The Newcastle Building Society (NBS) has launched a new savings account to help prospective first-time buyers save for a deposit.

The ‘Newcastle Big Home Saver’ can be opened with one pound and pays a variable rate of 2.98% Gross (3.00% AER), which includes a 1% bonus for regular savers who make at least one deposit and no withdrawals in each month.

After saving for a deposit, the account can also pay up to a £1,000 cash reward upon completion of a house purchase mortgage with the Newcastle.

For instance, if £5,000 to £9,999 is saved in this account and a mortgage is taken with the Society a cash reward of £500 is paid on mortgage completion. If £10,000 or more is saved a £1,000 cash reward is paid on mortgage completion, helping with the costs involved in buying a home.

Steve Urwin, NBS’s sales and marketing executive, said: “The Newcastle understands how challenging it can be for first time buyers and is committed to helping them. We also recognise that most aspiring first time buyers will at some point need to save for a deposit before buying their first home.