Where to put your Money while you Save for your Wedding
Clever ways to save
No matter how creative you get when it comes to cutting your wedding costs, your big day is still going to cost money. You may have decided to save for several years first or perhaps you plan to borrow some money to fund part of the wedding budget.
Either way, what you don't want is a debt round your neck in your first few years of marriage, so you need to set your wedding budget and then decide where to store the cash while you save up for your big day.
Saving for a Wedding
One option is to open a cashback current account offered by many banks these days. Every time you spend money using the card linked to your account, it triggers a small cashback payment. And given that you use your current account all the time, the money can quickly add up.
If your regular income is quite modest, an instant access savings account is a good way to put money aside for your wedding, especially if you need to break into the funds in an emergency. The interest rates on an instant access savings accounts are, however, quite low, so if you want to see your wedding fund grow quicker, you need to consider locking away your money for a time to get higher interest rates.
Get Higher Interest Rates with Fixed Term Savings Bonds
A fixed term savings bonds is one option and, as there is a penalty for early withdrawal, you have a great incentive to leave the cash alone, making sure that that the funds will still be there when you need them.
In return for parking the cash for a one or two year (if you are planning well ahead) term for example, you can get higher rates of interest. However, as with all standard savings vehicles, you do have to pay tax on the final interest payment that is added to your bond when it matures.
However you plan to save for your wedding, take a look at the different savings accounts on offer to help you both save and grow your cash ready for the best day of your life.