Investing

The taxable income limit for the 0% capital gains bracket will be higher for 2025.
That could offer a chance to harvest profits or rebalance brokerage account assets without triggering a tax bill.
But you need to project your complete tax situation first, experts say.

dowell | Moment | Getty Images

The earnings limit for the 0% capital gains bracket will rise in 2025, which could offer tax planning opportunities, financial experts say.
At sale, profitable assets owned for more than one year qualify for lower taxes — known as long-term capital gains. Those rates are 0%, 15% or 20%, depending on taxable income.   

The IRS this week unveiled inflation adjustments for 2025, including higher taxable income limits for the 0% capital gains bracket.
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Starting in 2025, single filers qualify for the 0% long-term capital gains rate with taxable income of $48,350 or less, while married couples filing jointly are eligible with $96,700 or less.

You could qualify for the 0% bracket with higher earnings than you expect. The taxable income formula subtracts the greater of the standard or itemized deductions from your adjusted gross income.
Here’s what investors need to know about planning around the 0% capital gains bracket, according to financial experts.

Weigh ‘tax gain harvesting’

If you’re sitting on profitable investments, the 0% capital gains bracket could offer a chance for “tax gain harvesting,” said certified financial planner Ashton Lawrence, a director at Mariner Wealth Advisors in Greenville, South Carolina.
Here’s how it works: Investors in the 0% capital gains bracket can strategically sell profitable brokerage account assets without triggering capital gains taxes.
You can then repurchase the same assets to “reset your cost basis,” or original purchase price, to save on future taxes, Lawrence said.

Opt for tax-free rebalancing

You can also leverage the 0% capital gains bracket to rebalance brokerage account assets without triggering a tax bill, experts say. You rebalance by purchasing and selling assets to reach a target mix of assets based on your goals and risk tolerance.With the stock market up significantly in 2024, investors should “take some of those gains off the table” before 2025, said George Gagliardi, a CFP and founder of Coromandel Wealth Management in Lexington, Massachusetts. 
“The S&P 500 and some of its largest companies have all seen substantial gains the past few years,” he said. But “markets don’t go up forever” and current gains could become losses. Rebalancing can help reduce portfolio risk amid future volatility, depending on your goals and timeline.

‘Project your entire tax situation’

While the 0% capital gains bracket could save you money, you’ll need to fully estimate your income, which includes assets you plan to sell.
“It’s crucial to project your entire tax situation with and without the capital gains,” said Dallas-based CFP Brandon Gibson, wealth manager at Gibson Wealth Management. “Don’t just do rough math based on the capital gains brackets.”
Plus, boosting your income can trigger other “tax side effects,” such as higher Social Security taxes, increased Medicare premiums or eligibility for marketplace health insurance subsidies, he said. More

Most experts expected that a new rule, which allows money saved in a 529 college savings plan to roll into a Roth individual retirement account, would help increase interest.
Now, 76% of parents say this benefit makes them more likely to open a 529 account, according to a recent report.
Already, $100 million in assets from 15,000 529 plans were transferred to Roth IRA accounts, other data shows.

Flexibility ‘motivates’ 529 funding

The added flexibility is having a significant impact on savers: 23% of parents said the ability to roll over funds into a Roth IRA was one of the key factors that most influenced their decision to open a 529 plan, according to a recent report by Saving For College, a Miami-based company focused on making 529 plans more accessible.
Among the roughly 12% of respondents who don’t yet have a 529 plan, 76% say this benefit makes them more likely to open an account, the report found.

Further, 57% of families with an account are also more likely to boost their 529 plan contributions due to the 529-to-Roth rollover benefit that went into effect in January. The survey polled more than 1,100 adults through Saving For College’s site and newsletter, so respondents were likely more aware of the advantages of 529 plans.
“Knowing there’s a little more flexibility does help motivate clients to fund a 529,” said David Nienaber, a financial planner and shareholder at Foster & Motley Wealth Management. The firm ranked No. 34 on the 2024 CNBC Financial Advisor 100 list.

529-to-Roth rollovers are ‘icing on the cake’

Previously, tax-advantaged 529 plan withdrawals were limited to qualified education expenses, such as tuition, fees, books, and room and board. The restrictions loosened in recent years to include continuing education classes, apprenticeship programs and student loan payments.
But with the 529-to-Roth rollovers, these plans offer much more flexibility, even for those who never go to college, which Nienaber called “the icing on the cake.”
One point of resistance to 529s had been if a child doesn’t end up needing some, or any, of that savings for education, other experts also say.
“The potential of overfunding a 529 plan account and having to face tax consequences with removing excessive funds has been a real concern for many education savers over the past few years,” said Vincent Birardi, a wealth advisor at Halbert Hargrove Global Advisors in Long Beach, California, which ranked No. 54 on CNBC’s FA 100.

“Of the new benefits, this is the one we’ve seen the most excitement around,” said Martha Kortiak Mert, chief operating officer at Saving For College.
“The problem this solves is the barrier to entry,” she said. “This opens up possibilities, new opportunities of what they can do with this kind of account.”
There are still some limitations.
The 529 account must have been open for 15 years and account holders can’t roll over contributions made in the last five years. Rollovers are subject to the annual Roth IRA contribution limit, and there’s a $35,000 lifetime cap on 529-to-Roth transfers.

Total investments in 529s hit $508 billion

Financial experts and plan investors agree that 529 plans are a smart choice for many. And yet, in previous years, data shows that regular contributions to a 529 college savings plan often took a back seat to paying more pressing bills or other priorities.
At the same time, sky-high costs and concerns over ballooning student loan balances have weighed heavily on considerations about college for students and their parents.

Fstop123 | E+ | Getty Images

But this year, in part because of the new changes, more parents are utilizing a 529 college savings plan, with most making recurring monthly and quarterly contributions.
In 2024, total investments in 529s jumped to $508 billion in June, up nearly 13% from $450.5 billion the year before, according to data from the College Savings Plans Network, a network of state-administered college savings programs.

How much you can contribute to a 529 plan

This year, individuals can gift up to $18,000, or up to $36,000 if you’re married and file taxes jointly, per child without those contributions counting toward your lifetime gift tax exemption, up from $17,000 in 2023.
Anyone can contribute — and for grandparents, there is also a new “loophole,” which allows them to fund a grandchild’s college fund without impacting their financial aid eligibility.
High-net-worth families that want to help fund a family member’s higher education could also consider “superfunding” 529 accounts, which allows front-loading five years’ worth of tax-free gifts into a 529 plan.
In this case, you could contribute up to $90,000 in a single year, or $180,000 for a married couple. But then you wouldn’t be able to give more money to that same recipient within a five-year period without it counting against your lifetime gift tax exemption.
A larger lump-sum contribution upfront may potentially generate more earnings compared with the same size contribution spread out over a few years because it has a longer time horizon, according to Fidelity.
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Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., October 24, 2024. 
Brendan McDermid | Reuters

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Here’s what CNBC TV’s producers were watching as the S&P 500 ended a three-day losing streak, and what’s on the radar for the next session.

Tesla

The stock is back in fashion among traders and investors. Tesla was up nearly 22% Thursday. The stock is now just 4% from the July 11 high.
Volume was off the charts today, more than tripling the 30-day average.
CNBC contributor Jeff Kilburg wrote up an options strategy on the stock the evening of the Robotaxi demonstration Oct. 10. It was featured on CNBC.com/pro. Kilburg sold out of the position Thursday when the stock hit $255 a share, locking in a profit that netted him about 220% in two weeks.
The stock went as high as $262.12 Thursday, breaking far above the 200-day moving average. 
The lifetime high is $414.50, hit back in the fall of 2021.
It was Thursday’s most sought-after ticker on CNBC.com, even outpacing the popular 10-year Treasury. 

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Tesla shares in 2024

Cramer on the rig

CNBC’s “Mad Money” did the full hour 140 miles deep into the Gulf of Mexico on a rig run by Chevron. If you want to know about the energy market, go back and take a look. He hit the big integrated stocks, the drillers and more.
Cramer spoke with CEO Mike Wirth who said, “Energy is such a vital part of the global economy that if we find ourselves in the situation where energy supplied are constrained, particularly if they’re constrained by political actions, it can trigger inflationary reactions in the economy.” He added that “because the price of energy is embedded in everything, because everything is delivered, and everything is manufactured, energy is the lifeblood of the economy. So, affordable and reliable energy is essential to keeping inflation at a level that economies can handle.”
Chevron is 10% from the April high and flat year to date.
The S&P Energy sector is 8% from the 52-week high. It’s up about 8% year to date.
Targa Resources is the top performer in the sector, up 94% in 2024.
Williams Companies is second, up 51% in 2024.
Kinder Morgan comes in third, up 42% this year. All three names are near highs.
APA, Halliburton and SLB are at the bottom of the sector. They are down in the 20% to 30% range in 2024.

Capri-Tapestry deal blocked

A judge said “no” to the proposed retail deal after the Federal Trade Commission sued to block it.
Tapestry jumped 14% after the bell. Capri, which holds brands including Versace, Jimmy Choo and Michael Kors, is down 47%. Tapestry has Coach, Kate Spade and Stuart Weitzman.

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Tapestry in 2024

The restaurants

CNBC TV’s Kate Rogers will look ahead at upcoming restaurant reports.
This includes Starbucks and McDonald’s. Both took tumbles on bad news this week. McDonald’s is down nearly 5% week to date in the wake of the E. coli problems. The stock is up 19% in three months. Starbucks is now flat this week. Shares are up 30% in three months. In large part, that’s due to optimism over the new CEO, former Chipotle chief Brian Niccol
Chipotle is on Rogers’ watchlist. The stock is up 15% in three months, but it’s 14% from the June high.
Cava is up 78% in three months. That’s a lot of pita. The stock hit a new high Thursday.
Sweetgreen is up about 50% in three months. The stock is 8% from the high reached two weeks ago.
Darden is up 16% in three months, and it’s 8% from the March high. Brands include Olive Garden, LongHorn Steakhouse, Ruth’s Chris Steak House, The Capital Grille and Seasons 52.
Bloomin’ Brands has Bonefish Grill and Outback Steakhouse, but it is the stock that’s really down under: Shares are off 15% in three months, and the stock is 47% from the March high.

Fannie and Freddie

Both stocks are up as of late. In part, that’s due to speculation that if former President Trump wins the election, he’ll privatize them.
Federal National Mortgage Association is up about 9.4% in four days. The stock is up roughly 29% in October.
Freddie Mac is up 5.4% this week so far, and it’s up 18% in October. More

Brad Garlinghouse, CEO of Ripple, speaks at the 2022 Milken Institute Global Conference in Beverly Hills, California, U.S., May 4, 2022. 
Mike Blake | Reuters

Ripple Labs CEO Brad Garlinghouse has been skeptical of crypto regulation in the U.S., but he is feeling highly optimistic about the post-election environment around the corner.
“This is the most important election we’ve had, but I also believe no matter what happens, we’re going to have a more pro-crypto, more pro-innovation Congress than we’ve ever had,” he said in a Wednesday conversation with CNBC at DC Fintech Week.

Ripple, a veteran company in crypto known in part for its close association with the XRP token, operates a global payments business with banks and financial institutions as its main customers. About 95% of its business takes place outside of the U.S., which Garlinghouse said is partly a reflection of the contentious environment in Washington.
In 2020, the U.S. Securities and Exchange Commission sued Ripple, but last year the company scored a big victory for the industry when a judge determined that XRP is not a security when sold to retail investors on exchanges.
On Wednesday, Garlinghouse offered a piece of advice to fintech startups in this changing time: “Incorporate outside the United States.”
Nevertheless, he was upbeat about where the industry is heading in the long term.
“Anybody who doesn’t believe that no matter what, we’re going to end up in a better place, is not paying attention … and [if in] 10 years we look back on how the U.S. got it wrong for years and years. … It’s going to be a speed bump, and this industry is going to continue to thrive.”

An approaching ‘reset’

Ripple has donated at least $45 million to the Fairshake pro-crypto political action committee. Co-founder Chris Larsen recently donated $11 million to Vice President Kamala Harris’ campaign. Garlinghouse pointed out he was intentionally wearing a purple tie on Wednesday.
“Obviously, Trump came out early and very aggressively in a pro crypto [way] and said he’s the crypto president,” Garlinghouse said. “Team Harris have been more nuanced. This week, they had some of the most constructive things they have said publicly.”
“Kamala Harris is from Silicon Valley, she has generally been pro technology over the years,” he added. “She has been relatively quiet on the topic, but I think no matter what happens, we’re going to see a reset.”
Because of that contrast, sentiment in the crypto industry has grown increasingly partisan — even as it has previously applauded growing bipartisan support for crypto issues in Congress. Many pro-crypto voters fear that the Harris campaign would continue the “attack” on crypto, as Garlinghouse called it.

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“No matter what happens, we’re going to leave behind a failed approach from the Biden administration,” he said. “It has been an attack, and it isn’t just the SEC. The [Office of the Comptroller of the Currency] is hostile towards crypto; the Treasury is hostile towards crypto.”
He highlighted banks becoming unwilling to work with crypto businesses in what many in the industry have referred to as “Operation Chokepoint 2.0.” The term refers to an Obama-era project known as “Operation Choke Point,” which discouraged banks from serving risky but legal enterprises, such as payday lenders and online gambling businesses.
“That is a hostile administration, and no matter what happens in this next election, we will have a reset,” Garlinghouse said. “We can debate the magnitude of that reset, and there’s lots of disagreement about that. … We’re going to see forward progress, and I certainly am looking forward to that.”
Though Garlinghouse hasn’t publicly backed any of the presidential candidates, he said that this week he endorsed John Deaton, an attorney seeking to unseat Sen. Elizabeth Warren, D-Mass. Warren has been critical of the crypto industry, seeking additional oversight of the space.

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The IRS on Tuesday announced 2025 inflation adjustments for long-term capital gains, which apply to investments owned for more than one year.
In 2025, single filers can have $48,350 in taxable income or $96,700 for married couples filing jointly and still pay 0% capital gains taxes.
The 0% capital gains bracket could offer a tax planning opportunity for investors, experts say. 

Phynart Studio | E+ | Getty Images

If you’re ready to rebalance investments or harvest profits, you could shield more earnings from capital gains taxes in 2025.
The IRS on Tuesday announced dozens of inflation adjustments for 2025, including long-term capital gains brackets, which apply to assets owned for more than one year.

Starting in 2025, there are higher taxable income thresholds for the 0% capital gains bracket, meaning investors can sell more assets without triggering taxes.
The 0% capital gains bracket creates a “significant opportunity” for tax planning, according to certified financial planner Neil Krishnaswamy, president of Krishna Wealth Planning in McKinney, Texas.
More from Personal Finance:The IRS unveils higher capital gains tax brackets for 2025How to rethink cash as the Fed cuts interest ratesHealth savings accounts offer ‘unmatched’ tax benefits, expert says
The 0% capital gains bracket can “allow you to transform your taxable account into a tax-free account, at least temporarily,” said Krishnaswamy, who is also an enrolled agent.
Here’s what to know about the 0% long-term capital gains rate for 2025 and how to qualify.

Who qualifies for 0% capital gains in 2025

Starting in 2025, single filers can qualify for the 0% long-term capital gains rate with taxable income of $48,350 or less, and married couples filing jointly are eligible with $96,700 or less.
However, taxable income is significantly lower than your gross earnings. You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income.
Most taxpayers use the standard deduction, which also adjusts for inflation. In 2025, the standard deduction increases to $15,000 for single filers and $30,000 for married couples filing jointly.

In 2025, a couple making well over $100,000 could still fall within the 0% capital gains bracket after subtracting the standard deduction, experts say. 
For example, if a married couple earns $125,000 together in 2025, their taxable income could be under $96,700 after subtracting the $30,000 standard deduction.

However, “people still need to be mindful about their income and where they may fall within the bracket,” said Ashton Lawrence, a CFP and director at Mariner Wealth Advisors in Greenville, South Carolina. “Surpassing the 0% threshold by even a small amount could mean a 15% tax on all gains above the limit.”
Plus, profitable assets you sell will be part of the taxable income calculation and could bump you above the 0% capital gains threshold. Before selling assets, you should run a full-year tax projection and understand how the increased income could impact your situation.

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Traders work on the floor of the New York Stock Exchange (NYSE) on October 22, 2024 in New York City. 
Spencer Platt | Getty Images

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Here’s what CNBC TV’s producers were watching as the 30-stock Dow and the S&P 500 posted a third straight losing day, and what’s on the radar for the next session.

The airlines

After two big interviews regarding the Boeing strike in two days, CNBC TV’s Phil LeBeau turns his attention to two big airlines.
He’ll interview Robert Isom, CEO of American Airlines, in the 7 a.m. hour ET and Robert Jordan, CEO of Southwest Airlines, in the 9 a.m. hour.
American Airlines is up 22% in the past three months. The carrier reports on Thursday morning. American is 20% from the March high.
Southwest also reports Thursday morning. The stock is up 13% in three months. Southwest is 12.6% from the February high.
Over the last three months, United Airlines is the leader in the group. Shares are up 52% over that period. The stock hit a high Monday.

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American Airlines over the past three months

The utilities

Utilities are the only S&P 500 sector up so far this week: up 0.26%. It is up 17% in three months.
Four utilities hit new highs Wednesday, including Dominion Energy, DTE Energy, Consolidated Edison and Entergy.
Entergy is now at an all-time high. The stock is up 5.3% in a month and 24% in three months.
Consolidated Edison, also hit a new all-time high Wednesday. The stock is up 3% in October, and it has gained 15% in three months.
DTE is at a 25-month high. The stock is up about 3% in a month, and it’s up 12% in three months.
Dominion Energy is at a 20-month high. The stock is up 5.4% in October and up 20% in three months.

Honeywell reports before the bell

In a week full of reports from big industrials, Honeywell is next on the list. The company reports Thursday before the bell.
The stock is up 1.4% since last reporting three months ago and hit a high Monday. The stock is up 6.6% so far in October.
The S&P Industrials sector is up 39% in the last year.
Howmet Aerospace is the top performer, up 136% in the past year. It’s followed by GE Aerospace, up 113%. Axon is up 110% in the last year.
Paycom, Boeing and UPS are the weakest performers in the industrials in the last year. Paycom is down 36% in the past year, while UPS is down 11%. Boeing is down 13% in a year.

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Honeywell in 2024

CBRE Group reports before the bell

The real estate investment trust reports Thursday morning.
The stock is up 24% in the last three months and hit a high Monday.
Many of the office REITs have had a solid three months.
Vornado is up 46% in three months. BXP is up nearly 26% in three months, and SL Green is up 20%. Brandywine is up about 12% in that period.
The S&P Real Estate sector is up 8.5% in three months. It’s 2% from the mid-September high.

Several regional banks report Thursday

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Valley National Bancorp over the past three months

Weyerhaeuser reports after the bell

The company specializing in timber products is up 5% over the past three months.
Weyerhaeuser is 12% from the March high.
There are two ETFs with nifty symbols in the space. CUT is the Invesco MSCI Global Timber ETF, and it is flat in three months. It’s 4.6% from the September high.
WOOD is the iShares Global Timer & Forestry ETF. It is also flat in three months. The ETF is 7% from the September high.

Microsoft’s AI Copilot

CNBC TV’s Steve Kovach is tracking Microsoft’s AI Copilot product on Thursday, almost a year after its release.
Microsoft ended Wednesday’s trading at $424.60 a share. That is 9.3% from the July high. 
The stock is up about 13% so far in 2024.

Nvidia’s Jensen Huang in India

CNBC TV’s Seema Mody will watch and listen in on Nvidia CEO Jensen Huang’s trip to India, a growing tech hotspot.
Nvidia is 3.4% from the high hit Tuesday.
The stock is up about 15% so far in October and up 181% in 2024.

Palantir’s Alex Karp

The CEO of the defense tech company will be with CNBC TV’s Morgan Brennan and Jon Fortt in the 4 p.m. hour.
Palantir is up 14.5% in October.
The stock is down 4% from the Oct. 14 high.
Palantir has almost doubled in the last six months. It ended Wednesday’s session at $42.59, and shares are up 1% after hours. More

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Ripple Labs CEO Brad Garlinghouse will speak at DC Fintech Week in Washington, D.C., on Wednesday afternoon.

Ripple, the largest holder of XRP coins, scored a partial victory last summer after a three-year legal battle with the U.S. Securities and Exchange Commission. This was hailed as a landmark win for the crypto industry as it established a precedent that could help determine when other cryptocurrencies might be deemed securities. The SEC appealed that decision earlier this month.
Garlinghouse will discuss that lawsuit, along with Ripple’s role in informing U.S. crypto regulation more broadly. He will also speak about the upcoming presidential election and his donations to the Fairshake pro-crypto political action committee.
The CEO will also talk about why his company is entering the burgeoning stablecoin space this year with the launch of Ripple USD (RLUSD).
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Coming up with a down payment can be daunting with high home prices.
Different investment and savings vehicles can help you get a higher return on your funds, experts say.
Deciding what works best for you will depend on when you need to access the money, said one financial advisor.

Saving for a home down payment can feel challenging, given current real estate prices. Using the right assets can help give your balance a lift.
When you actually need the money is the “biggest driving factor,” said Ryan Dennehy, principal and financial advisor at California Financial Advisors in San Ramon, California. The firm ranked No. 13 on the 2024 CNBC FA 100 list.

“Do you need the money six months from now, or do you need the money six years from now?” he said.

More from FA 100:

Here’s a look at more coverage of CNBC’s FA 100 list of top financial advisory firms for 2024:

That timing matters because financial advisors generally recommend keeping money for short-term goals out of the market. There can be more flexibility for intermediate-term goals of three to five years, but it’s still wise to prioritize protecting your balance. After all, you don’t want a bad day in the market to impact your ability to put in an offer on a home.
But that doesn’t mean your down payment funds need to sit in a basic savings account, either.
Here’s how to figure out how much money you might need, and some of the options for safely growing your balance:

How much you need for a down payment

Understanding how much money you might need can help you better gauge your timeline and the appropriate assets for your down payment.

As of the second quarter of the year, the median sales price of U.S. homes is $412,300, according to the U.S. Census via the Federal Reserve. That is down from $426,800 in the first quarter, and from the peak-high of $442,600 in the fourth quarter of 2022, the Fed reports.
So, for example, if a homebuyer is looking to put a 20% down payment on a $400,000 house, they might need to save about $80,000, said certified financial planner Shaun Williams, private wealth advisor and partner at Paragon Capital Management in Denver. The firm ranks No. 38 on the FA 100.

Do you need the money six months from now, or do you need the money six years from now?

Ryan D. Dennehy
financial advisor at California Financial Advisors in San Ramon, California

Of course, a 20% down payment may be traditional, but it’s not mandatory. Some loans require as little as 5%, 3% or no down payment at all. Down payment assistance programs can also cover some of the tab.
In 2023, the average down payment was around 15%, with first-time buyers typically putting down closer to 8% and repeat buyers putting down around 19%, according to the National Association of Realtors.
Just be aware that if you put down less than 20%, the lender may require you to buy private mortgage insurance. PMI can cost anywhere from 0.5% to 1.5% of the loan amount per year, depending on factors like your credit score and down payment, according to The Mortgage Reports.

4 ways to grow your down payment savings

Here are some options that advisors say are worth considering, depending on when you hope to buy a home, how much you already have saved and how accessible you need the cash to be:

1. CDs

A certificate of deposit lets you “lock in” a fixed interest rate for a period of time, Dennehy said. You can buy a CD through a bank or a brokerage account. 
Term lengths for CDs can span from months to years. The annual percentage yield will depend on factors like the interest rate at the time, the term of the CD and the size of deposits.

If you need to access the funds before the CD matures, a bank may charge a penalty wiping out some of the interest earned, Dennehy said. Some banks offer penalty-free CD options, too.
With brokered CDs, there’s often no penalty charge for early withdrawal, but you are subject to whatever the CD is valued at on the secondary market, he said. You may also face sales fees.
As of Oct. 23, the top 1% one-year CDs earn around 5.22% APY while the national average rate is 3.81%, per DepositAccounts.com.

2. Treasury bills

Backed by the U.S. government, Treasury bills are an asset that give you a guaranteed return, with terms that can range from four to 52 weeks. The asset could be less liquid, depending on where you purchase.
T-bills currently have yields well above 4%.
You can purchase a short-term or a long-term Treasury depending on your goal timeline, said Dennehy.
Treasury interest is subject to federal taxes, but not state or local income tax. Stacked against CD rates, Treasurys can offer a “comparable rate with less of a tax impact,” said CFP Jeffrey Hanson, a partner at Traphagen Financial Group in Oradell, New Jersey. The firm ranks No. 9 on the FA 100.

High yield savings accounts [are] great if you’re going to be buying in the next year.

Shaun Williams
private wealth advisor and partner at Paragon Capital Management in Denver, Colorado

3. High-yield savings accounts
A high-yield savings account earns a higher-than-average interest rate compared with traditional savings accounts, helping your money grow faster.
The top 1% average for high-yield accounts is 4.64% as of Oct. 23, per DepositAccounts.com. To compare, the national average for savings accounts is 0.50%.
Their ease of access makes a HYSA especially suitable as you get close to starting your home search.
“High-yield savings accounts [are] great if you’re going to be buying in the next year,” Williams said.

4. Money market funds
A money market fund generally has a slightly higher yield than a HYSA, said Dennehy. Some of the highest-yielding retail money market funds are nearly 5% as of Oct. 23, according to Crane Data.
But a HYSA is typically insured by the Federal Deposit Insurance Corp. A money market fund is not, said Dennehy.
Still, money market funds are considered low risk and are intended not to lose value, according to Vanguard. They may be eligible for $500,000 coverage under the Securities Investor Protection Corp., or SIPC, when held in a bank account, Vanguard notes. More