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Find the Best Savings Account For First-Time Buyers

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.

How to Find the Best Savings Account

find the best savings account

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:

  1. Security: Look for accounts that are FDIC-insured up to $250,000 per depositor, per insured bank, for each ownership category.
  2. Liquidity: Your account should provide quick access to your money when you need it.
  3. Low-cost earnings: Finding an account without service fees or minimum balance requirements is a solid choice since every dollar you save can go directly into your new home.

More Savings Tips

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.

home payment solutions

Saving for a First Home with Roth IRAs and CDs

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.

Finding the Best Accounts at Synchrony Bank

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.

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Sources:

Investopedia: http://www.investopedia.com/articles/pf/06/fdicinsurance.asp

IRS: https://www.irs.gov/publications/p590b/ch02.html#en_US_2016_publink1000231061

NerdWallet: https://www.nerdwallet.com/blog/banking/cd-certificate-of-deposit/


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