First Home Steps Online, offers a tiered interest rate with three withdrawals per year and is targeted at those customers who are saving for a deposit to get onto the property ladder.

The building society has also launched an online hub to help first-time buyers through the steps of buying their first home.

The platform contains a range of articles for prospective first time buyers, with guidance tailored to each stage of the buying process, including saving, searching for a home and buying.

There’s also an accompanying app, First Home Steps App, which contains a range of tools, including a personalised budget plan, help in exploring the different types of saving accounts, understanding credit score and finding a suitable first home mortgage.

Julie-Ann Haines, chief executive officer at Principality Building Society, said: “Our ethos as a member-owned organisation is to help people to prosper in their homes and we realise that getting on the housing ladder for the first time can be challenging in today’s climate.

“The First Home Steps account will support savers in reaching a savings goal, whilst also giving them flexibility when they need it.

“The online hub and app will also provide prospective first time buyers with advice, information and useful tools to help them feel more confident and informed on their home ownership journey.’’

Savers who eventually take out a mortgage with Principality directly can also benefit from the cash bonus but is only paid if the customer meets certain criteria, while the Society’s mortgage lending is subject to its normal eligibility criteria.

Available for the first time online, previously offered as a branch only product, the First Home Steps regular saver account offers savers a tiered interest rate between 0.80% and 1.50%.

The account, with a maximum balance of £25,000, gives flexibility to savers including allowing multiple deposits up to a maximum £1,500 per calendar month and three withdrawals per calendar year, without loss of interest.