The best deposit interest and 7 other good reasons to save into an ASP account
1. The interest paid on an ASP account can be as high as 5%.
The deposit interest paid on an ASP account is 1%. In addition, you will get an additional interest of 4% for the first five years. This is higher than interest paid on any other deposit account. The interest is exempt from tax. The condition for the tax-exemption and the additional interest is that the savings are used for buying a home.
2. You will be granted an interest subsidy from the state free of charge for 10 years.
The interest subsidy will hedge you against rising interest rates. If the interest rate level rose, the state would pay 70% of the interest exceeding 3.8%. One day, this may prove more valuable than you can imagine.
3. You will get a free guarantee from the state
When you have saved 10% of the purchase price of the home, you do not need other security for your loan than your home. For example, your parents do not need to guarantee the loan. The state guarantee only concerns the ASP loan, not a possible additional loan.
4. Customers aged 15 - 39 can open an ASP account
Age is not a problem. You can open an ASP account when you are 15 and start saving from your first summer job earnings. You can still open an ASP account at the age of 39, as you can draw down the loan even after you have turned 40.
5. You can deposit money received as a gift to your ASP account
When you have reached the age of 18, you parents or relatives can support your home-buying project. If you have received larger donations, deposit them in your ASP account during the first 5 years of saving. This way you will get the maximum additional interest and you benefit the most. Please note, however, that money you deposit before you turn 18 must be money you have earned yourself.
6. You can buy your first home alone or with a partner.
With the help of an ASP account, you can buy your own home by saving only 10% of its price. You can buy the home alone or together with someone else, as long as your share of the home is at least 50%. Both of you can have ASP accounts of your own in which you save, and you can take out the loan jointly or separately.
7. The savings period is up to you
The minimum savings period is 2 years, which means you can buy your own home quite quickly. The precondition is that you make a deposit of 150 to 3,000 euros at a time in at least eight quarters and that you manage to save at least 10% of the home’s purchase price. There is no actual maximum savings period. You can open an ASP account when you reach the age of 15 and save gradually.
8. You will not have to pay asset transfer tax
As a first-time home buyer, you do not have to pay asset transfer tax, which is 2–4% of the home's price. For example, if you buy an apartment worth 100,000 euros you will save 2,000 euros. This applies to all first-time home buyers, not just ASP savers. Check from the tax authority's website that you fulfil the conditions.