First Home Buyer Accounts are complex and costly

The Federal Government's new high-interest savings account to boost first-home deposits are off to a slow start. Hefty policy requirements appear to be making the account onerous, expensive and complicated to provide. Experts say that the market for people saving for their first home is too small to make the accounts viable for many Superannuation funds and smaller institutions. It was designed to give First Home Buyers the opportunity to receive government co-contributions for saving money that will be spent only on a deposit for a first home.

Despite the slow start, at least 3 main banks have now agreed to offer the accounts, along with a slew of building societies and credit unions. Commonwealth Bank will offer their first home buyers account through all branches from 1st October. ANZ's first home buyer account will be available online and AMP will pay a bonus 1% interest on its first home buyers account between 1st October and 31st December.