What is the difference between a primary account and a sub-account?

Your main bank account is often called your primary account, while a sub-account is an “account within an account.” It’s possible to make it so only particular people have access to this account, or that it’s only used for specific purposes. Sub-accounts can hold funds, just like a primary account. It’s possible to have more than one sub-account.

What is a sub account?

A sub account is spawned from and linked to a primary account. These separate accounts could house data, correspondence, and other useful information or contain a balance of funds that are kept under safekeeping with a bank . In general, each sub account is created for a specific purpose and might only be accessible to a particular person.

How do sub-accounts work?

To see sub-accounts in action, let’s take a look at an Expense account example. Expense sub-accounts show a business exactly how much they’re spending on each group of expenses, like insurance, payroll, and cost of goods sold. For example, your client might have multiple insurance policies they pay for each month.