Principality Building Society has launched an online savings account designed to help first-time buyers onto the property ladder.

Its First Home Steps Online account offers a tiered interest rate, between 0.80 per cent and 1.50 per cent, with up to three withdrawals per year without loss of interest.

The UK’s sixth-largest mutual has also launched a First Home Steps Online hub to guide first-time buyers through the process of buying their first home.

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

The accompanying app also 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.

It adds the account comes with is a £500 cash bonus for customers who go on to take out a mortgage directly with the building society.

The Cardiff-based lender says the account allows multiple deposits up to a maximum of £1,500 per calendar month, and comes with a maximum balance of £25,000.

Principality Building Society chief executive Julie-Ann Haines says: “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.”

Haines adds: “The First Home Steps account will support savers in reaching a savings goal, while 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.’’

The account was previously available in person only at the society’s 53 branches and 16 agencies in Wales and the borders.