Sub account mean

A sub-account is a type of account that is created and maintained by an individual or organization to manage their financial transactions and investments. It is a more specific and detailed account than a general-purpose account, which is used for a wide range of financial activities. Here are some key points to understand about sub-accounts:

1. Purpose: Sub-accounts are created to segregate and categorize specific financial activities or investments. They help individuals and organizations to manage their funds more effectively and transparently.

2. Structure: A sub-account is a part of a larger account, such as a bank account, investment account, or brokerage account. It operates within the framework of the primary account and is subject to the same rules and regulations.

3. Functionality: Sub-accounts provide additional functionality to the primary account. They allow users to track their expenses, investments, and savings goals more accurately. They can also be used to set up recurring transactions, automate savings plans, or allocate funds for specific purposes.

4. Examples: Common types of sub-accounts include savings accounts, checking accounts, investment accounts, and retirement accounts. For instance, within a brokerage account, an individual may have sub-accounts for different types of investments, such as stocks, bonds, and mutual funds.

Overall, sub-accounts help individuals and organizations to organize their financial activities and make their financial management more efficient.