NatWest launches First Home Saver Account

NatWest is encouraging would-be first-time buyers with the launch of a new savings account aimed at those putting money aside for their deposit.

The First Home Saver Account provides tax-free cashback of up to £5,000 for a basic rate tax payer who goes on to complete a NatWest mortgage.

For those paying tax at the higher rate the cashback increase to a maximum of £8,333.

Anyone wishing to open an account will need a minimum of £100 for the starting balance.

They will then have to commit to at least one regular monthly payment of £50 or more, which has to be paid by standing order. Additional deposits can be made at any time.

Interest is payable at between 1.9% and 3.1% depending on the balance and the final amount of the cashback reflects the amount the customer has saved.

According to NatWest, the combined interest and cashback is equivalent to slightly under 20% AER.

When the account has been up and running for six months, an application for a NatWest mortgage can be made.

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