How and Where to Start a Wedding Savings Account

A wedding savings account isn't just a place to park your money devoted to the event. If you choose wisely and employ some smart strategies, it can earn you a significant chunk of extra cash as you're planning your wedding budget. Storing the funds you've set aside for your wedding separately can make it easier to spot every payment as it goes through. Then, you can easily transfer that info into the The Knot budget tool, where you can track how your expenses stack up against your budget for each line item as well as what you paid. (Using this tool is one of our favorite tips for staying on budget.)

While opening a standard savings account attached to one of the top credit card for wedding expenses is a great option to make use of points and rewards, opting for a high-yield savings account for your wedding will make your budget grow with competitive interest rates. We tapped NerdWallet personal finance expert Elizabeth Ayoola to offer some intel into why high-yield savings accounts are often the best joint savings accounts for a wedding, plus recommended bank options that have her stamp of approval.

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In this article: Wedding HYSA Definition | How to Choose | Best Wedding Savings Accounts | How to Get Started

What Is a Wedding Savings Account?

A wedding savings account is any bank account shared between you and your fiancé in which the funds stored in the account are dedicated solely to wedding expenses. High-yield savings accounts are popular choices for couples to store their wedding capital, since they offer higher interest rates than typical checking or savings accounts. In layman's terms: HYSAs shield your money from inflation and help it grow faster (so you'll have a little extra to splurge on that dream caterer you have your eye on).

"High-yield savings accounts can be useful tools for people who have a short- or medium-term wedding savings goal. Reason being, money in a high-yield savings account is liquid, so couples have easy access to withdrawals for wedding expenses," says Ayoola. "That said, if saving for a wedding is more of a long-term goal, couples may consider exploring other options, like a taxable investment account where the money has time to compound. Ultimately, couples want to choose the savings vehicle that is going to ease their financial burden come wedding time."

How to Choose a High-Yield Savings Account for a Wedding

Don't choose the first high-yield savings account you see to store your wedding money. Each one has a different set of stipulations. Here are a few things to look for as you select the best savings account for your wedding:

High Interest Rate and APY

Yes, the phrase "high interest rate" usually makes your stomach drop, but in this case, it's a good thing. A competitive interest rate and APY are the most obvious indicators of a good high-yield savings account, because the higher these two percentages, the more money you earn. The interest percentage is how much money you earn each month, while the annual percentage yield (APY) is how much you earn in a year. APY takes the interest you earn each month and compounds it, so you can see how much interest you can earn on your interest. An APY above 4% is considered high, so keep an eye out for HYSAs that meet those parameters.

Mind Minimum Balances and Maintenance Fees

While it's tempting to immediately go for the HYSA with the highest APY, it's not always the best choice for you. "Ultimately, it's essential consumers remember that just because a high-yield savings account offers the best interest rate, it doesn't mean it's an ideal fit for their financial situation," says Ayoola. "It may also be counterproductive to jump at an account offer because rates are high without considering the overall tangible and intangible cost of maintaining the account." That said, there are sometimes monthly maintenance fees to keep the account open and operating, which will eat into your returns. These fees can often be avoided if you meet the required minimum balance, but because you might be using this money to pay off vendors on a rolling basis, you risk dipping below that minimum. Many high-yield savings accounts don't have minimums, but double check before you make your choice.

Deposit or Withdrawal Turnaround Time

One note about high-yield savings accounts: They can't be connected to a credit card. They exist as their own entities and you must transfer funds to your regular bank account before they can be used. So when you make a withdrawal, there's a short transfer period to account for. On average, this spans around three days. Likewise, it'll take a day or two for deposits to show up in the account. Ensure you plan accordingly for this lag time when considering vendor payment deadlines.

Customer Service Accessibility

A 24-hour customer service department is the ideal situation for a HYSA and it's something to keep in mind as you shop around for the best savings accounts for your wedding fund. Having constant help on hand to assist you through any kinks makes a big difference.

Look for Longevity

Budgeting for and financing a wedding isn't a decision to take lightly, and you should always keep long term financial health top of mind when choosing where to store your money. All things considered, select a HYSA that could serve you well in the long term, whether you reuse it for a house fund, travel fund or other life goal. Keep in mind those aforementioned maintenance fees and minimum balances. Also, if you're looking to kick your wedding savings up a notch, consider adding a cash fund to your The Knot wedding registry to put toward postwedding milestones.

Best Accounts for Wedding Savings

"Creating a joint high-yield savings account as a couple can help streamline your wedding savings goal," says Ayoola. "It can also be exciting to see your money grow as a result of your joint efforts and help create financial intimacy." These are Ayoola's top recommendations to create a savings account for your wedding.

SoFi Bank Checking and Savings

This account has a competitive APY at 4.5%, along with no account-maintenance fees and overdraft fees. That means if a payment is larger than the sum of money in the account, you won't be penalized. Plus, there's no minimum balance requirement and a $300 signup bonus. There's also a bundled-in checking account, so there are less barriers as you pay your vendors.

CIT Bank Platinum Savings

The CIT Bank Platinum Savings comes with a whopping 4.85% APY. There's a $5,000 minimum balance requirement, though, to score that rate, so keep that in mind as you transfer money to make payments. There are no monthly service fees, and there's a convenient app to keep track of your spending, so you can easily toggle between your wedding savings account and, say, scouting out budget-friendly wedding pros on The Knot Vendor Marketplace and brainstorming ways to save money on your wedding.

American Express High Yield Savings Account

The Amex HYSA has no minimum balance, so you can start receiving money back at a 4.25% APY with even just a dollar in the account. Where this account really shines is its easy app access and customer service. Representatives are available 24 hours a day to help you work through any snafus.

UFB Portfolio Savings

At 5.15% APY, this account has perhaps the most competitive rate around. This is a great option to consider if you're aggressively saving for a wedding in the short term, since it'll increase your capital the fastest. The account also has no minimum balance or maintenance fees.

Capital One 360 Performance Savings

No fees, no minimum and a 4.25% APY. Capital One is a solid option for a high-yield savings account for your wedding. You can easily deposit checks and make bank transfers within their app as well as link existing Capital One accounts for ease of use.

How to Start a Wedding Savings Account

"The beauty of high-yield savings accounts is that they can maximize your money's growth potential, thanks to compound interest and the low risk nature of the account," says Ayoola. When you're ready to get started on finding a wedding savings account that works for you, follow these steps:

1. Begin your search as soon as you can after your engagement. The earlier you start a high-yield savings account, the more money you can earn toward your wedding.

2. Decide on your ideal savings-account stipulations. "Choosing a savings account as a couple is an opportunity to explore banking needs and preferences together," says Ayoola. "Start the process by listing out your banking must haves and then listing deal breakers."

3. Compare your options. Once you've mutually decided on what makes sense in a savings account, compare options from different banks side by side.

4. Decide on a contribution cadence. Determine if, when and how often you will be adding money to your HYSA, ensuring it's fiscally feasible for the both of you. "Once couples check their budget to see how much they can afford to contribute and how often, it can be a smart move to automate those savings," says Ayoola.

5. Choose an account and set it up. You can apply for any of our recommended HYSA options online and the application process will usually take just a few minutes. Include both of your names on the application and wait to be approved by the bank.

6. Keep the account as full as possible. Once your account is open, transfer your wedding funds and keep the account as robust as you realistically can. "The more savings a couple has, the more interest they'll earn passively for future wedding expenses," Ayoola says.

Please note: The Knot and the materials and information it contains are not intended to, and do not constitute, financial or tax advice and should not be used as such. You should always consult with your financial and tax advisors about your specific circumstances. This information contained herein is not necessarily exhaustive, complete, accurate or up to date and we undertake no responsibility to update. In addition, we do not take responsibility for information contained in any external links, over which we have no control.