Saving for Your First Home: Keep Your Deposit Safe and Growing

Protecting Your Home Deposit

Saving $80,000 to $150,000 for a home deposit takes years of discipline. The last thing you need is investment risk threatening your property dreams. Government-backed term deposits provide security and strong growth.

Why Term Deposits for Home Savings?

• Zero risk: Your principal cannot decrease
• Government guarantee: Up to $250,000 protected
• Strong returns: Current rates of 7-8.5% P.A.
• Predictable growth: Calculate exactly when you'll reach your goal

The Risky Alternatives

Other options come with dangers:

• Shares: Could fall 20-30% right when you need funds
• Crypto: Extreme volatility inappropriate for saving goals
• Property ETFs: Subject to market fluctuations
• Savings accounts: Safe but earn half the return

Accelerating Your Savings

Compare term deposit returns to savings accounts:

• $50,000 in savings at 3%: $1,500/year interest
• $50,000 in term deposit at 8%: $4,000/year interest
• Extra earnings: $2,500/year = months faster to your goal

Strategic Term Selection

Match your terms to your timeline:

• 2+ years to purchase: Use 12-24 month terms for best rates
• 6-12 months out: Shorter terms for flexibility
• Under 6 months: High-interest savings for immediate access

First Home Super Saver Scheme

Combine term deposits with FHSSS:

• Contribute to super (up to $15,000/year)
• Withdraw up to $50,000 for first home
• Keep remaining savings in term deposits
• Tax advantages boost your savings further

Stay Focused on the Goal

Property prices can feel discouraging, but consistent saving in government-backed deposits will get you there. Focus on what you can control: saving regularly and earning the best secure rate available.

Your dream home is worth protecting. Don't gamble with your deposit.