One of the easiest ways to accumulate and grow your money is the LHV Growth Account. From now on, LHV customers will be able to transfer the money they have accumulated in their Growth Account directly to their home deposit.
Buying your own home is one of the most important decisions and it requires thorough preparation. One of the main prerequisites before applying for a home loan is to raise the money needed for the deposit. LHV has now made this very convenient for its clients by allowing them to transfer the money they have accumulated in their LHV Growth Account directly to the deposit for their new home without any fees.
Moonika Maaring, Head of Retail Banking at LHV, said that the bank's aim is to encourage people to save for their goals and to make it easier for them to raise the deposit needed to buy a home.
“We have encouraged people to save and invest, and have made it available to everyone at LHV. The LHV Growth Account is designed for long-term accumulation, and we can see that it is becoming more and more popular every year. Young investors and parents who want to save for their child's future have found their way to the Growth Account. If at some point, the question of a home purchase comes into being and a deposit is needed, the amount accumulated in the Growth Account over the years can now be used for part or all of the deposit for the home,” said Maaring, describing the new solution.
“For example, for an apartment that costs EUR 100,000, a minimum deposit of 10%, i.e. EUR 10,000, is required. The Growth Account can be of great help in meeting this,” Maaring added.
For example, by directing € 60 a month for 10 years to a savings account, € 7,200 would be accumulated. However, if you invest this amount through a Growth Account and calculate an average rate of return of 8%, it would grow to more than € 11,000 in the same time and could be used to pay for your first home in a carefree way.
Existing Growth Account holders who have already accumulated money over the years will also have the opportunity to use it as a deposit, if they wish. It is worth noting that the assets of a Growth Account can also only be part of the contribution.
To do this, the client does not need to activate anything separately, but when signing a home loan agreement with LHV Bank, the client can notify the bank of their wish to use the funds accumulated in the Growth Account as a contribution. In such a case, the bank will sell the Growth Account units for the desired amount without deducting the normal sales charge, and transfer the money to your bank account.
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, and LHV Kindlustus. LHV employs over 620 people. LHV’s banking services are used by 290,000 clients, the pension funds managed by LHV have 174,000 active clients, and LHV Kindlustus protects a total of 132,000 clients. LHV’s UK branch offers banking infrastructure to 160 international financial services companies, via which LHV’s payment services reach clients around the world.All news