Guide to Wedding Saving Accounts
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What Is a Wedding Savings Account?
How Does a Wedding Savings Account Work?
Examples of Wedding Savings Accounts
Traditional Savings Account
Specialty Savings Account
High-Yield Savings Account
Money Market Account
Certificates of Deposit (CD)
What Savings Plans Suit Wedding Savings?
APY Though interest is typically added monthly, an APY tells you how much you can expect to earn on your wedding funds over one year. Generally, the higher the APY, the faster your savings will grow. Balance requirements Some savings accounts require a minimum deposit to open your account, as well as an ongoing minimum balance to avoid fees. You’ll want to be sure you can meet these requirements. Fees Some savings accounts charge monthly account fees, fund transfer fees, ATM fees, and other fees, which can detract from your efforts to save. Even if an account offers a high APY, it may not be the best deal if you’re going to have to pay regular fees. Access Consider how you’ll be able to access and manage your wedding funds, such as via online banking, mobile banking, or in-person banking. If you want the option to withdraw wedding funds as cash, be sure the account comes with an ATM card and access to conveniently located, and fee-free, ATMs. Federal insurance You’ll want to verify that the account is protected by the federal government through either the FDIC or NCUA.
What to Know About Opening a Wedding Savings Account
Tips on the Amount to Save for Your Wedding Expenses
Other Wedding Savings Tips
Cut out some monthly expenses. Examine your monthly bills to see which expenses you can cut — or at least pause — while you’re saving for the wedding. You can then direct that money into your wedding savings account. Make it automatic. Consider setting up an automatic transfer of a set amount from your checking to your wedding savings account on the same day each month (perhaps on the day your paycheck clears). Or, ask your employer to split your direct deposit so that a certain amount goes into your wedding savings fund. Take on some extra work Consider picking up a side gig (like working for a food delivery or ride-share service) or doing some freelance work. You can then put all of your extra earnings right into your wedding account. Try a spending freeze. To give your account an occasional boost, you and your partner might agree to not buy any nonessential items for a week (or possibly even a month) and add all the money you saved to your wedding account. Take advantage of windfalls. If you receive a lump sum of money, such as an engagement or wedding gift, bonus at work, or tax refund, consider putting it directly into your wedding savings account.
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