Clydesdale and Yorkshire banks have today launched a new regular saver account designed to assist first-time buyers putting together a deposit to secure their first property.
The Regular Home Saver provides a means to save monthly towards a deposit on a first home, with the ability to vary payments during the term and up to £1,000 cashback if you take out a Clydesdale or Yorkshire Bank First-Time Buyer (FTB) mortgage.
To open the new account you’ll need at least £200 with further minimum monthly deposits of £200. The account’s interest rate will track the Bank of England’s base rate (currently 0.5%).
Cashback of £500 will be paid to those saving a deposit of at least 5% and taking a Clydesdale or Yorkshire Bank FTB mortgage, with people who save 10% getting cashback worth £1,000.
A decent idea
Steve Reid, Retail Director for Clydesdale Bank, said: ‘What we understand from speaking to first-time buyers is that with interest rates as low as they have been, they don’t always see the value of saving.
‘Regular Home Saver is straightforward and offers very real rewards for getting in to the savings habit and building a deposit: the more deposit you save, the bigger the reward.’
Paul Davies, savings analyst at Which?, said of the new account: ‘The idea of targeted savings accounts is generally a good one, but the products on offer have to stand up to scrutiny. Other regular savings accounts from Norwich BS, Principality BS and Santander are currently paying 4% which makes this rate look paltry.
‘The cashback on offer might seem attractive but the FTB mortgage deals don’t appear particularly competitive and you would be better off using our mortgage calculator to find the cheapest overall deal for your circumstances.’
Best Rate savings accounts
You should always aim to get the most competitive rate on your savings and we can help you with our Best Rate tables which are updated on a daily basis.
If you are a first-time buyer hoping to buy a flat or house, our guide to getting onto the property ladder will answer all of your queries.
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