First Home Steps Online

4.85% Gross* each year/AER† (Variable) 

Interest is calculated each day on the money in the account and paid on 1 January every year. 

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. 

This is based on: 

• You making the first payment on the date the account was opened. 
• No money being taken out of the account. 
• No change to the interest rate. 

This calculation is for guidance only, to show you what a future balance could look like. It does not consider your individual circumstances. 

• 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 must manage the account using a secure online profile with Principality. 
• 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. 
• If the account reaches £25,000, you cannot pay any more money in. 
• You do not have to make payments into the account every month. 
• The account will come to an end (mature) after five years on the anniversary of the account opening.

Yes, you can make three withdrawals from the account every calendar 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.

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. 

See your First Home Steps Online account terms for further information.

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 and Customs (HMRC). For more information, visit gov.uk. 

The interest rates quoted above were correct on 05/12/2024.