First home buyer accounts launched

ANZ, Commonwealth and AMP Bank will today announce details of their new first home buyer savings accounts. Under a federal government scheme to be introduced on the 1st of October, savers will be eligible for a government co-contribution of 17 cents per dollar if they save $1,000 per year in the accounts. Account holders must be aged between 18 and 65 and the savings can only be used to buy a first home. Account balances are capped at $75,000 and taxed at a lower rate than normal savings accounts. Couples who save $10,000 per year will be eligible for a top-up from the government of $1,700. Commonwealth will pay 6.5 per cent interest while ANZ is offering 7 per cent if savers contribute a minimum of $10 per week. AMP will offer 8 per cent as an introductory rate. NAB said it will launch its' first home buyer savings account soon. Westpac said it had no immediate plans to launch an account.

Source: Herald Sun

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