First Home Steps offers a tiered interest rate and three withdrawals per year with minimum balance of £1 up to £25,000. Additionally, savers will receive a £500 cash bonus if they take out a mortgage with Principality directly

Product Interest Rates:

£1-£2,500 – 1.00% gross pa/AER (variable)

£2,501-£7,500 – 1.50% gross pa/AER (variable)

£7,501-£25,000 – 2.00% gross pa

Available in branch and agency, the First Home Steps regular saver offers savers a tiered interest rate between 1-2%. The account gives flexibility to savers, including allowing multiple deposits of up to £1,500 per calendar month and three withdrawals per year, without penalties.

Julie-Ann Haines, chief customer officer at Principality Building Society said: “Our ethos as a mutual building society is to help people to prosper in their homes and we realise that it is getting more difficult for young people to save and get into their first home.

“First Home Steps will support savers in reaching the goal of homeownership, whilst also giving them flexibility when they need it.”