Banks scramble to attract first home buyers

Banks are fighting among themselves to offer the best savings interest rates on new first home savers accounts (FHSAs).

The Sydney Morning Herald, which remarks that home ownership has just got a lot easier with the unveiling of the savings accounts, claimed that AMP Banking is offering the most fiercely competitive deals.

AMP is offering first home buyers special savings interest rates of eight per cent until the start of next year and promises an ongoing rate of seven per cent.

Meanwhile, ANZ is only fractionally behind, with their savings accounts offering 6.99 per cent for those first home buyers who can make monthly deposits.

But overall, Hunter United offers the highest long term returns, with the credit union offering savings interest rates of 7.07 per cent.

The FHSA was launched by the Treasury late last month and is available to all first home buyers over the age of 18.

Under the terms of the FHSA, the government will contribute 17 per cent on the first $5,000 of deposits made into the savings accounts each year.ADNFCR-1761-ID-18821984-ADNFCR