The 401(k) for home ownership

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Foyer Home Savings is a new savings platform designed to help people save for a down payment on a home. If you're like many young adults, you're probably wondering how on earth you'll ever save enough money, and Foyer is here to help.

Foyer Home Savings, also called a “401(k) for home ownership,” offers a High interest savings account so you can invest your money while you save for a down payment on your first home. Just like a 401(k) for retirement, Foyer Home Savings offers savers a bonus on their savings to encourage them to save more.

In this article, you'll learn what Foyer Home Savings is, how to use it if you're a first-time home buyer, and whether or not it's the right tool for you.

• Foyer Home Savings is a high-yield savings app designed to help first-time home buyers.
• Earn 4.51% APR and 2% bonus on deposits up to $10,000 per year.
• $7.99 monthly fee for balances over $5,000.

What is Foyer Home Savings?

Foyer Home Savings is a high-yield app-based savings account designed to help first-time home buyers save for the purchase of their first home. The First Time Homebuyer Savings Account offers customers a 4.51% APR and a 2% markup on deposits of up to $10,000 per year.

The company was founded in 2022 by Landy Liu. The idea behind the app is to help home buyers realize their dream of owning a home as housing affordability continues to be a crisis for young people. This came from Liu's own experience trying to buy a home when rising interest rates continually made it feel like it was impossible.

One feature that sets Foyer Home Savings apart from other savings platforms is that it treats saving for a home like other important financial goals, such as saving for retirement. Foyer offers its users a 2% cashback on deposits up to the first $10,000 every year. Its accounts also offer tax benefits in eligible states.

Foyer also provides educational resources to help first-time home buyers budget for the costs associated with owning a home. This includes other costs that come with the down payment – ​​like closing costs – and understanding how a mortgage works.

What does it offer?

Foyer Home Savings offers a high-interest savings account with a 4.51% APR aimed at first-time home buyers. It also offers a match that is unique to a savings account. Foyer gives you a 2% match on deposits up to $10,000 per year.

It also offers educational resources to help home buyers create a budget and navigate the home buying process.

Savings account for first time home buyers

The First Time Homebuyer Savings Account is Foyer's flagship account offering. The APR is 4.51% and is designed to help customers save for the purchase of their first home. Foyer offers savers a 2% subsidy on deposits up to $10,000 per year.

The account offers some tax advantages in eligible states, including opportunities for deductions and tax-free growth, depending on where you are located. Accounts can be used for a variety of expenses related to purchasing a home, such as a down payment or a home inspection.

Note: Tax benefits are currently only available in Alabama, Colorado, Iowa, Michigan, Minnesota, Mississippi, Missouri, Montana, Oregon and Virginia.

In addition to being able to save for a down payment much more quickly than with a traditional savings account, First Time Homebuyer Savings account holders are connected to real estate experts and local agents to assist them in the home buying process. This is intended to reduce some of the friction – and unexpected costs – that can come with buying your first home.

Foyer's accounts are FDIC insured through Pacific West Bank up to $250,000.

Related: Mortgage calculator: How much house can I afford?

Are there any fees?

Unlike many high-yield savings accounts, Foyer accounts have a service fee of $7.99/month for accounts over $5,000. Not only is this quite high compared to traditional banks, but since the idea is to save money for a down payment, it's likely that your account balance will be more than $5,000, requiring you to pay the monthly service fee.

The monthly fee also reduces any benefit from the moderately high interest rate. If you have $10,000 saved, you'll earn $451 in interest per year. However, this fee eliminates $95 in interest. The APR for earning $356 after fees reduces your APR to 3.5%. Still not bad, but they're almost 2% below the best savings account rates on the market.

You can offset the monthly fee by saving $399.50 per month. In this case, the 2% share would be $7.99. However, if you're saving close to $400 per month, contributing to a regular, high-yield savings account might be a better option.

How do the savings for foyer houses compare?

Foyer Home Savings is a high-yield savings platform for first-time home buyers. This can be a good option if you need assistance purchasing your first home or would like to benefit from Foyer's assistance.

The APR is competitive, but not the highest APR available. And the monthly fee is a bit depressing compared to other banking options.

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	2% off savings up to $10,000 per year	Minimum $500 for highest APR available	Easy access to cash via the linked eChecking account
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How do I open an account?

There is no minimum deposit required to open an account with Foyer Home Savings. Go to the Foyer Home Savings website and click “Get Started” to set up an account. Enter your email address and phone number and create a password to log in.

Once you've set up your login, you may need to verify your identity with government-issued ID. You may also need to connect an external bank account to fund your Foyer Home Savings account.

Related: First Home Buying 101

Is it safe and secure?

Foyer Home Savings is FDIC insured through Pacific West Bank. In the event of bankruptcy, the FDIC steps in and covers your account up to $250,000.

How can I contact Foyer Home Savings?

Foyer Home Savings does not provide a customer service number or contact information on its website. The best way to contact them is a direct message through their app or on one of their social media channels.

Customer service

The Foyer Home Savings app has received a 5-star rating on both Apple and the Google Play Store.

Is it worth it?

Due to the high monthly fee and the associated average effective interest rate, we cannot really recommend Foyer Home Savings. We believe that most people saving for their first down payment would be better off using a traditional, high-yield savings account. You can get a higher interest rate with no monthly fees.

Although Foyer offers a 2% subsidy up to the first $10,000, this is only $200 per year. You'll end up paying about half the monthly fee over the course of a year anyway, reducing some of the benefits you might otherwise receive.

Foyer Home Savings may be worth it for people in a certain situation, especially if you're having trouble saving enough money to buy your first home. The savings component, the ability to receive tax benefits, and access to real estate professionals can help streamline the home buying process. However, you don't necessarily need this account to receive these benefits.

Foyer Home Savings Features

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