I just opened several additional savings accounts with my credit union of choice: alliantcreditunion.org. I think I'm going to ditch my ING accounts because I don't like Capital One as a company and Alliant CU already handles all our other banking needs.
Thanks, AJ, I didn't realize how easy it was to open additional accounts with my main bank!
Why do you need so many savings accounts? Not judging, just wondering.
We used the ING subaccounts combined with the easy automatic transfer to prepare for annual or other long-period expenses on a monthly basis: Property taxes* and insurance gets transferred monthly (automatically) as does "car stuff" - car insurance, and an allotment for estimated repairs/replacement (For example, I need to buy new tires soon.)
This method makes things easier for me mentally/emotionally. I know that when property tax time comes, we have a separate dedicated stash for paying it. I can look at the account, and know we have the correct amount of money "set aside." The main account goes up and down as income comes in, bills get paid, et cetera. Toward the end of the year, I can look at the main account and easily see that we have $xxxx to dump into a ROTH.
Really, subaccounts are a modern variant of the old "envelope system." Could it be replaced by judicious use of Mint or some other tracking system? Sure. Whatever works for you.
*because fuck escrow, that's why. Banks are constitutionally incapable of getting escrow right. Plus, we can strategically pay property taxes to stack (fed) tax deductions in alternating years. In 2012, we stack ALL possible deductions. We paid 2012 property taxes in January, and 2013 property taxes in December. Same with charitable contributions. Now doing a major garage cleanout for Goodwill, et cetera. Refi in 2012 instead of January. Max itemized deductions. In 2013, we'll take the standard deduction (and with a mini-moustache of our own!) The timing of the "fiscal cliff" is a bit unfortunate, but we've been benefitting using this system for quite a few years at this point. Without deduction-stacking, we were perpetually right below the standard deduction. With stacking, we are saving quite a bit in federal taxes every other year.