Members Equity Bank launches First Home Saver Account
8 October 2008, 1:31pm
CPSU members are having now access to a new Members Equity Bank First Home Saver Account
Members Equity Bank is very excited and pleased to announce that eligible CPSU members will be able to register their interest in the Members Equity Bank first home saver account.
To enable young Australians to save more, Members Equity Bank will be offering an interest rate of 8% p.a. fixed until 28 February 2009 on this account. After 28 February 2009, the rate will revert back to a variable interest rate. No bank fees will be charged on this account. Every dollar saved with Members Equity Bank First Home Saver Account earns interest every day and is credited monthly to the account.
The Members Equity Bank First Home Saver Accounts will receive favourable tax treatment as well as a Government Co-contribution as outlined in Government legislation introduced last July.
If you are a CPSU member between the ages of 18 years and 65 years and have never owned or built your own home before, your are eligible to open a First Home Saver Account. The total amount of savings on which the account holder is eligible for the tax exemption is capped at $75,000. Government conditions demand that the account be held by the account holder for a minimum of 4 years with a minimum personal contribution of $1000 per financial year before funds it can be accessed to buy a house.
The First Home Saver Accounts was introduced by the Federal Labor Government in response to growing public concern over the declining level of housing affordability for young, low to middle income Australians.
The property boom of the 1990s led to a marked deterioration in housing affordability for first home buyers that is yet to be reversed. In 2007 the average monthly repayment on a typical first-home mortgage rose above $2,000 for the first time. *
The current turbulence in the financial markets and the flow-on effects from the US sub prime crisis have further added to the cost of purchasing a home. Members Equity Bank believes their new First Home Saver Account will create a savings culture among our young people and we look forward to offering this to our members.
