Do First Home Saver Accounts work?

First Home Saver Accounts were introduced by the Rudd Government in 2008. The accounts must remain open for four years and the government makes contributions of 17 per cent ($1020) for the first $6000 deposited each year.

First-home buyer Lucy Hocking, 24, opened up a FHSA when she was 19. “I viewed it as a forced savings and there was no temptation to spend the money because I knew I couldn't,” Hocking says. “They are good accounts when you are young and you know you don't want to buy a house immediately.”

Source: Herald Sun