First Home Saver Bank Account

The First Home Saver Bank Account is a unique prospect for any first time home buyer in Australia to fulfill his or her aspirations. This futuristic program is well on its way to success. The program will allow you to make withdrawals from your savings only for three purposes:

1. If you are going to buy your first home in Australia.
2. If you need money to add to your superannuation program.
3. If you need to withdraw as a lump sum (at age 60 or above).

The first home saver bank account allows you to use it in the same way as your normal bank account. You can deposit money into your account at any time. But there are some limitations with regard to the way you make your withdrawals. All withdrawals made for buying the first house is completely exempt of tax. Also there is a lower tax rate of only 15% charged on all interest accruing in such account.

There are many different benefits of using the first home saver bank account. Some of them include:

• The government contributes a part of your savings to buy your first ever home in the country of Australia.
• All the money you put into your account, all the contributions you get into such account from the government plus the money you withdraw from such account for that first house of yours – none of them are taxed at all.
• All your earnings from such first home saver account are taxed at a very low rate of only 15%.
• If you plan to not buy a house at a later stage, you always have an option of either moving all you’re saving to your super or to withdraw the entire amount as a lump sum at the age of 60 or above.

Make sure that you use the First Home Saver Account policy only if you can wait for four financial years before you buy that first house of yours. Also you cannot make use of such savings for buying a house that you are not going to live in. you cannot in other words use the FHSA money to buy a house for investment purposes. Make good use of this contribution money for setting up your own house early on. In addition, you can avail the First Home Owner Grant at the same time as when you apply for FHSA program.

If you are still wondering as to how the FHSA can help you with regard to home deposit, you need to know that the government puts in the money along with you into your own account. In other words, when you put in 1 dollar into your account, the government puts in 17 cents, up to a maximum of $5,000 from your end. So if you happen to put in $5,000 in to your account, the government will contribute $850 in return. The government thus boosts your savings with its own contributions and charges a very low rate of income tax on all your investments into this account.