Where should I keep my down-payment savings?

If you'll buy within about three years, keep down-payment money safe and liquid — not in the stock market. A market drop right before closing could wipe out part of your down payment with no time to recover. Good options include a high-yield savings account, a money market account, or short-term CDs and Treasury bills, all of which currently pay meaningful interest while protecting your principal. Choose FDIC-insured (or NCUA for credit unions) accounts to stay within coverage limits. If your purchase is five or more years out, a conservative mix with some stock exposure may be reasonable, but the closer you get, the more you should shift to cash. The goal is certainty: the exact amount you need, available the day you close, with no market risk. Avoid tying it up where early withdrawal triggers penalties.