House Deposit Savings Account.
house deposit savings account
Saving for a deposit on your first home?
If you’re trying to save a deposit for your home, it can feel like an uphill battle.
We understand that everyone needs a bit of help sometimes. That’s why we’ve launched an account designed specifically for people saving for a home.
Our new House Deposit Savings Account could help you get on the housing ladder. It’s a savings account that rewards you twice, with bonus interest payments for regular savers. You’ll also receive a voucher for a well-known retailer to help you get set up. What’s not to like about that?
Example.
We’ll pay a variable rate of interest on your total balance.
You’ll also receive a 1.5% fixed bonus on deposits made during the current anniversary year (not on your total balance). The bonus resets at the end of each anniversary year, ready for your next year’s deposits.
This example assumes continuous monthly contributions over 5 years, with no missed payments or withdrawals. Years 3 and 4 are not shown but the same contributions are assumed to continue during this period.
| Year | Total new funds saved | Balance from previous year | Interest earned | Balance at the end of the year |
|---|---|---|---|---|
1 | £6,000 (£500 per month) | N/A | Standard variable interest (assumed 3.25%): £105.74 Bonus interest (8%): £48.80 Total interest: £154.54 | £6,154.54 |
2 | £6,000 (£500 per month) | £6,154.54 | Standard variable interest (assumed 3.25%): £305.76 Bonus interest (1.5%): £48.80 Total interest: £354.56 | £12,509.10 |
5 | £6,000 (£500 per month) | £25,844.51 | Standard variable interest (assumed 3.25%): £945.69 Bonus interest (1.5): £48.80 Total interest: £994.49 | £32,839.00 |
Account Name
Rate
Apply by
Withdrawals
Balance Restrictions
Type
Full Details
House Deposit Savings Account
Save towards a deposit for your first or next home. Can be opened by those aged 18-35.
Variable
Save towards a deposit for your first or next home. Can be opened by those aged 18-35.
Rate
3.25%
Gross* /AER**
Access Type
Branch, post
Withdrawals
Unlimited withdrawals
Minimum Balance
£10 – £1,000 Each Month
Variable
*Gross
The rate paid with no income tax deducted. For more information on your Personal Savings Allowance, visit www.gov.uk.
**AER (Annual Equivalent Rate)
A rate which illustrates what the gross rate would be if the interest was paid and added once each year.
house deposit savings account
Get started.
If our House Deposit Savings Account sounds appealing to you, contact us today to find out more. Make sure you check out the product page to view the full terms and conditions.
FAQs
Frequently asked questions.
In summary, this is how it works:
- You can open a House Deposit Savings Account if you’re aged 18-35.
- You can add money to your account on a monthly basis.
- You can decide to save anywhere from £10 – £1,000 per month.
- The maximum balance you can have in your account is £36,000, even if it’s a joint account.
- We’ll pay you a variable rate of interest on your overall balance.
- You’ll also receive a conditional fixed bonus rate of interest on any deposits made during the current anniversary year (so not the overall balance). The bonus resets to zero after each anniversary, ready for your next year’s deposits.
- You can close the account when you want, but it automatically matures on its 10-year anniversary. That means you’ll need to decide what to do with the balance after 10 years.
- You can make one penalty-free withdrawal per year, to help with any unexpected life expenses.
- It’s fine to withdraw money more than once a year, but you would forfeit your annual bonus interest rate.
Yes, is the short answer! You may have heard of Lifetime ISAs (LISAs). And they’re a great product. Our new House Deposit Savings Account is a bit different though.
If you’ve already maxed out your LISA limit but want to save more, our account could be a great way to continue saving. You may even decide it works better for you than a LISA. But of course, whatever you decide to do, consider your options carefully.
In addition to the interest you’ll earn on your savings, you’ll also receive a retail voucher worth £500 if you go on to take out a mortgage with us. And because we want you to have your dream home, if you buy a house but don’t take a mortgage with us, we’ll still give you a £150 voucher. You can choose your voucher from the list of retailers included in the product terms & conditions.
Yes, you can. While this account can help you save for a deposit on your first home, you may have owned a home in the past, but don’t anymore, so are looking to get back on the ladder.
Yes, to keep things flexible, you can open it by yourself or with someone else.
You’ll only qualify for the annual bonus interest payment if you make 11 or 12 monthly payments into your account each anniversary year.
If you miss two or more monthly payments, you’ll forfeit the bonus interest for that year. Your account will remain open though and your funds will continue to earn the underlying variable rate.
- You can open a House Deposit Savings Account if you’re aged 18-35.
- You cannot currently own a property when you open this account.
- You must be a UK resident.
If you buy a property but do not claim the voucher, the account will remain open until the tenth anniversary since you opened it. If you buy a property and claim the voucher, the account will be closed as part of the voucher redemption process.