Savings account offers £ 500 bonus to first-time buyers

A savings account that pays out a bonus of £ 500 to first-time buyers was launched today by Coventry Building Society.

The First Home Saver allows customers to set aside up to £ 1,000 each month for up to three years and pays interest of 0.85%.

The £ 500 bonus is available to those who save for more than six months and take out a mortgage with the Coventry Building Society.

It’s also flexible, which means savers can change the amount they pay each month and withdraw funds as needed.

Currently the best rate you will find among the easily accessible savings accounts available in the market is 0.60%. This is available on Aldermore’s Double Access account number 1, according to data from Moneyfacts.co.uk.

As an added feature, The Coventry First Home Saver is also available to parents of first-time buyers. Parents can open an account and receive the £ 500 bonus when their child purchases their first home with a mortgage from the Coventry Building Society.

Matthew Carter, Head of Savings and Mortgages at Coventry Building Society, said: “We want to help more people achieve their dreams of buying their first home and our First Home Saver account rewards the tremendous efforts people must do to save for their first home. climb the property ladder.

“The people who make their first real estate deposit are among the best savers. They have to lose thousands of pounds, often from scratch, while making sacrifices in many other areas of their lives.

“The reward for saving for a first deposit is great and a boost of £ 500 could make a big difference for those starting out as first-time homeowners.

“This account is also for Mom and Dad’s Bank. Parents often help their children move up the property ladder and they can also receive the £ 500 bonus if their child buys their first home with us.

“Even without the bonus, the First Home Saver has a competitive interest rate and although it is a regular savings account, it gives customers the flexibility to change the amount they contribute or withdraw from the account as needed. “

Alternatives

First-time buyers can also benefit from a bonus on their savings by using a Lifetime ISA (LISA). Savers under 40 can open one of these accounts, allowing them to set aside up to £ 4,000 per year.

The government pays a 25% bonus on savings, up to £ 1,000 per year. Currently, the interest rates on cash LISAs are between 0.10% and 0.85%, but because they are ISA, they are tax exempt.

While the Coventry account only offers a bonus to those who take out a mortgage with the real estate company, LISAs are not limited to one particular borrower. As a result, first-time buyers can access offers across the entire market.