2008 has been a fantastic year for those seeking to open up new bank accounts, although interest rate has been declining, hence reducing the potential interest from savings account, it has been a great year in terms of choices to consumers.

With the government’s decision to provide guarantee for bank deposits including savings accounts, fuelled by the uncertainties on the sharemarket and the bond market, a large amount of funds have flown back into banks, both into the traditional term deposits and savings accounts.

Banks are launching new savings accounts

Banks are launching more and more variety of new savings accounts attempting to increase their savings size and also market share especially protecting them from losing their top wealthy clients from 28th November when the Government guarantee becomes effective, and is likely to cause major banks losing customers to other savings account launched by regional banks. (more…)

Those people who are renting but want to buy their own home will be well aware of Australia’s housing affordability crisis. The Rudd Government has a scheme to help people save a deposit for their first home through a combination of Government contributions and low tax rates.

On October 1st, 2008 the Australian Federal Government launched the First Home Saver Account scheme (FHSA) with the aim of making home ownership easier to achieve. It has strict eligibility requirements, but if used correctly, people saving for a home can receive $3,400 free from the Government after four years of saving, or $6,800 if a couple open an account each.

To be eligible to open a FHSA you need to be at least 18 but under 65, have not previously purchased or built a first home in which to live, have no other FHSA (only one per person) and have an Australian tax file number.
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