Buying a Home? Best Ways to Save Your Down Payment

If you're ready to buy a home, you'll need enough down payment money to qualify for a mortgage. Find out how much you need, six tips to save faster, and the best places to stash cash for your new home. 

Laura Adams, MBA
7-minute read
Episode #455

Instead, tuck your down payment savings in a high-yield, FDIC-insured savings account. That insures your money will be completely safe, give you flexibility, and earn some interest to boot.

Online banks typically offer the highest interest rates because they don’t have as much overhead as institutions with local branches. However, local credit unions can be competitive—if you qualify for membership.

Also see: Bank or Credit Union—Which Is Better?

Online banks typically offer the highest interest rates because they don’t have as much overhead as institutions with local branches. 

Interest rates for online savings accounts change frequently, but here are some good options I recommend Satta check out that have no minimum balance requirements and pay close to 1%:

Making sacrifices to become a homeowner can bring many benefits—especially if you live in an area where owning is less expensive than renting. If you have a fixed-rate mortgage, every mortgage payment you make builds equity in your home, which is a terrific way to build your net worth and wealth.

Get More Money Girl!

Want to know the best financial and productivity tools that I use and recommend to save time and money? Click here to check out 40+ tools I recommend!

To connect on social media, you’ll find Money Girl on FacebookTwitter, and Google+. Also, if you’re not already subscribed to the Money Girl podcast on iTunes or the Stitcher app, both are free and make sure that you’ll get each new weekly episode as soon as it’s published on the web.

Click here to subscribe to the weekly Money Girl audio podcast—it’s FREE!

There’s a huge archive of past articles and podcasts if you type in what you want to learn about in the search bar at the top of the page. Here are all the many places you can connect with me, learn more about personal finance, and ask your money question:

Click here to sign up for the free Money Girl Newsletter!

Download FREE chapters of Money Girl’s Smart Moves to Grow Rich

To learn about how to get out of debt, save money, and build wealth, get a copy of my award-winning book Money Girl’s Smart Moves to Grow Rich. It tells you what you need to know about money without bogging you down with what you don’t. It’s available at your favorite bookstore as a paperback or e-book. Click here to download 2 FREE book chapters now!

Mortgage Concept image courtesy of Shutterstock


About the Author

Laura Adams, MBA

Laura Adams received an MBA from the University of Florida. She's an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura's previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.