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ABC FIRST HOME SAVER ACCOUNT

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ABC FIRST HOME SAVER ACCOUNT

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									 This document was produced on 07/07/08



 ABC FIRST HOME
 SAVER ACCOUNT
•	The	First	Home	Saver	Account	has	been	developed	by	the	                                                      ABC Enquiries        1800 111 222
  Government to make it easier to save for your first home.                                                    More contacts        Go to section 9

•	This	Account	receives	Government	contributions	and	                                                          More information and tools to help you
  earns interest which is taxed at a low rate.                                                                 make a decision about this product are
                                                                                                               available online at
•	This	account	restricts	when	you	can	take	your	money	out	                                                     www.ato.gov.au and
  and for what purpose.                                                                                        www.abcbank.com.au




 Find out if the ABC First Home
 Saver Account is right for you
 1.                         2.                           3.           4.          5.             6.            7.                   8.
 Who can                    How the First                How the      How ABC     What happens   Using your    The fees             How to open
 have a First               Home Saver                   Government   helps you   if your        savings for                        an account
 Home Saver                 Account                      helps you    save        situation      your first
 Account                    works                        save                     changes        home

                                                                                                               For more information about the ABC Bank
                                                                                                               go to the last page

 first home saver account product disclosure statement
  1.                                                  2.                                                  3.                                                   4.
  Who can have a First                                How the First Home                                  How the Government                                   How the ABC
  Home Saver Account                                  Saver Account works                                 helps you save                                       helps you save
  You should consider opening a                       How you can use the savings in a                    The	Government	boosts	your	savings	                  Your savings earn high interest
  First Home Saver Account if you                     First Home Saver Account                            with contributions and a low rate of tax            •	The	savings	in	your	ABC	First	Home	Saver	
•	only	want	to	use	your	savings	to	buy	or	          	 You	can	only	use	your	savings	in	three	ways         on the income your investment earns.                  Account	earn	a	high	variable	interest	rate,	
  build	your	first	home	in	Australia	to	live	in		                                                                                                               helping	you	to	get	your	first	home	quicker.
                                                    1	 to	buy	your	first	home                             When you put money into your account
  (‘buy	your	first	home’),	and
                                                                                                          the Government puts money in too                     See www.abc-bank.com.au/rates for our current
                                                    2	 as	money	you	can	add	into	super                                                                         interest rate.
•	are	able	to	save	at	least	$1,000	a	year		                                                             •	When	you	put	a	dollar	into	your	account,		
  ($20	a	week)	in	4	separate	financial	years		      3	 as	money	you	can	withdraw	as	a	lump	sum		          the	Government	will	contribute	17	cents.	
  –	they	do	not	need	to	be	in	a	row.                   if	you	are	aged	60	or	over.                                                                             Your savings will not go down
                                                                                                        •	Any	money	you	put	in	up	to	a	total	of	$5,000        •	The	ABC	First	Home	Saver	Account	is	a	bank	
  A financial year is from July 1 to June 30.
                                                      How to save with a First Home                       in a financial year	will	get	this	Government	         account	–	so	what	you	put	in,	stays	in.	And,	
  To open an account, you must                        Saver Account                                       contribution	–	anything	over	this	amount	             we	don’t	charge	any	day-to-day	fees	which	
                                                                                                          will	not.                                             can	also	reduce	your	savings.	
•	be	aged	18	or	over	and	under	65                   •	You	put	money	into	your	account	the	same	
                                                      way	you	would	make	deposits	into	a	normal	          For example, if you put $5,000 into your
•	have	a	tax	file	number                              bank	account.	You	can	do	this	at	any	time,	and	     account in one financial year, the Government        An example of how savings can grow
•	have	never	owned	a	home	in	Australia	that		                                                             will contribute $850 to your savings.               	 If	you	save	$100	a	week	for	4	years,	your	
                                                      for	as	long	as	you	need	to	save.	
  you	have	lived	in,	and                                                                                  If you are saving with other people that have         savings	could	grow	to	around	$27,000,	after	
                                                    •	You	cannot	salary	sacrifice	into	your	account.	     their own First Home Saver Accounts, each
•	have	never	opened	a	First	Home	Saver	                                                                                                                         Government	contributions	and	interest.
                                                                                                          person will receive Government contributions
  Account	before.                                   •	You	do	not	need	to	put	money	in	every	year	                                                              This is a general example based on an account
                                                                                                          on the money they put into their account.
                                                      –	but	your	account	will	only	get	Government	                                                             earning 5% interest (after tax and any fees) and
  You can open another First Home Saver Account
                                                      contributions	when	you	do.                        •	Government	contributions	are	paid	directly	          may be different from the actual interest the
  if you are transferring your savings from one
                                                                                                          into	your	First	Home	Saver	Account	after	you	        ABC Bank pays.
  First Home Saver Account to another – see         •	Once	the	total	amount	in	your	account	reaches	
  section 8.                                                                                              have	lodged	your	tax	return	and	ABC	has	told	
                                                      $75,000 –	including	Government	contributions	                                                            To find out how much you need to save use the
                                                                                                          the	Tax	Office	how	much	you	have	put	in.
                                                      and	income	from	investment	earnings	–	you	                                                               calculator at www.fido.gov.au/firsthomesaver
  If you are saving with others
                                                      cannot	put	any	more	money	into	your	account.        You are not taxed
•	each	person	must	open	their	own	individual	
  First	Home	Saver	Accounts	–	each	of	you	can	      •	You	can	keep	your	account	open	until	you	buy	     •	on	the	money	you	put	into	your	account	
  then	receive	the	benefits	of	having	a	First	        your	first	home,	or	turn	65.
                                                                                                        •	on	the	Government	contributions,	or	
  Home	Saver	Account.                                 When you turn 65 you must close your account
                                                      and withdraw all of your savings, or move it      •	when	you	withdraw	your	savings	for	
  You cannot open a joint account with
                                                      into super.                                         your	first	home.
  someone else.
                                                                                                          There is a low rate of tax on the
  If you are unsure about your eligibility
                                                                                                          interest your savings earn
  go to www.ato.gov.au
                                                                                                        •	 Any	income	that	your	investment	earns	will	
                                                                                                           be	taxed	at	a	low	rate	of	15%.	This	tax	will	be	
                                                                                                           deducted	from	your	account	and	paid	to	the	
                                                                                                           Tax	Office.
 5.                                                                                                         6.                                                 7.
 What happens if your                                                                                       Using your savings                                 The fees
 situation changes                                                                                          for your first home
 You should consider the following                    You haven’t put $1,000 a year into your               Withdrawing your savings                           We do not charge you any
 situations before choosing this account.             account in 4 separate financial years               •	You	can	only	withdraw	your	savings	to	buy	your	    day-to-day fees on your account.
                                                      (they do not need to be in a row) and                 first	home	after	you	have	put	at	least	$1,000	a	   There are no general fees that apply to these
 You decide not to buy a first home                   you want to close your account                        year	into	your	account	in	4	separate	financial	    types of account. However, we will deduct a
	 If	this	happens	you	can	choose	to	                 	 You	can	choose	to	                                   years	(they	do	not	need	to	be	in	a	row).           transfer fee of $30 from your account if you
                                                                                                                                                               move your savings into super.
•	move	your	savings	into	super,	or                   •	move	your	savings	into	super,	or                   •	If	you	are	buying	your	first	home	with	other	
•	withdraw	your	savings	as	a	lump	sum	if	you	                                                                                                                  For a list of other fees that apply to special
                                                     •	withdraw	your	savings	if	you	are	60	or	over.         people	that	have	First	Home	Saver	Accounts	
                                                                                                                                                               situations and transactions (e.g over-the-
  are	aged	60	or	over.                                                                                      you	can	withdraw	the	savings	from	each	
                                                                                                                                                               counter deposits) go to www.abc.com.au/fees
                                                      You move overseas                                     account	if	just	one	of	you	has	put	$1,000	into	
 You want to buy your first home before              	 You	can	keep	your	account	open,	and	                 your	account	in	4	separate	financial	years.
 you have put $1,000 into your account                 continue	to	put	money	into	your	account	
 in 4 separate financial years (they do                –	but,	you	won’t	receive	any	Government	             When you’re ready to use your
 not need to be in a row)                              contributions	if	you	are	overseas	for	an	entire	     savings for your first home
•	You	cannot	use	the	savings	in	your	account	if	       financial	year.	                                   1	 Apply	to	ABC	to	withdraw	all	of	the	money	
  you	are	buying	your	first	home	on	your	own.                                                                from	your	First	Home	Saver	Account.
•	You	can	use	the	savings	in	your	account	if	you	     You start living in a home you own
                                                                                                            To check that you meet the withdrawal rules
  are	buying	your	home	with	someone	else	who	        	 If	you	start	living	in	a	home	that	you	own,	         go to www.ato.gov.au
  has	put	$1,000	into	their	account	in	4	separate	     you	will	no	longer	be	eligible	to	have	an	
  financial	years	(see section 6).	                    account.	You	must	tell	the	ABC	Bank	               2	 Close	your	First	Home	Saver	Account.
                                                       and	close	your	account	within	30	days,	              Generally, you will not be able to open another
 You don’t have any money to put                       or	penalties	will	apply.	                            First Home Saver Account.
 into your account                                   	 When	you	close	your	account	you	can	either
	 You	do	not	need	to	put	money	into	your	
                                                                                                            You must live in your first home
                                                     •	move	your	savings	into	super,	or                     for at least 6 months
  account	every	year.	You	can	choose	to	
                                                     •	withdraw	your	savings	as	a	lump	sum	if	you	        •	within	12	months	of	settlement,	or	
•	start	saving	again	when	you	can                      are	aged	60	or	over.
                                                                                                          •	on	completion	of	building	construction.
•	move	your	savings	into	super,	or
•	withdraw	your	savings	as	a	lump	sum	if	you	         You experience hardship
                                                                                                            Help with your mortgage
  are	aged	60	or	over.                               	 After	moving	your	savings	into	super	you	
                                                                                                          	 ABC	Bank	gives	First	Home	Saver	Account	
                                                       may	apply	to	access	your	super	under	the	
 continued next column �                                                                                    holders	a	discount	of	0.5%	off	the	standard	
                                                       early	release	provisions.	These	include	severe	
                                                                                                            variable	interest	rate.
                                                       financial	hardship,	permanent	disability	or	on	
                                                       specified	compassionate	grounds.
  8.                                                  9.
  How to open                                         Where to go for
  an account                                          more information                                   About us
  To open an account                                  ABC Bank enquiries                                 This Product Disclosure Statement is issued by:

1	 Fill	out	the	application	form.                     call 1800 111 222                                  ABC Bank Pty Ltd
                                                      visit www.abc-bank.com.au/fhsa                     Level 67, 120 Collins Street
2	Make	an	initial	deposit	into	your	account.	                                                            Melbourne VIC 3000
                                                      mail PO	Box	555	Sydney	2001
  You cannot open a joint account with                                                                   ABN 213 645 447 884
  someone else.                                                                                          ACN 645 447 884
                                                      First Home Saver Account enquiries                 AFSL 123456
  If you change your mind
                                                      Information about how First Home Saver
	 We	provide	a	cooling-off	period	that	lets	you	      Accounts work, eligibility, fees and taxes, and    ABC Bank is Australia’s sixth largest bank, and
  close	your	First	Home	Saver	Account	within	         links to savings calculators and other useful      a major home lender. We have been providing
  14	days,	with	a	refund	of	your	deposit.             online tools.                                      professional and personal banking services to
                                                      visit www.ato.gov.au                               Australians for 90 years.
•	You	will	need	to	tell	us	in	writing,	by	email	or	
  mail,	within	14	days	of	opening	the	account.                                                           ABC Bank is part of ABC Bank International
                                                                                                         Holdings Ltd.
•	We	will	refund	your	deposit,	minus	any	taxes	       Complaints
  we	have	paid,	and	any	administration	costs.                                                            As a member of the Australian Bankers
                                                      If you have a complaint call the number below,
                                                                                                         Association, we are bound by the standards
                                                      or write to us. If you are not satisfied with our
  You can transfer your savings to another                                                               set by the association in relation to informing
                                                      complaint resolution process, you can take the
  First Home Saver Account provider                                                                      our customers.
                                                      case to the Financial Ombudsman Service (FOS).
  If you do, we will transfer the savings in your     call 1300 780 808                                  For contact information see section 9.
  account to your new provider, minus any costs.
                                                      visit www.bfso.org.au
  You must close your old account as soon as your
  savings have been transferred.

								
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