4 Must-Have Features in a Savings Account

Saving money is one of the most important financial habits. You'll also need a safe place to keep that money, which is why everyone should have a quality savings account.

Since nearly every bank offers this type of account, plenty of options are available. But they're not all created equal. Rates, fees, and other features vary quite a bit, so using the wrong account could cost you.

It helps to know what to look for so you can separate good savings accounts from those you should avoid. Whether you're shopping for a new savings account, or you want to see if your current account checks all the boxes, here are the features you should get.

1. High APY

Good news: The best savings accounts are offering their highest rates in years. Rates above 4% are common now, and some are even offering over 5%.

Bad news: Most people aren't taking advantage of high rates. Only 31% of Americans have a savings account with an APY of at least 4%, according to savings account research by The Motley Fool Ascent.

The people who don't have a high-yield savings account are missing out on a lot of money. The average savings rate is just 0.46%, and some of the biggest banks offer as little as 0.01%. For comparison's sake, on a $5,000 balance, a savings account with a 5% APY will earn you $250 per year. A 0.46% APY earns you $23. And a 0.01% APY earns you $0.50.

2. No monthly fees

Many banks charge a monthly fee for their savings accounts, normally anywhere from about $5 to $15. This is most common with brick-and-mortar banks. Sometimes it's called a maintenance fee, and sometimes it's called a service fee, but the end result is the same. You lose money while your bank gets richer.

To be fair, banks that charge these fees typically waive them if you meet certain conditions, such as maintaining a minimum balance. But an easier option is to get a savings account that doesn't charge monthly fees.

Online banks often don't charge maintenance fees on their accounts. These also tend to be the banks that offer the highest interest rates, so it's a win-win.

3. A reasonable minimum balance requirement

There are a few minimum balance requirements to look out for with a savings account:

• A minimum deposit to open the account
• A minimum balance to keep the account open
• A minimum balance to earn the APY

Plenty of savings accounts don't have minimum balance requirements. Choose one of these if you don't have much saved yet, and you don't want to worry about depositing or maintaining a certain amount.

A minimum balance requirement isn't necessarily a problem, if you're able to meet it. For example, one popular savings account offers an APY of over 5%, but you need a balance of $5,000 or more to earn the max APY. If you don't have $5,000, it wouldn't make sense to open that account. But if you do, then it could be a good choice.

4. FDIC or NCUA insurance

No matter which savings account you choose, you want the peace of mind that your money is safe. That's where insurance comes in.

Before you open a bank account, see if it's a member of the Federal Deposit Insurance Corporation (FDIC). If so, that bank is FDIC-insured. In the event of a bank failure, you're covered for up to $250,000 per eligible account.

With credit unions, insurance is provided by the National Credit Union Administration (NCUA). So if you're looking at a savings account offered by a credit union, check that it's NCUA-insured. If so, your savings will be covered up to that same $250,000 limit should the credit union fail.

If your current savings account doesn't have all those features, it's worth finding one that does. Opening a new account is a quick process, too. You can do it online in under 20 minutes with many banks. With how convenient it is, and all the great options available, there's no reason to settle for anything less than the best.