An ASP account (home savings account) is a savings account designed for first-time home buyers. When you save in an ASP account, you can enjoy peace of mind knowing how much interest you will earn on your savings regardless of any market movements.
As an ASP saver, you earn 1% in tax-free deposit interest on your savings as well as 4% in tax-free bonus interest which is paid for the year you open the account and for the next five years when you eventually take out a loan to buy a home. You can use the interest you earn to pay part of your new home!
Once the savings in your ASP account cover at least 10% of the price of the home you’re interested in, you can apply for an ASP loan to buy the home. If you’re planning to buy a home together with someone else, the savings in your ASP account need to cover 10% of your share of the home. ASP loans come with many perks, including a free state guarantee.
Who is an ASP account suitable for?
You may be eligible for an ASP account if you:
- are at least 15 years old
- have never bought 50% or more of any property
- want to save money for your first home.
If you are aged 15 to 17, you can only deposit money into your ASP account that you have earned yourself from working or funds that your guardian has made available to you.
How does an ASP account work?
An ASP account allows you to save money at your own pace – you can increase or decrease the amount you deposit depending on what you can afford or take a break from saving altogether if you need to. You can apply for an ASP loan once you have made 20 monthly deposits into your ASP account, each between 50 and 1,500 euros.
In practice, this means that ASP saving will take at least 20 months, but the deposits do not need to be made in consecutive months. There’s no upper limit for how long you can save but you must make your first deposit when opening the ASP account.
How much interest is paid on the savings in an ASP account?
If you save regularly and deposit the majority of your savings in the year you open the ASP account and the next five years, you can earn up to 5% in tax-free interest on your savings.
- You earn 1% in annual deposit interest on the savings you have in your ASP account. The deposit interest is added to your savings annually on 31 December and will appear in your account on the next banking day.
- What’s more, you earn 4% in bonus interest on your savings, which is paid in arrears once you have made 20 approved monthly deposits and take out an ASP loan or a regular home loan to buy a home. You will earn bonus interest for the year you begin saving in an ASP account and for the next five calendar years.
- Any interest paid on your savings in an ASP account is tax-free so you don’t have to pay taxes on the interest you earn as long as you use your ASP savings to buy your first home and take out a home loan.
Can I have more than one ASP account?
You can only have one ASP account but it’s possible to transfer your account from one bank to another. If you’re saving money for a home together with someone else, you can each have your own ASP accounts.
Can I close my ASP account?
If you decide you no longer need the savings in your ASP account for buying your first home, you are free to close the account and use your savings any way you wish. However, please note that in this case a tax at source of 30% will be charged on the deposit interest paid on your savings and no bonus interest will be paid.
What’s the difference between an ASP loan and a regular home loan?
An ASP loan offers benefits that are not available with a standard home loan. ASP loans come with a free state guarantee and free interest subsidy for the first 10 years.
Read more about ASP loans
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