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Teachers Credit Union hosts Minister at First Home Saver launch
01 October 2008
Teachers Credit Union will today host at its Homebush offices the launch of the government’s First Home Saver Account initiative by Tanya Plibersek MP, Minister for Housing.
“By creating a focus on saving for a purpose, the First Home Saver Account will contribute to greater financial literacy, especially among younger people,” said Steve James, Chief Executive of Teachers Credit Union.
“The incentives provided by the government’s co-contribution (17 cents for every dollar saved) and concessional tax rate (15%) applied only to the interest earned in the account will significantly boost the savings efforts of those wanting to acquire their first home, and hopefully encourage a savings habit for life.”
“Parents and grandparents of young people just starting out, can also contribute to these accounts on their behalf. It’s a great way to help them acquire their first home, and the nature of these accounts means they can be secure in the knowledge the money will be used to fund their child or grandchild’s future,” said Steve James.
As financial institutions are not obliged to offer the First Home Saver Account (FHSA), Teachers Credit Union will be among the first to make it available. Teachers Credit Union’s FHSA will be available to everyone, regardless of whether they are a member of the teaching community or their families.
The financial institutions offering FHSAs can set their own interest rate, crediting frequency, fees and charges.
Teachers Credit Union’s First Home Saver Account offers an interest rate of 7% pa, with no regular fees or charges applied to the account, and no minimum balance or contribution amount.
All financial institutions offering the product must adhere to the conditions laid down by the government. These include that: the government will contribute 17% of the first $5,000 each individual contributes each year; other people, such as family members, can make contributions on behalf of an individual; income earned on the amount will be taxed in the account at 15%; the accounts are open to people aged between 18 and 65; the account holder must save at least $1,000 pa in four separate financial years, to be able to withdraw the funds; no minimum annual deposit is needed to keep the account open.
Teachers Credit Union is the largest credit union in NSW and the second largest in Australia based on on-balance sheet assets. It currently has more than 157,000 Members and over $2.6bn in assets.