According to David Potts in today’s SMH, only one in ten first home buyers are taking advantage of the federal government’s ‘first home saver account’, which pays a whopping 17% plus normal interest of about 4%! Furthermore, it is taxed at a flat 15%, half of the average rate.
The government’s contribution is capped at $1020 per year, and there are terms and conditions about how the money can be used, but all you have to do to receive the maximum benefit is deposit $6000 annually for three years. It’s easily the best way to earn a 21% return on your cash with little, if any, risk.
