How much should I keep?

Three to six months of essential expenses, plus one to two percent of the home's value each year for maintenance, plus whatever your supplemental tax bill is going to be. The calculator on this page adds those up for your numbers.

Where should I keep it?

A separate high-yield savings account, not your checking. Separate matters more than the rate — money in the account you spend from gets spent.

FDIC insurance covers up to $250,000 per depositor, per insured bank, per ownership category. Above that, split it across banks.

Should I pay down the mortgage instead?

Once the cushion is full, extra principal is a reasonable next step, especially at today's rates. Before the cushion is full it's usually the wrong order — a missed emergency costs more than the interest you saved.

← What would you do with it?

Start homeownership with a cushion.

Why the money you keep might do the most good in the bank, and how to set it up.

See how much you'd start with

A calm scene: a couple on the couch of their new home, laptop open to a generic savings dashboard, no bank branding.

The short version

Homes come with surprise bills. Plan on 1–2% of the home's value a year for maintenance.
Top high-yield savings accounts pay about 4% right now. The national average is about 0.37%.
Set up separate buckets for the bills California homeowners don't see coming.

Your cushion, in buckets

Four separate buckets: an emergency fund of three to six months, the supplemental tax bill, yearly maintenance at one to two percent of the home's value, and room for insurance and HOA increases.

Work out your numbers

How big should my cushion be?

Monthly essential expenses

Home value$1,000,000

Seller's current assessed value$450,000

On the county assessor's site. Drives the supplemental estimate.

There's an HOA

Suggested cushion

$30,750–$58,750

Emergency fund (3–6 months): $18,000–$36,000
Maintenance (1–2% a year): $10,000–$20,000
Supplemental tax bill: $2,750

Estimates. The supplemental figure assumes about half a tax year remaining; yours depends on when you close.

What it grows to

Starting amount$25,000

Added each month$250

APY

Top high-yield accounts, 9/2026. Rates change.

Years5

After 5 years

$47,100

$6,496 more than the 0.37% national average

Yr 0
$25,000
$25,000
Yr 1
$29,074
$28,098
Yr 2
$33,314
$31,207
Yr 3
$37,727
$34,328
Yr 4
$42,320
$37,460
Yr 5
$47,100
$40,604

Top high-yield accounts, 9/2026. Rates change.

Setting it up

1Keep it in a separate high-yield savings account, not checking. Separate matters more than the rate.
2FDIC insurance covers up to $250,000 per depositor, per bank, per ownership category.
3Automate a transfer on payday. The money you never see is the money you keep.
4Name your buckets. Most banks let you create sub-accounts, and a labelled jar gets raided less.
5Watch the mail for the supplemental tax bill. It goes to you, not your lender.
6Recheck your homeowners insurance at every renewal. California premiums have moved a lot.
7Save first, then upgrade. Projects will still be there in six months.
8Once the cushion is full, extra principal on the mortgage is a reasonable next step.

Don't spend savings on a commission.

The flat fee comes out of escrow when you close. If your home doesn't sell, or you change your mind, you owe nothing — there's nothing to refund because nothing was taken.

See the plans

Based on a $1M San Diego home where the seller offers 3% to the buyer's agent. Applied to closing costs first. How much can go to you beyond that depends on your loan. Estimate only, not a guarantee.

How SelfCloze helps

Every other page on this site spends the money. This one doesn't. A cushion is the least exciting thing you can do with it and, in the first year of owning a home, often the most useful.

Questions people ask

How much should I keep?: Three to six months of essential expenses, plus one to two percent of the home's value each year for maintenance, plus whatever your supplemental tax bill is going to be. The calculator on this page adds those up for your numbers.
Where should I keep it?: A separate high-yield savings account, not your checking. Separate matters more than the rate — money in the account you spend from gets spent.
Is my money safe?: FDIC insurance covers up to $250,000 per depositor, per insured bank, per ownership category. Above that, split it across banks.
Should I pay down the mortgage instead?: Once the cushion is full, extra principal is a reasonable next step, especially at today's rates. Before the cushion is full it's usually the wrong order — a missed emergency costs more than the interest you saved.

Full service for $4,999, not $30,000.

Photos, pricing, negotiation, showings, inspections, Zillow Pro Agent — the whole job, done for you. One flat $4,999 out of escrow, whatever your home sells for.

Compare the plans