Does anyone do ING subaccounts?

[rosarugosa]

I think I would like to do this. My obsessively organized brain likes the idea of different allocations in their own designated buckets. But I'm a bit put off by the fact that (at least if I understand correctly) one is actually opening several different individual savings accounts, as opposed to one account, with designated categories within the account. I would be interested to hear from others who are doing the sub account thing with ING or other banks, if you are willing to share your experiences.

[Rosemary]

I tried this - but got an email from ING reminding me of the limit on transfers out of savings accounts. It was kind of complex to manage, but I was trying it as a budgeting tool. I had to turn off all my transfers and I'm going to revise my system next month.

[Kestra]

I have ING, though it's in Canada so it may be a bit different. I've almost always done different accounts, or sub-accounts. The way it works, I'm not sure if there's any difference. I use the same member # to log in, then look at all my different accounts on the one screen. The different accounts have different numbers and you can give them names. I've never heard about the limit thing that Rosemary mentions, and I transfer around fairly frequently. The only time I had a warning from them what when I moved money out of and into a mutual fund too rapidly. Otherwise, I haven't any issues. I really like ING, and this particular feature is handy if you like the different buckets, which I do.

[Madsen]

I recently learned how to create sinking funds in quicken using the 'savings goals' feature, and that's been real handy. You can even set up the transfers automatically like any other bill, and your main balance changes accordingly. Right now I've got ones for vacation, car repair/replacement, property tax, april 15th tax, and a new chair I want.

[Reyes]

I have about a dozen sub accounts. I have never received notification from ING regarding a limit on transfers. I think the sub accounts as my electronic cash envelope system:-)

[TVRodriguez]

I have several ING accounts, and while they are technically separate accounts, I log in with one customer number or id and all my accounts show on one screen. I give each its own nickname, and that way I know how much I have in each bucket at a glance. My CDs (laddered) are also on the same screen, which I like. There is a limit on transfers out of each account (I believe it's 3/month), but there's no limit on deposits, so I just do separate deposits from my "real" bank account directly into the separate ING accounts. For example, every payday, $xxx goes from my real bank into the Real Estate taxes account, $xxx into the Homeowners Insurance account, $xxx into Emergency Reserve account, etc. I hardly ever need to transfer out more than once in a while anyhow. The only way a limit could be a problem is if you want to make one single transfer from your real bank to one main account and then transfer separately from there to your "sub" accounts--that could be a problem, and the way around it is to do it in separate transfers from your real bank directly into the sub accounts.

One nice thing is that even though they are separate accounts, you get one 1099-INT at the end of the year to report the interest income on your taxes, and they add up the totals for you from all the accounts you have at ING under a single SSN.

I've used this system for at least 5 years, and I find it very easy.

[shadowmoss]

I have 2 sub accounts, one is my carrot at the end of the debt-repayment stick. I put a little in each payday (once a month) to at least feel like I'm going to get to go there (hike the AT) some day. Realistically, if I need the money it's as easy as doing an immediate transfer and it's back in my main account.

[dado potato]

ING was competitive at one time in the past. However I don't believe ING pays interest on savings like Sallie Mae Bank does (currently 1.1%). SLM does not offer "separate" accounts like ING, but one can set up a spreadsheet to allocate savings to various purposes, to one's heart's content.

[rosarugosa]

Thanks for the responses. Dado, I think I've come to the same conclusion, that I can use a spreadsheet and create my own subaccounts/categories for our savings account, similar to the budget categories we have for money that flows into our checking account. I'm actually having quite a bit of fun with my spreadsheet :)

[ljevtich]

just so you know, ING just was bought out by Capital One. While I believe it should not change much, it is a shame that it has happened. I am earning 1% on the savings but I am sure this will change soon. Sigh, not too many places to put money for savings these days...

[rosarugosa]

I've actually gotten offers in the mail from Capital One over the past year for a savings account that pays more than ING. It pays 1.1%, plus a quarterly bonus of 10% on interest earned (with a couple of conditions). I had been thinking of changing over, but was honestly too lazy. So I'm cautiously optimistic that the change in ownership will be OK.

[kib]

Hmm. I have accounts with both. The cap 1 account that pays halfway decent interest is not a checking account, it's a savings account. None of the bill pay features or atm card or anything like that. I can't believe ING got bought out. :(