Like I've said before, I love DailyWorth. Here's an interesting article about different savings accounts.
Do you have different savings accounts for different reasons?
A: You need at least three active savings accounts.
Curveball fund. Automatically transfer at least 5% of every paycheck, to cover random expenses (a lapse of reason at a yard sale, a broken toaster).
Emergency fund. Ditto, but only tap this in a true do-or-die crisis. When they say, “Save three to six months' worth of living expenses,” this is where it goes.
YouNameIt fund(s). Set up at least one other account for a looming goal or project: a cushy reading chair for the bedroom, a holiday party (or getaway from the parties), adopting a child.
I only have an emergency fund, which I consider a fund for ANY type of emergency. It could be a potential job loss, unexpected bills, risen expenses and so on. Ever since reading DailyWorth, I feel like I'm the only one on the website who doesn't have multiple accounts.
Your turn: How many do you have? Do you feel like it's necessary?
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Makky's Mom says
August 13, 2011 at 3:38 pmWe have a few accounts.- our fixed expenses account that all our fixed expenses get paid from- our replacement car fund that gets $500/month added- our special/occasional expenses fund (think car repair, christmas expenses, birthday and other gifts, children's activities, summer vacation, clothing fund, life insurance, gardening, a small miscellaneous amount for unexpected expenses, etc… – this account gets $900/month added- hubby's TFSA acts as our Emergency Fund, which gets anywhere from $100-$500/month added- house maintenance fund – gets $50-200/month added- planned spending account for fun or frivilous expenses – gets whatever is left over to save but doesn't get money added every month- various RRSP accounts and RESP accounts
jpkittie says
August 14, 2011 at 1:33 amI have one account with 4 branches — our credit union account has 4 parts to it – one pays for property taxes/homeowners, one is Christmas Club, one is EF & the other is just savings (the just savings is our go to if we need money for an after school activity for dd or swim lessons or a little trip) We also have retirement savings – so I guess that makes 5 for us 🙂
Krystin says
August 14, 2011 at 7:06 amWe have 4 different accounts. Our Credit Union requires us to have a savings account, and I used to have those set up for 'savings' but it was too easy to transfer money out of them for random non-important uses, like splurging when we shouldn't. The ING Savings has become our major savings account. I also have a certificate at my credit union for untouchable savings for at least a year. I'm thinking of opening a Custom Club account like jpkitty for Christmas, or a vacation, or when we buy a home, Home Improvement.
Kevin says
August 14, 2011 at 9:31 amI have several, all of which are automatically funded throughout the month.** Insurance: This covers my 6 month car insurance payments and annual registration costs. It is set up so that when the bills roll around, it is fully funded to pay those bills in full with a slight buffer to account for increases.** Maint: This covers all maintenance expenses for my car, oil changes, etc.** Summer: I only get paid 22 times a year (every other week), this is a special account where I put aside about 15% of each paycheck to have money for the missing 4 checks most normal people would get. Then during the summer, I divide the amount in there by 4 and pay myself every other week from this account.** Poker: This account is strictly for money set aside from poker — I've never funded this account, it's all money earned through playing.** Emergency Fund: This account is for all big emergencies like hot water heaters, roofs, job loss, etc.** Misc: This is for shopping, dates, fun stuff. Which this account is empty, I can't do anything.** HSA: This is funded through my work… it's for health related expenses and emergencies. At this point, it almost covers my annual deductible but not quite… so in a major emergency, I would need to pull a little from the other emergency fund.** Checking: I stage everything from this account. All money is deposited into it and then moved to the various savings account. All bills are paid from here.LOL, written out it looks confusing but it works for me and allows me to keep the funds in distinct groups. So I know I never spend my car insurance savings on something else.
Michelle Parker says
August 14, 2011 at 5:09 pmWow everyone seems so organized! I guess I really need to start working on this. I feel so behind.
Anna says
August 15, 2011 at 3:21 amWe have a few different savings accounts and in different banks. I think it's important to establish relationships with as many banks as you can so if/when you need a loan, you can really shop around. Also! I HATE banking fees and I will definitely going shopping for banks with the best deals. State employees credit unions are great. I'm a huge fan of ING too though I'm a bit worried since they just changed hands.
Michelle Parker says
August 15, 2011 at 3:57 am@Anna, that's a good idea! I belong to a credit union, so my rates are pretty low.
South County Girl says
August 15, 2011 at 4:34 pmI have a ton!We break up our annual bills into monthly amounts so we have savings accounts for all of those…plus our emergency fund, Retirement, Vacations, etc.I use ING Direct because its simple and I get a small interest rate "reward" for saving as I go along.
Stephanie says
August 16, 2011 at 4:29 amMy husband and I had only one savings account (not counting retirement savings) for the longest time. But now the emergency fund is in an ING account (higher interest rates, plus the transfer takes a couple of days so it's a tad harder to access) and a curveball fund at the same bank as the checking account.