First Home Steps Online

A regular saver account for First Time Buyers, if you are looking to start saving to buy your first home, our First Home Steps Online may be right for you. 

  • Save from £1 to £25,000, maximum deposit of £1,500 per calendar month
  • Interest is calculated on your daily balance and paid annually
  • Three withdrawals permitted per calendar year 
  • This account can only be opened by First Time Buyers
  Balance Gross* p.a. AER†
First Home Steps Online (Annual - Tier 1) £1 - £2,500 0.80% 0.80% (variable)
First Home Steps Online (Annual - Tier 2) £2,501 - £7,500 1.00% 1.00% (variable)
First Home Steps Online (Annual - Tier 3) £7,501 - £25,000 1.50% 1.50% (variable)

Please read the summary box below 

Summary Box
  Summary Box
Account name First Home Steps Online
What is the interest rate?
Gross* p.a./ AER† (Variable)
£1 - £2,500
£2,501 - £7,500
£7,501 - £25,000

Interest is calculated on your daily balance and paid annually on 1st January every year. For balances eligible for the higher rates of interest, the higher rate will apply to the total balance when that day’s interest is accrued.
Can Principality change the interest rate?
  • Yes, variable account rates could increase or decrease.
  • Customers will be given personal notification of any material reduction in interest rates a minimum of 14 days before the change takes effect.
  • To understand why rates may be reduced please refer to our Savings Terms and Conditions.
What would the estimated balance be after 12 months based on a £4,850 or £18,000 deposit? Based on the assumption that no withdrawals are made and the rate does not change:

£4,877.93 (based on an initial deposit of £1,000 made at account opening, followed by 11 monthly deposits of £350 made on the same day each calendar month).

£18,137.23 (based on 12 monthly deposits of £1,500, the first being made at account opening and the remaining 11 on the same day each calendar month).
How do I open and manage my account?
  • This account can only be opened by individuals who do not, or have not previously, owned a property.
  • You must be aged 18 or over and a UK resident for tax purposes to open and operate this account.
  • You need to have a current account in your name with a UK bank or building society to be able to manage payments in and out of your account.
  • The account can only be opened in your own name and cannot be held jointly with someone else.
  • The offer is limited to one account per customer.
  • Open and manage your account online only.
  • Multiple deposits can be made up to the maximum monthly deposit of £1,500.
  • Minimum balance is £1; the overall maximum balance is £25,000. The minimum balance must be maintained to operate the account. If the maximum balance is reached, only accrued interest can be added to the account.
  • Whilst this is a regular saver account, you are not obliged to pay into the account every month.
  • You have 5 business days from the account opening date in which to make your initial deposit. If you have not made your initial deposit in this time, your account will be closed.
  • On the fifth anniversary of opening your account, it will revert to our Maturity e-Saver (or nearest equivalent then available) and then the terms and conditions for that account will apply going forward. We will notify you before this happens.
Can I withdraw money?
  • Yes, you can make three withdrawals per calendar year, subject to the minimum balance.
  • Closure is permitted and will count as a withdrawal.
  • Please note that if you make a withdrawal that reduces your balance to a lower interest rate tier, we will not notify you of this.
Additional information
  • If you complete on a Principality Building Society residential mortgage on your first home (please note that the property must be in England or Wales) after 12 months and within 5 years of opening the account, you may be eligible for a Celebratory Bonus of £500 (per mortgage) which will be paid directly into your First Home Steps Savings Account upon completion of the mortgage. Your account must remain open with at least the minimum balance for the Celebratory Bonus to be paid. Full terms and conditions for the Celebratory Bonus are available below.
  • Service charges and costs may apply to your account. These are outlined in our Tariff of Charges.
  • In certain circumstances we may refuse an instruction to operate an account. These circumstances are outlined in the Savings Terms and Conditions.
  • If the total amount of interest you earn exceeds your Personal Savings Allowance then you may have to pay tax directly to HMRC. For more information visit and search ‘Personal Savings Allowance’.
  • Rates correct as at 21/01/2021.

Before you apply, please read the First Home Steps Online 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 the interest you earn is exempt from UK Income Tax and Capital Gains Tax. Tax treatment depends on your individual circumstances and may not be maintained in future.

* Gross is the contractual rate of interest payable before the deduction of income tax at the rate specified by law.

† AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest were paid and compounded once each year.

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