First-time home buyers face a lot of challenges, but finding the best savings account to build a deposit or down payment shouldn't be one of them. There are many financial tools that can help your dreams of homeownership come true.
Whether you need short-term saving options or have long-term goals, there's a savings account that is right for you. Keep reading to learn how to find the best savings account for first-time buyers.
A traditional savings account can help first-time home buyers prepare for their purchase.
Buyers can keep money safe from the impulse to spend it prematurely while earning some interest. Buyers will also have quick access to their money in a savings account, unlike some long-term savings tools.
There are three main features to look for when shopping for the best savings account to build a down payment:
Some savings accounts offer automatic savings transfers that directly pull money from a checking account into a savings account at regular intervals — for example, on payday. That way, money goes into savings before you have it available for spending.
Online banks have lower overhead costs and can pass those savings onto customers in the form of low cost or free savings accounts with no minimum balances. Online banking also offers the convenience of 24/7 control and access to your money.
Some financial experts suggest that if you are planning ahead and can save money untouched for five years, opening a Roth IRA may be a good choice for saving for a first home:
Certificates of Deposit (CDs) can also help first-time home buyers save for a new home with fixed rates and terms of your choosing. Typically, CD terms range from three months to 60 months so you can decide how long you want to save for your new home.
The convenience of online banking, free savings accounts, CDs and IRAs can all be found at Synchrony Bank. At Synchrony Bank, we offer:
To find the best savings account to help with your first home purchase, call Synchrony Bank at 1-844-345-5789 or find us online.
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of .
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For Money Market and High Yield Savings Accounts, the rate may change after the account is opened. For CDs, a minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. The APY shown for CDs and IRA CDs is for a 60-month CD with a balance of at least $25,000. Click here for all CD rates and terms offered.