What Is a Wedding Savings Account?

Planning a wedding can be exciting but it can also turn up the pressure on your budget. Opening a wedding savings account is something you might consider if you’d like to set aside money for the big day. Choosing the right account to save for wedding expenses matters for ensuring that you have convenient access to your money while still earning a great rate. Here’s how a wedding savings account works and what you should consider.

A financial advisor can help you create a financial plan to save enough money for your wedding and other financial milestones.

What Is a Wedding Savings Account?

A wedding savings account is designed to hold money for wedding expenses. You can open a this type of account at a bank or credit union, make regular deposits to it, then withdraw the money as needed to pay for wedding costs.

Wedding savings accounts can earn interest, although the interest rate will largely depend on where it’s opened. Like other savings accounts, a wedding savings fund may limit you to six withdrawal transactions per month. Exceeding that number could trigger an excess withdrawal fee, per Regulation D.

If you’ve linked your wedding savings account to a checking account, you can transfer funds between them as needed. For example, if you need to put down a deposit on the venue, you can move money from wedding savings to checking to cover that expense.

Should You Open a Wedding Savings Account?

Setting up a special savings account for wedding expenses can be a smart idea if you’d like to cash flow your wedding as much as possible. Committing to a wedding savings plan can lessen the need to rely on high-interest credit cards, personal loans or financial gifts from friends and family to pay for the special event.

Keeping a separate bank account can also make it easier to track spending for a wedding. You can review your savings balance and transaction history to see how often you’re withdrawing money or transferring it to checking to cover expenses.

Wedding savings accounts can also earn interest, which is a nice added bonus. The higher the rate and annual percentage yield (APY), the more interest you could earn. And you can also save for honeymoon expenses in the same account or repurpose it for a different financial goal once your wedding date has come and gone.

How Much Should You Have Saved for a Wedding?

The exact dollar amount you will need to save for a wedding can depend on your personal wedding budget and the type of celebrations you plan to have. If you have not yet outlined your wedding expenses, making a budget can help you determine how much you need to save and how to break that savings goal down monthly.

Consider these common wedding expenses for your budget.

Venue deposits and rental fees
Photography fees
Catering services
Music and entertainment
Officiant’s fee
Flowers
Favors and decorations
Honeymoon expenses

Once you estimate your costs for each expense in your wedding budget, you can define your savings goal. So, say that your budget adds up to $20,000, and you are planning to get married 20 months from now. To reach your savings goal, you would need to save $1,000 each month.

Breaking down your wedding expenses that way can help you determine whether your savings goal is realistic. If you do not have an extra $1,000 in your budget to save each month, for instance, you would need to either adjust your savings target or find ways to cut spending to make up the difference.

Where Should You Save Money for Your Wedding?

A couple creating a wedding savings account.

A wedding savings account can be a good place to save for a wedding. The best wedding savings accounts allow convenient access to your money, while allowing you to earn interest and pay minimal fees.

With that in mind, there are several possibilities for opening a savings account for a wedding. Here are six common ways to hold wedding funds:

Traditional savings. A traditional savings account at a brick-and-mortar bank can be a safe, secure place to keep your wedding funds. However, you may not earn the best rates and you’re more likely to pay a monthly fee.
Specialty savings. Some banks offer specialty savings accounts that are designed to help you save for a specific goal, such as wedding expenses. You can check with your current bank or credit union to see if goal-focused or wedding savings accounts are available.
Online savings. Online savings accounts are offered by traditional and online banks. These accounts can usually only be opened and managed online, versus at a branch. Online savings accounts may offer special features or benefits, such as a $0 monthly maintenance fee or a higher APY.
High-yield savings. This account is what it sounds like: a savings account that offers a competitively higher yield. It’s possible to find these accounts at brick-and-mortar banks, though you’re more likely to find them at online banks.
Money market savings. These combine features of savings and checking accounts. They can earn interest like a savings account, but you might be able to write checks or use a debit card to make purchases from your savings balance.
Certificate of deposit (CD). A CD lets you lock in a fixed interest rate for a set period, often with higher returns than a regular savings account. It’s a good option for wedding costs you won’t need to access right away, like a honeymoon, since early withdrawals usually come with a penalty.

How to Choose a Wedding Savings Account

There are four things to keep in mind when comparing accounts:

Interest rates. Compare the interest rate and APY for the best wedding savings accounts. Remember, you may find the best rates at online banks.
Fees. Monthly maintenance fees and other fees can detract from your efforts to save. Instead, consider a low-fee savings option, which you can find at many online banks.
Minimum deposit. Savings accounts can have minimum deposit requirements to open and minimum balance requirements to avoid a fee. It is important to check those requirements when selecting a new savings account so you can be they work for you.
Access. When saving for a wedding, you will need to be able to take money out when it is time to make payments. Consider how you will be able to manage and access your money (i.e., online banking, mobile banking or at a branch). Also, consider whether a savings account comes with an ATM card in case you would like to be able to withdraw cash.

Benefits of Creating a Wedding Savings Account

There are four common advantages of a wedding savings account:

Budget: It makes it easier to budget your expenses when you have a bird’s eye view of your accounts, letting you know exactly how much you have and giving you the tools to increase your savings.
Separation of funds: You can keep your wedding savings separate from other types of savings, helping to ensure you do not accidentally spend your wedding fund or bills or other expenses.
Interest: With a high-yield savings account, you can earn interest on your savings, helping you reach your goal that much faster.
Motivation: As you see your wedding savings increase, it can spur you on to continue saving and even increase the contributions to your account.

Key Things to Consider

Before you open a new wedding savings account, here are three general factors to consider:

Interest rates: Be sure to compare interest rates from multiple banks and credit unions to ensure you have the highest interest rate possible for the kind of savings account you need.
Access: Check to see how you will be able to access your funds. Is there online access? What about a mobile-app? Is it user-friendly, and does it have all the features you need, such as mobile check deposit? Do you prefer in-person help, or do online services work for you? These questions can help you determine which account will give you the access you need.
Joint account option: If you want your fiancee to have access to your account, look for a bank or credit union that offers a joint bank account. This gives each party equal responsibility and control over the account, allowing your future spouse to spend and save using the same account.

Bottom Line

Closeup of a coin jar labeled wedding, representing a wedding savings account.

Opening a wedding savings account could make sense if you’d like to earmark cash in your budget to pay for wedding costs. While you could use credit cards or loans to pay for a wedding, starting out your married life in debt may not be ideal. Researching different bank accounts for wedding expenses can help you to find one that best fits your needs and savings goals.

Wedding Saving Tips

Consider talking to your financial advisor about how to plan for wedding expenses and whether you should open a wedding savings account. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
An interest-bearing checking account is another option for holding money that you plan to use for wedding expenses. You might consider that type of account if you’d like to be able to write checks to cover deposits or use a debit card to make wedding purchases, without having to first transfer funds from saving. As with savings accounts, it’s helpful to check the interest rate you could earn and the fees you might pay when choosing an interest checking account.