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How to Save for a House Deposit | Savings Tips

There is no magic secret to saving money for a deposit on a new house. But there are several tools to help make saving easy and faster. Learning the right savings strategies means more than simply not spending money from your checking account. 

Keep reading to learn a few tools to help you save for a down payment on a new home

How Much Will You Need to Save for a Deposit

saving for a house deposit

Saving a deposit to secure a mortgage is the first step to being financially ready to buy a house. When thinking about your down payment, note that some home deposits will equal as much as 3% of your offer amount for an earnest money deposit plus another 20% in mortgage down payment.

How will you raise that money? Here are a few expert tips. 

Spend Less

First, make a list of your monthly expenditures. Then here’s the hard part: identify the expenses that can be cut out.

Cutting expenses starts by looking at the non-essential purchases, then weighing those luxuries against the value of buying a new home. Small indulgences can quickly add up. 

Save More

save for a house deposit

Saving is never easy. When you put money aside for a down payment, you want this process to be as convenient and painless as possible. 

Savings accounts can help you with your financial goals.

Certificates of deposit (CDs) offer earnings on a deposit for the term of your choosing.

IRAs can supply you with a deposit on a new home. If you have an IRA, you may be exempt from paying an early withdrawal penalty if the money is used to buy a first home.

Synchrony Bank Can Help You Save

Synchrony Bank has several excellent savings tools to help you save money for a house, including high yield savings accounts, CDs and IRAs. Our high yield savings accounts allow for quick withdrawals online, over the phone or with an ATM card.*

In addition to our award-winning customer service, our accounts are FDIC-insured up to $250,000 per depositor for each ownership category. 

Call Synchrony Bank at 1-844-345-5789 or visit us online to begin saving for your home deposit.

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Sources:

Federal Reserve: https://www.federalreserve.gov/boarddocs/supmanual/cch/int_depos.pdf 

SFGATE: http://homeguides.sfgate.com/much-deposit-need-home-loan-6967.html

IRS: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions

*Federal regulations limit the number of electronic and telephone transactions you can make with your High Yield Savings/Money Market account to six transfers or withdrawals per monthly statement cycle. If you exceed these limits, we may close your account.


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