High interest savings accounts ideal for putting cash aside for property


Monday 24 October 2011

Aussies hoping to one day get a home loan with a view to eventually owning a property have been advised to consider opening a high interest savings account.

Savings accounts 'are useful when putting funds aside for a deposit'

Mortgage Choice suggested that establishing an auto-transfer from salary accounts could help individuals to set aside enough funds to cover their purchase.

Kristy Sheppard, spokesperson for the firm, commented: "Rising rental payments and other living expenses are adding financial pressure to many aspiring buyers trying to save for a deposit and associated purchase costs."

The company noted that careful planning is needed by those who plan to sell assets to build the necessary deposit.

It observed that most lenders require borrowers to have a savings deposit that has been held for at least three successive months.

Savings accounts can also be put to other purposes, as a recent survey by Dun & Bradstreet revealed that nearly two-thirds of people in the country plan to finance Christmas using funds put aside in this way.

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