I keep the money in an ING account, with the rest of my savings. I use a spreadsheet as an "account" manager, with each line of the sheet being an "account" dividing my ING savings up into a series of accounts without the problems caused by sub-account logic as supported by ING.
Also good logic, for those persons still trying to get started. An emergency fund doesn't have to be separate from your other savings. In fact, if your account has tiered interest rates that vary with the amount deposited, it makes more sense to keep it aggregated. Having an emergency fund should
imply the discipline required not to drain it, even if it's lumped in with your other funds.
We'll see how good my discipline is as time goes on. So far I'm only pulling money out of my ING account under 2 circumstances. I keep money destined for my primary debit card account in ING to generate interest, then transfer the next few planned purchases worth of funds to the primary debit card account every other week. Some bills are attached to that card. (VOIP phone, Japanese language training, on-line storage, etc.) The second case was when I bought clothing with money set aside for the purpose. I simply transferred it to my Electric Orange and used the Orange debit card to pay for my clothing.
Also, I am crediting the interest on the account to the emergency fund line. Not much, but more than zero.