Types of First Home Saver Account (FHSA)
A number of financial institutions like banks and credit unions are offering different types of first home save accounts. The first home saver accounts offered by banks, credit unions and building societies are called deposit style accounts where as the accounts offered by super funds and insurance companies are called market-linked investment accounts.
Deposit Accounts
These are the common type of investment accounts and the saving depends upon what you put in these accounts. A varied interest rate is offered by the different financial institutions.
Investment Accounts
In investment accounts your savings can be invested in share markets, property, cash and fixed interest products and things like that. You can expect a better return on your saving in investment accounts however your return rate can boost up and may decline depending upon the market situation and fluctuations. Fees can be implied on your First Home Saver Account like the account keeping fees, entry and contribution fees, exit fees which is deducted when you quit your account or move it to the other financial institution. Management fees including commissions.
If you decide to move your first home saver account to some other institution with better return rate you can ask the new institution to arrange the transfer of funds to the new account by closing the old first home save account.