Up to £1,000 can be saved in the account every month for up to three years and, after at least six months of saving, a £500 bonus will be paid to savers who use any residential owner Occupier Coventry Building Society mortgage to buy their first-home.

The First Home Saver account can be opened online, over the phone or in a branch with just £1 and there’s no minimum monthly limit so savers can build a deposit at their own pace.

Matthew Carter, head of savings and mortgages at Coventry Building Society, said: “We want to help more people to realise their dreams of buying their first home and our First Home Saver account rewards the huge effort people have to make to save for their first step onto the property ladder.

“People building up their first home deposit are among the best savers out there. They have to squirrel away thousands of pounds, often from scratch, while making sacrifices in many other areas of their lives. The reward for saving for a first deposit is great and a £500 boost could make a big difference to those starting out as homeowners for the first time.

“This account caters for the bank of mum and dad too. Parents will often help their kids get on the property ladder and they can receive the £500 bonus too if their child buys their first home with us.

“Even without the bonus, the First Home Saver has a competitive interest rate and although it is a regular saver account it gives customers the flexibility to change the amount they pay in, or withdraw from the account as needed.”