First home saver accounts

A new government scheme provides incentives for new home buyers, but watch for traps.
 
Learn more
 
 
 
 
 

05.What you can earn

The table below estimates what a First Home Saver Account will account will grow to, based on different savings amounts and a 4% interest rate (before tax) and other important assumptions. For a more detailed calculation, go to the ASIC calculator.

First Home Saver Account approximate growth assuming 4% average interest per annum

First Home Saver Account approximate growth assuming 4% average interest per annum
Your annual savings ($) 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000
Year 1 1,204 2,408 3,612 4,816 6,020 7,054 8,088 9,122 10,156 11,190
Year 2 2,449 4,898 7,347 9,736 12,245 14,348 16,451 18,554 20,657 22,760
Year 3 3,736 7,472 11,209 14,945 18,681 21,890 25,098 28,307 31,516 34,724
Year 4 5,067 10,134 15,202 20,269 25,336 29,688 34,040 38,391 42,743 47,095
Year 5 6,444 12,887 19,331 25,774 32,218 37,751 43,285 48,819 54,352 59,886
Year 6 7,867 15,733 23,600 31,466 39,333 46,089 52,845 59,601 66,356 73,112
Year 7 9,338 18,676 28,014 37,352 46,690 54,710 62,729 70,749 (A) (A)
Year 8 10,860 21,719 32,579 43,438 54,298 63,624 72,950 (A) (A) (A)
Year 9 12,433 24,866 37,298 49,731 62,164 72,841 (A) (A) (A) (A)
Year 10 14,059 28,119 42,178 56,238 70,297 (A) (A) (A) (A) (A)
 

Assumptions 

  • Interest rates and your annual savings amount don't change over the period of your investment (4 years+).
  • All contributions you make are at the start of the year so they earn interest for the full year.
  • The government contribution is credited to the account at the end of the financial year and immediately begins to accrue interest in the next year.
  • Interest is calculated and compounded annually. Many institutions will compound interest monthly or quarterly, meaning the account earns more interest.

Table note

(A) The balance is capped at $75,000. Once the cap is reached, you can’t make any further contributions, however, interest and any outstanding government contribution will still be credited to the account. The amount of the cap is supposed to be increased in $5000 increments in line with inflation in future years.

 

Sign up to our free
e-Newsletter

Receive FREE email updates of our latest tests, consumer news and CHOICE marketing promotions.

 
Your say - Choice voice

Make a Comment

Members – Sign in on the top right to contribute to comments