Help!! Multiple Savings “Baskets”?

I really love the concept of multiple nest eggs, or “baskets”, as David Bach refers to them (will do a review of his book Smart Couples Finish First later this year).  Other bloggers have made real this concept by either

1.) creating a spreadsheet for a single savings account, in which they allocate the money in the account to various different savings goals

or

2.) opening multiple accounts, one for each goal.

I use both a brick and mortar bank and an online bank, ING.  Get Rich Slowly shows you step by step how to set up multiple ING savings accounts (great screen shots for those unfamiliar with ING) and  The Simple Dollar describes this practice as well.  Right now I have 3 ING accounts: checking, Emergency Fund, and a Savings account.  I am contemplating creating additional accounts for each of the many different goals I have, but am a little hesitant to open so many accounts, but I have a lot of questions and could really use some advice!

  • If you have multiple accounts, how many do you have?
  • What happens if I reach my savings goal and want to empty the account….can I change the name later to reflect a new goal?
  • How many accounts are allowed? I’d like to add [6] more accounts: puppy fund, car savings account, household, short term goals, long term goals, extra retirement.
  • Are there tax consequences to having many accounts at the same institution?
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