The Secret to Saving for an Engagement Ring is to Use a Certificate of Deposit, According to a New GoBankingRates.com Report

0311_NAT_Business“One of the biggest purchases you’ll make in your life is an engagement ring – [and] it’s a sizable expense,” says Nicholas Pell, GoBankingRates savings expert. Pell adds that the hefty cost makes “long-term, strategic planning about how to buy an engagement ring key.”

The average cost of an engagement ring in 2013 is between $4,610 and $4,940, according to the WeddingStats.org. However, these numbers aren’t ‘one-size-fits-all.’ Pell recommends that anyone looking to buy an engagement ring should plan on spending roughly three months’ worth of their salary and explains how a certificate of deposit (CD) is the number one solution.

In the new GoBankingRates report, Pell explains how putting funds in a certificate of deposit keeps money out-of-reach and safe from spending, while also earning interest – key points when saving up for an engagement ring. Savers planning to ‘put a ring on it’ a little sooner may also consider saving money in a money market account. “If you’re looking to propose within a shorter time frame, it’s much better to go with a money market account,” advises Pell, as money market accounts keep funds more liquid while still earning high interest rates.

To learn more ways to save up for an engagement ring, click here.

GoBankingRates.com is a national website dedicated to connecting readers with the best interest rates on financial services nationwide, as well as informative personal finance content, news and tools. Go Banking Rates collects interest rate information from more than 4,000 U.S. banks and credit unions, making it the only online rates aggregator with the ability to provide the most comprehensive and authentic local interest rate information.

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