First Home Saver launches Online Calculator

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Tuesday, 14 October 2008

FirstHomeSaver.com.au has today launched the first online First Home Saver account calculator to give young Aussies a clear picture of the savings potential a First Home Saver account has over regular savings accounts.

Launched on 1st October, First Home Saver accounts are a new initiative from the Federal Government designed to give Australians a helping hand into home ownership. Savings in a First Home Saver account attract bonus money from the Government, and like superannuation, earnings are taxed at a low 15%. These benefits aim to boost deposit savings for first time home buyers.

The First Home Saver account calculator uses income and savings variables to project an end balance. The outcome is then compared with a regular savings account, highlighting how much extra could be accumulated via the new accounts.

Research undertaken by information website FirstHomeSaver.com.au showed that a high 89% of young Aussies surveyed* are considering opening a First Home Saver account. Despite this just two of the major banks and several credit unions are offering the accounts, with none of the major super funds showing an interest.

"The success of first home saver accounts is linked with savers being able to immediately see the benefits of having an account, and understanding the impact on their savings for a first home" says a spokesperson for Firsthomesaver.com.au. "The First Home Saver account calculator is designed to provide that information".

The First Home Saver account calculator was used to shows how someone earning $55,000 p.a. and able to save $550 / month in a First Home Saver account could achieve a deposit balance of $52,256 after six years, a boost of $7,232 over a regular savings account. This difference wipes nearly a year off the time it would take to save the same deposit in a regular account, and could also mean another $11,648 saved for the average renter household^.

* Firsthomesaver.com.au research conducted July-Oct 2008 (379 survey respondents).
^ The average housing costs for private renter households $11,648 : ABS Australian Social Trends 2008 Renter Households.