.
If it sounds too good to be true, then it’s worth noting that, should you choose not to put the money you’ve saved in the account towards a new home, you can’t simply withdraw it along with all the interest earned. Rather, the money can only be siphoned into your superannuation fund. Unless you’re committed to using your savings to buy a home, therefore, it’s worth proceeding with caution.
To find out more about the FHSA, click here.
Have you heard of the FHSA? What was your experience? Have you any other savings tips for our readers hoping to buy their first home?
About the Author
Lizzy has more than ten years’ experience in the print and digital publishing arena and is the Editor at Single File. Having moved from the UK to Australia in 2008, Lizzy has worked for a number of leading publishers in Sydney and has particular expertise in the health, wellness and travel markets. If you have any questions for Lizzy, you can send them across by email to firstname.lastname@example.org.