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I’m Keeping My Down Payment in an HYSA for 2 Years. Here’s How Much Interest I’m Earning

Every dollar counts when you're saving for a home.

Woman buying new house with realtor
Roxana Loomes
Melinda Sineriz, ABFP®
By Roxana Loomes , Edited by Melinda Sineriz, ABFP®
Updated Nov. 3, 2026
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Quick Read

  • A single $25,000 deposit in a high-yield savings account (HYSA) is on track to earn about $1,880 in interest over two years. The same money at the national average (0.38%, according to the FDIC) would earn roughly $190.
  • Having a separate account makes it easy to leave the money alone.
  • My rate has dropped from 4.1% to 3.5%, but the account still pays far more than checking or a basic savings account.
  • At the national average savings rate of 0.38% (as of 06/15/26), $20,000 earns $76 a year. The same balance could earn up to nine times more with a SoFi Checking and Savings account. See SoFi®'s current rate.

I transferred $25,000 into an HYSA in November 2025 and left it there for a down payment. After two years, it's on track to earn about $1,880 in interest, bringing the balance to roughly $26,880. That's about 7.5% more than what I started with. With a short timeline, I wasn't sure interest was worth bothering with. Almost a year in, the numbers say it is.

What I expect two years of interest to add up to

Here's what the account has earned and is on track to earn, next to what the same balance would earn at the national average of 0.38%:

Year 1 Year 2 (Projected) Total
Starting balance $25,000 $25,971 $25,000
Interest earned $971 ~$909 ~$1,880
Ending balance $25,971 ~$26,880 ~$26,880
Interest at national average ~$95 ~$95 ~$190

The first year earned more because I had a 4.1% APY for the first six months. The second year's rate is lower, but interest compounding on a larger balance makes up some of the difference.

Overall, the HYSA pays nearly 10 times what a typical savings account does.

How I set up the account

I wanted to keep things simple, so I opened a separate HYSA in November 2025 and transferred the full $25,000.

It's at a different financial institution than my checking account. Moving the money took a few days, which wasn't an issue. The money is FDIC-insured through the account's partner banks.

I don't have a debit card, and I didn't connect the account to anything I spend from. That way, the money and the interest it earns stay put.

What happened to the rate along the way

The account opened at 4.1% for six months. After that, my rate drifted lower, first to 3.75% and then to 3.5%. That's normal for high-yield accounts, since their rates are variable and can change at any time.

That cost me real money, although not a painful amount. On a balance of about $26,000, the drop from 4.1% to 3.5% works out to roughly $13 less per month.

I was tempted to switch once the promotional rate ended. Some banks pay more, but the gap isn't big enough to justify opening a new account and moving the funds every few months. My rule is to switch only if a competitor beats my rate by a meaningful margin for at least six months. None have so far, so I'm staying put.

Since I made one deposit and no ongoing contributions, there was nothing else to adjust.

When it's time to use it

I plan to keep the money in the HYSA until November 2027. After that, I'll move it to the closing table.

Here are a few things to plan for if you're saving for a down payment:

  • Check transfer limits: Many banks cap outgoing daily or monthly transfers. I already confirmed mine and asked about wire limits.
  • Plan for the wire: Closing agents often want funds by wire, which usually carries a fee. Ask your bank what it charges and when you should submit the request to have the money on hand.
  • Verify instructions by phone: Be mindful of wire fraud. Call the title company at a number you looked up yourself, not one from an email or text.
  • Move the money early: I plan to transfer the funds to checking a week before closing so nothing delays the purchase.

Bottom line

I started with $25,000, and two years of interest is on track to add about $1,880. That's roughly $1,690 more than a typical savings account would pay, with no extra effort. The money stays put until November 2027, when I plan to make the purchase.

If your down payment is sitting in checking, moving it to a dedicated HYSA could earn you real money while you wait.

FAQs

Is a high-yield savings account a good place to save for a down payment?

It could be a good fit if you need the money within a few years. Your money stays accessible, earns far more than it would in checking, and doesn't carry investment risk. Confirm the account is FDIC-insured and check the coverage limit if you have a large balance.

Should I keep my down payment in a high-yield savings account or a CD?

A certificate of deposit (CD) locks in the interest rate, which helps if you expect rates to fall. However, early withdrawal usually carries a penalty. If your closing date may move, the HYSA's flexibility may be worth more than a CD's locked-in rate. You could also split the money between an HYSA and a CD to balance flexibility and rate.

How much interest will my down payment savings earn?

It depends on the balance and the rate. In my case, $25,000 at rates between 3.5% and 4.1% is on track to earn about $1,880 over two years. Rates are variable, so treat all projections as estimates.

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