I have an online savings account through Discover Bank, currently earning 2.0% interest. It is much better than the piddly amount offered by my credit union/bank savings.
I keep all my savings funds in one account and use a spreadsheet to keep track of my categories. I take advantage of a monthly automatic transfer (out of sight…out of mind). My categories match up with my family’s needs and can be easily expanded or changed. I include areas such as Christmas, Emergency, Infrequent, Insurance, Investments, Taxes, Special Projects, Travel, etc.
I do the same thing! I automate a monthly total to be transferred to an online account if I need for emergencies, vacation, what I need. This way has been so much more helpful to me because I don’t touch it -out of sight, out of mind. When I do see it – I’m happy I haven’t touched it 🙂