CBA gives up on first home saver accounts

Commonwealth Bank has stopped offering a First Home Saver Account – because no one wants it.

A CBA spokesman yesterday said 95 per cent of home-hunters preferred to save through term deposits and savings accounts “as opposed to using this particular product”. Even getting parents to go guarantor was more appealing.

The spokesman said customer feedback was that the FHSA was too complex and they didn't want their cash locked away for four years.

FHSAs attract a 17 per cent government contribution on the first $5500 deposited in any year. Individuals have to save the money for four years and must use the amount saved for a home loan.

Source: The Daily Telegraph