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I want to use an envelope system and categorize my expenses. So lets say I have 3 checking accounts for:

  • Grocery
  • Restaurant
  • GAS

... each will have its own debit card. I can write a label name for each debit card on the back, so I know which one is which.

But online, when I look at the checking accounts, I want an easy way to know which account is for which category, instead of remembering the account numbers.

So the question is: Does any bank provide ability to "label" your checking account online? Or like add a description to each of your checking account, so you can easily differentiate?

Thanks
Amit

Chris W. Rea
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FatherFigure
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3 Answers3

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The straight answer is 'yes'. Our checking accounts are named, Joe,Jane,J2.0(the kid), and Joint. I believe most banks allow this naming in light of the ease of use for online banking.

But. Each bank has its own rules for how it calculates fees for checking accounts. My gut says you are making thing more complex than needed. You are likely going to be charged for having those accounts. My wife and I have fees waived from a combination of direct deposit and minimum balances, what will your bank charge you for three accounts?

Most envelope type systems are virtual, the $1000 in your checking account is placed in multiple envelopes to match your budget. You'll have more categories than the three you mention, and will end with 10 or more envelopes, but you don't want 10 checking accounts, free or not.

JoeTaxpayer
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You can use mint.com or other aggregation services, and label the accounts there (regardless of the banks' ability to allow labeling, which IMHO most of them have).

But it seems like a very inefficient approach. Why do you need a separate account per type of transaction?

Using mint.com allows you managing budgets and tracking spending, on all the accounts combined. Seems to me like a pretty decent envelop system implementation, without the need to open tens of checking accounts. I'm sure other aggregation services allow that as well.

littleadv
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2

ING Direct offers the concept of sub-accounts which might be what you are looking for.

MoneyCone
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