How to Allocate Savings Accounts

Interest works the same whether you have one account or multiple accounts because it's just multiplication. For people who don't mind tracking and enjoy the simplicity of just having two accounts checking and savings, that method works perfectly fine. However, there is a behavioral psychology principle that says that once you kind of put something in a place with a name on it, i.e. a savings account, you are to some extent less likely to utilize those funds for something else.