3 Little-Known Perks of High-Yield Savings Accounts

When choosing a high-yield savings account, most people focus on one thing: the annual percentage yield (APY). This is understandable because APY is a key factor in how much you take home from the account. But it's not the only thing that matters.

Savings accounts can have other perks too. Here are three that you may not have considered before.

1. No maintenance fees

Bank maintenance fees are monthly charges you pay to own the account. They're most common with brick-and-mortar banks that have a large branch network to maintain. Generally, there's at least one way to waive the maintenance fee, like maintaining a certain minimum balance or depositing a certain amount into the account each month. But if you're not able to do this, you could pay as much as $30 per month.

Depending on your balance, fees could wipe out what you're earning in interest each month. That's why it's generally wise to stay away from savings accounts with maintenance fees, unless you know you can meet the requirements to waive them.

Fortunately, high-yield savings accounts usually don't have maintenance fees at all. That's because they're often available through online banks. Their overhead costs aren't as high, so they're able to skip the annoying fees many traditional banks charge.

2. ATM cards

Most savings accounts don't permit you to withdraw cash directly. You must first transfer your funds to a checking account, and then you can write a check, use a debit card, or withdraw cash from an ATM. But an increasing number of high-yield savings accounts are bucking this trend.

Check-writing capability is still limited to checking accounts and some money market accounts, but ATM cards are available with some savings accounts. You can use this to withdraw cash without transfers.

Most online banks partner with nationwide, fee-free ATM networks, so you probably won't have to travel far to find one. Check your bank's ATM locator to find the one nearest to you.

3. Savings tools

Saving is a challenge for some, but there are high-yield savings accounts that help make this easier. One way they do this is by enabling you to set up automatic transfers between linked checking and savings accounts. This automates the process of saving, so there's no chance of forgetting. Of course, you're free to change your savings amount or suspend automatic savings altogether as needed.

Some high-yield savings accounts use a digital envelope system to help you earmark cash for specific goals. You might keep your emergency fund in one, the money for a down payment on a car or home in another, and cash you're saving for a vacation in a third. Separating your savings like this makes it easier to see what you have and to avoid accidentally spending more than you mean to.

Not all savings accounts have all of these features, so it's worth thinking about which matters the most to you. Use this to guide you to the high-yield savings account that's best for you.