I have been debating lately on whether or not to set up sub accounts with ING. I have a “hardwood floor fund” account there, as well as one large emergency fund that I direct deposit a chunk of my paycheck into. The money that gets directly deposited in that account has many purposes: emergency fund, baby fund, new car fund, and retirement fund. I’ve thought about opening up a few extra accounts so that all the money would be separated and I would know exactly how much money I have for each area. Here are the positives and negatives on opening sub accounts with ING:
-Will have a separate dedicated emergency fund that is not to be touched unless it is a true emergency.
-We’ll have some money saved that I won’t feel bad about spending when we need a new car or to pull money out to deposit into our ROTH IRAs.
-I’ll know exactly how much we can spend on everything. For example, if I only have $6,000 that’s all I can spend on a new car.
-That’s more accounts for me to have to keep up with
-I’d have to set up the direct deposit to be broken down into the other accounts, and that would be a pain.
-I don’t like having a bunch of accounts open under my name just in case something happened to me.
Of course I am curious as to how other people have their accounts set up. How do have your savings account(s) set up? Do you have one for each category, or just one main account that holds all your extra money?