New High Interest Savings Accounts Help Ohio Homebuyers

Posted on April 16th, 2024

The Ohio Homebuyer Plus program helps Ohioans save for a down payment on the purchase of a primary residence.  Ohio residents aged 18 or older qualify, and you don’t have to be a first-time homebuyer.

The program created new tax-advantaged savings accounts for Ohioans. The savings accounts pay an enhanced savings rate based on the net premium interest rate available through the treasurer’s office.  The enhanced rates are above-market interest rates that help Ohioans save more.  Interest earned is excluded from Ohio income tax. Furthermore, contributions up to $5,000 per person per year may be deducted from Ohio taxable income.

The funds must be used towards a down payment or closing costs on the purchase of a primary residence. The money cannot be used towards a vacation or rental home purchase, or to purchase land.  Withdrawals that are determined not to be eligible may result in tax obligations. The homebuyer is responsible for maintaining appropriate documentation supporting the use of account funds.

The savings accounts must be used within 5 years of account opening with a maximum balance of $100,000.  There are no income limits, anyone can open an account and start saving.  Married couples cannot open a joint account but can each open individual savings accounts.  Each account has the same $100,000 maximum, which can help those who are motivated save even more toward their down payment.

The Homebuyer Plus savings accounts are available through participating financial institutions. A list is available on the Ohio Treasurer’s Website, and the list continues to be updated.