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.
Pages to are hidden for
"ABC FIRST HOME SAVER ACCOUNT"Please download to view full document