Wedding Savings vs CD account

CDs generate next to no interest and you usually can't touch them for the term of savings. If you have all the money you need for the wedding, set it aside and pay it out as you need deposits. You're barely a year out, so you will need a good chunk of your cash for deposits.

I agree with Janeen - a CD is not right for you. Check out your local credit unions, as they often have higher interest rates in their savings accounts than normal bank accounts.

Thanks for the tip @rebecca, @janeen. I was looking online and Ally bank has a 1% APY. No maintenance fees. Anyone have reviews on this bank?

CDs are a set amount and a set term, so you need to have the money upfront to lock into the CD, you can't add to it as you save. Unless you find a "flex" CD or something like that that does allow you to contribute to it, which aren't that common. For saving money you want a savings account. You can also pay vendor deposits out of it without breaking the term of a CD and paying a penalty. You really aren't going to make much on a short term CD as Janeen said as the rates are garbage, and not worth it.

I personally have never dealt with Ally but they are a common online financial institution so I'm pretty sure they're reputable.

Ally bank is who I had my car loan through, they were very hassle-free and I had nothing but good interactions with them when I had my loan.

CD Would not be good. It locks up your money and you can't touch it.

1% on $10,000 is only $100. Not worth locking up $10,000 for. Like others have said, if your budget is $10,000 it will be spent over the next year on deposits, dress, tuxes, decor... And then the rest finalizing payments.

I have my car loan through Ally as well and while I hate them for taking my money, I have no complaints.

But I second everyone else. Definitely do NOT open a CD.

FH and I use Ally for checking and savings. Ally has a no-penalty CD with a great interest rate, so you're not locked in to a term with a penalty for early withdrawal. But like Janeen said, you're not going to be sitting on this lump sum for the whole engagement. You'll need to pull money out quite often for deposits, so it doesn't make sense to open a CD just to pull all the money out to make a deposit, then open another CD with the remainder. It's not like a checking or savings where you can make withdrawals as needed. It's either all or nothing.

Ally savings accounts have a great interest rate too, so I'd recommend that.

Thanks so much ladies! This really helps.

Ally is fine, I would just look into their policies on withdrawing money. I have no experience with them but my friend uses them and I vaguely remember her saying something about the there being restrictions on the withdrawing of money.