Yes, fay is a Scrabble word!
...and is worth 9 points in Scrabble, and 8 points in Words with Friends
fay
Noun
1. A small being, human in form, playful and having magical powers
What Scrabble words can I make with the letters in fay?
2 Letter Words
Noun
1. A small being, human in form, playful and having magical powers
2 Letter Words