Core Insights - The national median home price reached a record high of $365,000 in Q4 2025, requiring a down payment of $73,000 for a 20% deposit [1] - Saving for a down payment is a significant financial goal that requires time and strategic planning [2] Savings Options for Down Payments - **High-Yield Savings Account (HYSA)**: Offers flexibility and competitive interest rates, with some online banks providing rates over 10 times the national average [4][5] - **Certificate of Deposit (CD)**: Provides higher interest rates than traditional savings accounts, with the average 1-year CD rate at 1.63% and top rates exceeding 4% APY [8][9] - **Money Market Account (MMA)**: Combines savings and spending capabilities, offering competitive interest rates similar to HYSAs or short-term CDs [11][12] - **First-Time Home Buyer Savings Account (FHSA)**: Allows for tax-deductible contributions at the state level, with potential tax-free interest, available in certain states [14][15][17] - **Individual Development Account (IDA)**: Aimed at low-income buyers, offering matching funds to accelerate savings for a down payment [19][20][22] Considerations for Choosing Accounts - The best savings account depends on individual financial goals and situations, with a recommendation to compare options from multiple financial institutions [23][24]