First Home Steps Online (Issue 3)

Our First Home Steps Online account is a regular saver account for First Time Buyers. If you are starting to save to buy your first home and want to manage your account online, our First Home Steps Online account may be right for you.

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First Home Steps Online Issue 3 £1 - £25,000 5.25% 5.25% (variable)
  • Open online
  • Pay in up to £1,500 per month, in one or more payments
  • You don't have to pay money in every month
  • Once you have saved £25,000 you can't put any more money in
  • Interest is calculated on the money in the account each day and paid each year on 1 January
  • You can take money out three times every calendar year
  • You can close the account, but closure counts as a withdrawal
  • We can stop accepting applications at any time.
  • This account is only available to First Time Buyers.

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What is the interest rate? 5.25% Gross* each year/AER† (Variable)

(See the meanings of ‘Gross’ and ‘AER’ below this summary box.)

Interest is calculated each day on the money in the account and paid on 1st January every year.
Can Principality change the interest rate?
  • Yes, variable interest rates can go up or down.
  • If you have £100 or more in the account, we will give notice of any reduction in interest rates at least 14 days before the change takes effect.
  • For more information, see the section Changes to interest rates in our Savings Terms and Conditions.
What would the estimated balance be after 12 months based on a £4,850 or £18,000 deposit? This is based on you making the first payment on the date the account was opened, no money being taken out of the account and no change to the interest rate:

£9,255.94 This is based on you paying in £750 a month for 12 months.

£18,511.88 This is based on you paying in £1,500 a month for 12 months
How do I open and manage my account?
  • You can only open this account if you do not own or have not previously owned a property.
  • You must be 18 or over and a UK resident (see your First Home Steps Online account terms).
  • You must open the account online.
  • You can’t have more than one of this issue number of First Home Steps Online in your name. This cannot be a joint account.
  • You have to link your First Home Steps Online to a current account in your name with another UK bank or building society in order to move money when you need it.
  • You must keep at least £1 (the minimum balance) in the account.
  • The most you can pay in each month is £1,500, in one or more payments.
  • You do not have to make payments into the account every month.
  • If the account reaches £25,000, you cannot pay any more money in.
  • You must manage the account using the online service, Your Account, at
Can I withdraw money?
  • Yes, you can make three withdrawals from the account every calender year.
  • Closing the account counts as a withdrawal.
  • On the fifth anniversary of opening the account, we will move your money to our Maturity e-Saver or the nearest equivalent we offer at the time.
Additional information
  • You may be eligible for a Celebratory Bonus of £500 if:

    • you complete on a Principality Building Society direct residential mortgage on your first home in England or Wales, and
    • your First Home Steps account has been open between 1 and 5 years, and
    • your account remains open.
  • Service charges and costs may apply to the account. These are set out in our Tariff of Charges.
  • In certain circumstances we may refuse an instruction for using an account. These circumstances are set out in our Savings Terms and Conditions.
  • If the total amount of interest you earn is more than your tax-free Personal Savings Allowance, you may have to pay tax directly to HM Revenue & Customs (HMRC). For more information, visit and search Personal Savings Allowance.
  • The interest rates quoted above were correct on 26/10/2023.

Before you apply, please read the First Home Steps Online Issue 3 Account Terms & Conditions

Please click below to confirm that: You are a first time buyer and do not own or have not previously owned a property. As you will be bound by the Account Terms and your information is held in accordance with our privacy policy, you should read, print and save the below documents for your records. If you have any queries relating to them please contact us for further information.

Please also read the following:

We are covered by the FSCS

Find out more about what it means for you.

^ Tax-free means UK Income Tax and Capital Gains Tax is not deducted from the interest you earn. This depends on your individual circumstances, and may change in future.

* Gross interest is the rate of interest before income tax is deducted at the rate set by law.

† AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest were paid once each year on the whole balance, including previous interest payments.