Online Banks Make Saving for Goals Easy!

I bank with ING Direct as they have a fantastic website for accessing accounts, free bill pay, free direct deposits to anyone's account, and best of all: no checkbook!

You can also use them to separate out your savings accounts for different purposes. You can open multiple savings accounts (no minimums or fees) and label them. Here is the list of accounts that I have:

• Emergency Fund
• Rental Deposits
• Vacation Fund
• Irregular Bills

This makes it very easy for me to see where I stand on all of the above. I can tell quickly if one is too low and act accordingly. I (will) rent out rooms in my house and require 1 month's rent on deposit. I put a little away each month to cover my vacation incidentals. My "irregular bills" account is used for my HOA fees (due every 6 months) and water bill (every 2 months) so I will always have the right amount when due.

I used to track all of this on a spreadsheet but it got too confusing. I decided separate accounts is the way to go so I don't need to be at my personal computer to see where I stand. I also don't have to divide up the interest earned on any of these each month since they all get their own deposits.

I highly recommend using an online bank for savings goals since they have no fees and no minimums to maintain. They also have the best interest rates out there and also offer CD's for more long term saving. If you want to sign up for ING Direct, the best online bank I have found, please click here.

Happy Saving!