diff --git a/app/scripts/keyrings/hd.js b/app/scripts/keyrings/hd.js
index a852c9d29..61df8f28e 100644
--- a/app/scripts/keyrings/hd.js
+++ b/app/scripts/keyrings/hd.js
@@ -5,7 +5,9 @@ const ethUtil = require('ethereumjs-util')
 const type = 'HD Key Tree'
 const sigUtil = require('../lib/sig-util')
 
-module.exports = class SimpleKeyring extends EventEmitter {
+const hdPathString = `m/44'/60'/0'/0`
+
+module.exports = class HdKeyring extends EventEmitter {
 
   static type() {
     return type
@@ -28,7 +30,7 @@ module.exports = class SimpleKeyring extends EventEmitter {
     const seed = bip39.mnemonicToSeed(mnemonic)
     this.mnemonic = mnemonic
     this.hdWallet = hdkey.fromMasterSeed(seed)
-    this.seed = bip39.mnemonicToSeedHex(seed)
+    this.root = this.hdWallet.derivePath(hdPathString)
   }
 
   serialize() {
@@ -39,9 +41,15 @@ module.exports = class SimpleKeyring extends EventEmitter {
   }
 
   addAccounts(n = 1) {
+    if (!this.root) {
+      this.initFromMnemonic(bip39.generateMnemonic())
+    }
+
+    const oldLen = this.wallets.length
     const newWallets = []
-    for (let i = 0; i < n; i++) {
-      const wallet = this.hdWallet.getWallet()
+    for (let i = oldLen; i < n + oldLen; i++) {
+      const child = this.root.deriveChild(i)
+      const wallet = child.getWallet()
       newWallets.push(wallet)
       this.wallets.push(wallet)
     }
diff --git a/test/unit/keyrings/hd-test.js b/test/unit/keyrings/hd-test.js
new file mode 100644
index 000000000..a2284995a
--- /dev/null
+++ b/test/unit/keyrings/hd-test.js
@@ -0,0 +1,97 @@
+const assert = require('assert')
+const extend = require('xtend')
+const HdKeyring = require('../../../app/scripts/keyrings/hd')
+
+// Sample account:
+const privKeyHex = 'b8a9c05beeedb25df85f8d641538cbffedf67216048de9c678ee26260eb91952'
+
+const sampleMnemonic = 'finish oppose decorate face calm tragic certain desk hour urge dinosaur mango'
+const firstAcct = '1c96099350f13d558464ec79b9be4445aa0ef579'
+const secondAcct = '1b00aed43a693f3a957f9feb5cc08afa031e37a0'
+
+describe('simple-keyring', function() {
+
+  let keyring
+  beforeEach(function() {
+    keyring = new HdKeyring()
+  })
+
+  describe('Keyring.type()', function() {
+    it('is a class method that returns the type string.', function() {
+      const type = HdKeyring.type()
+      assert.equal(typeof type, 'string')
+    })
+  })
+
+  describe('#type', function() {
+    it('returns the correct value', function() {
+      const type = keyring.type
+      const correct = HdKeyring.type()
+      assert.equal(type, correct)
+    })
+  })
+
+  describe('#serialize empty wallets.', function() {
+    it('serializes a new mnemonic', function() {
+      const output = keyring.serialize()
+      assert.equal(output.n, 0)
+      assert.equal(output.mnemonic, null)
+    })
+  })
+
+  describe('#deserialize a private key', function() {
+    it('serializes what it deserializes', function() {
+      keyring.deserialize({
+        mnemonic: sampleMnemonic,
+        n: 1
+      })
+      assert.equal(keyring.wallets.length, 1, 'restores two accounts')
+      keyring.addAccounts(1)
+
+      const accounts = keyring.getAccounts()
+      assert.equal(accounts[0], firstAcct)
+      assert.equal(accounts[1], secondAcct)
+      assert.equal(accounts.length, 2)
+
+      const serialized = keyring.serialize()
+      assert.equal(serialized.mnemonic, sampleMnemonic)
+    })
+  })
+
+  describe('#addAccounts', function() {
+    describe('with no arguments', function() {
+      it('creates a single wallet', function() {
+        keyring.addAccounts()
+        assert.equal(keyring.wallets.length, 1)
+      })
+    })
+
+    describe('with a numeric argument', function() {
+      it('creates that number of wallets', function() {
+        keyring.addAccounts(3)
+        assert.equal(keyring.wallets.length, 3)
+      })
+    })
+  })
+
+  describe('#getAccounts', function() {
+    it('calls getAddress on each wallet', function() {
+
+      // Push a mock wallet
+      const desiredOutput = 'foo'
+      keyring.wallets.push({
+        getAddress() {
+          return {
+            toString() {
+              return desiredOutput
+            }
+          }
+        }
+      })
+
+      const output = keyring.getAccounts()
+      assert.equal(output[0], desiredOutput)
+      assert.equal(output.length, 1)
+    })
+  })
+})