🏡 Saving for a Home? Here’s Where to Keep Your Funds

If you are saving for a home, where you keep your down payment funds matters. This is not the time to take big risks or hope for stock market gains. Instead, you want safe, reliable growth so your money is ready when you find the right property. Here are a few smart places to park your savings.

High-Yield Savings Account (HYSA)

A high-yield savings account offers a simple, flexible way to grow your funds. Many HYSAs are offering rates around 4.4 percent APY right now, far above the national average of 0.41 percent for traditional savings accounts. If you put away $10,000, you could earn over $440 in interest in a year. These accounts also let you access your money easily if the perfect home comes on the market. Just note that rates can change based on market conditions.

Money Market Account (MMA)

Money market accounts offer solid interest rates and the added convenience of check writing or debit card access. Many MMAs offer rates near 4 percent APY, though you may need to maintain a minimum balance to avoid fees. If you are starting to save or want maximum flexibility, a high-yield savings account might be the better choice.

Certificate of Deposit (CD)

CDs can offer competitive interest rates if you do not need immediate access to your funds. Rates of 4 percent or higher are common, but your money is locked up for a set term. If you withdraw early, you will likely pay a penalty. CDs work best when you are sure of your timeline and do not need to stay flexible.

Bottom Line

Your down payment savings should be protected from market swings. These accounts help you do just that while still earning interest. As you get closer to buying, work with your lender, financial advisor, and real estate agent to ensure your funds are in the right place. Careful planning means you will be ready when the right home comes along, whether you are looking in Glenview, Wilmette, Winnetka, or anywhere along the North Shore.

💡 If you have questions or are thinking about making a move, I am happy to help. Let’s connect.