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First Home Steps Account

Issue 5

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Is this account right for me?

There are a few reasons why this account could suit you. This account is...

For the ones who
  • Are saving a deposit for their first home
  • Want to save regularly
  • Are happy with a limited number of withdrawals
Not for the ones who
  • Want to make unlimited withdrawals 
  • Want to pay in more than £1,000 each month
  • Want the certainty of a fixed rate

Summary box

This summary contains key information about our First Home Steps Account. You should read it carefully before applying.

4.40% 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. 

Based on a £9,000 or £12,000 deposit 

Estimated balance

Based on you paying in £750 a month for 12 months. 

£9,213.37

Based on you paying in £1,000 a month for 12 months. 

£12,284.49

  • 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 Account account terms). 
  • You can't have more than one of this issue number of the First Home Steps Account in your name.
  • You can open the account online, in branch or at an agency.
  • Accounts opened in branch can be a joint account. Accounts opened online cannot be a joint account.
  • If you open the account in branch, you can manage the account in branch, at an agency, by post, or by using a secure online profile with Principality.
  • If you open your account online you have to link the account 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 manage your account using a secure online profile with Principality. 
  • You must keep at least £1 (the minimum balance) in the account. 
  • The most you can pay in each month is £1,000, in one or more payments. 
  • If the account reaches £50,000, you cannot pay any more money in. 
  • You do not have to make payments into the account every month. 

Yes, you can make three withdrawals from the account every calendar year. Closing the account counts as a withdrawal. 

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 for a minimum of 12 months, and 
  • your account remains open. 

See your First Home Steps 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 19/06/2025. 

Downloadable documents

Please take some time to review this important information. We recommend you download these and keep copies somewhere safe; you may choose to print them.

Start saving today

Let's get you saving. Apply online or in branch. When you apply online you can:

  • Open your account in around 10 minutes
  • Fund your account straight away
  • Name your account and set a goal to work towards
Book an appointment

Additional information

*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 was paid and compounded once each year.
^Tax-free means the interest you earn isn't subject to UK Income Tax and Capital Gains Tax. Tax treatment depends on your individual circumstances and could change in future.

 

How we work out what you could save

This figure is dynamic, based on the information you've given us in the search section about your starting balance and any monthly contributions you want to make.

We make a few assumptions to calculate your result:

  • you make your initial deposit on today's date
  • any regular monthly deposits are made on the same day of the month the initial deposit is made
  • for ISAs you can't deposit more than the cash ISA limit for the current tax year

This calculation is for guidance only, to show you what a future balance could look like.