How the account works

ME Bank's First Home Saver Account is a savings vehicle to help boost your deposit for your first home. Here you will find some important information about eligibility requirements and how you can use the account to maximise your savings.

You can open an account

You can open an account if you:

  • are aged over 18 and under 65 years;
  • have never purchased or built a home in Australia that you have lived in;
  • have not previously had a First Home Saver Account†; and
  • provide your tax file number.

If you are unsure about your eligibility, visit www.ato.gov.au.

How the Government helps you save

When you put money into your account, the Government puts in money too!

The Government will contribute 17 cents for every dollar you put into your account, up to the first $5,000 each financial year.

For example, if you deposit $5,000 in your account in one financial year, the Government will contribute $850.

Once your account reaches $75,000 (this maximum amount is indexed each year) you are no longer able to make personal contributions. However, if you are not ready to purchase a home, your balance will continue to earn a high rate of interest.

There is no minimum deposit to keep the account open, however, you will not be able to withdraw your balance unless you have deposited a minimum of $1,000 per year in at least four financial years.

There are also tax advantages you’ll benefit from. There is no tax applied:

  • on the money you deposit into the account;
  • on the Government contributions you receive; or
  • when you withdraw your savings to use as a deposit on your first home.

The interest you earn from ME Bank is taxed at a low rate of 15.00%.

Depositing money into your account

The easiest way to increase your deposit is to set up a Regular Savings Plan through Internet Banking. Simply enter your nominated account, the amount you want to save and the deposit frequency, which can be weekly, fortnightly or monthly.

If you decide to travel or live overseas while you are saving for your first home, you can still make regular contributions. If you are out of the country for 12 months or more, you will not receive any Government contributions during that time, but you will still earn high interest on the entire balance from ME Bank. The Government contributions will recommence once you return home and start saving again.

Withdrawing your money

You can withdraw your savings to buy your first home once you have contributed a minimum of $1,000 each year over four separate financial years. These don’t need to be consecutive years.

When you are ready to use your money, the full amount must be withdrawn and the account will be closed.

Once you have bought your house, you must live in your new home for at least six months within 12 months of settlement, or if it’s a newly built home, within 12 months of completion.

If you decide not to purchase a home with the savings in your First Home Saver Account you can:

  • transfer the money to your superannuation account; or
  • withdraw the money as a lump sum if you are aged 60 or over.