Low-Risk, High-Reward Accounts Every Homebuyer Should Know
At GetBurbed, we know buying a home is more than just a transaction—it’s a journey. Whether you’re preparing to purchase your first home or upgrading to your forever one, saving with intention is a key part of the process. And where you keep that savings? It matters.
While investing in the stock market may offer higher returns, it comes with risk—something most buyers can’t afford when they’re preparing to make a major purchase. Instead, we recommend keeping your down payment and other home-related funds in low-risk, high-yield accounts that still allow your money to grow.
Below are three smart, low-risk options to consider as you prepare for homeownership:
High-Yield Savings Account (HYSA)
For short- to mid-term savings goals like a down payment, a high-yield savings account offers the perfect blend of security, flexibility, and return.
As of May 2025, some HYSAs are offering rates up to 4.4% APY, compared to the national average of just 0.41% APY on traditional savings accounts. That means if you deposit $10,000, you could earn over $440 in interest annually, versus just $41 with a standard account.
Key Benefits:
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FDIC-insured up to $250,000
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Easy access to your money (limited monthly transfers may apply)
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No market risk
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Interest rates may fluctuate with the federal funds rate
Money Market Account (MMA)
Looking for a hybrid account with both earning power and accessibility? A money market account (MMA) offers just that. These accounts typically come with:
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Debit card access
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Check-writing capabilities
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Competitive variable interest rates (often 4%+)
MMAs can be a great option if you want your money to grow while still having it readily available. Just be mindful—many MMAs require a minimum balance to avoid monthly fees, so they may not be ideal for those starting small.
Certificate of Deposit (CD)
If you’re confident you won’t need to access your savings for a while, a certificate of deposit can provide even more guaranteed growth. CDs allow you to lock in a fixed interest rate for a set term—ranging from a few months to several years—with many currently offering 4%+ APY.
However, early withdrawals usually come with penalties. According to financial planner Wendy Rosen:
“If something comes on the market before the CD term ends and you fall in love with it, you’ll be stuck paying penalties. CDs are best when you’re 100% certain you won’t need to break them.”
Why It Matters: Safety Over Speculation
Yes, you might miss out on a market rally—but more importantly, you’ll protect your down payment from the kind of market swings that could derail your homebuying plans.
Saving smarter today means you’ll be ready to move confidently when you find the right home tomorrow.
Partner with GetBurbed Early in Your Journey
Buying a home isn’t just about choosing the right property—it’s about making smart financial choices before you even start the search. That’s where we come in.
At GetBurbed, we do more than just unlock doors—we help you prepare every step of the way. From recommending trusted mortgage pros to making sure your savings strategy aligns with your timeline, we’re here to make your path to homeownership as smooth (and rewarding) as possible.
Have questions about your home search or saving strategy? Let’s talk. We’d love to help you "get burbed"—and get you home!
