How to Choose the Right Savings Account: 5 Things to Look For

A savings account is a bank account designed to help you sock away cash in a safe place. Money saved in a savings account can earn a decent rate of interest, without subjecting you to investment risks. Plus, many of today's best savings accounts have some eye-popping APYs, a winning combination of high interest and safety that makes these a good place to store your emergency fund.

But the moment you decide you want a savings account is just one moment from realizing how many savings accounts are really out there. Let me do the math for you: It's a lot, a lot more than you might think. And though there's no hard-cut formula that will -- voila -- put the right account in front of you, there are a few tips that can help you choose. Like these five.

1. Annual percentage yield (APY)

Annual percentage yield (APY) is what the bank pays you for storing money in your savings account. In the past, APY was hardly a metric worth getting excited over. But these days, some of the top savings accounts have APYs above 5%. If your goal is to earn interest, be sure to check out high-yield savings accounts, as these will likely have the highest APYs.

2. Monthly maintenance fees

Fees -- ugh.

The point of a savings account is to save money, not give your bank a portion of your hard-earned cash. Of course, sometimes the fee is justified, such as when your savings account also comes with in-person service with an expert money manager. But if you don't want the bells and whistles, be sure you're looking at free savings accounts.

Some savings accounts will have a fee but then also give you ways to waive the fee. For example, the account might become free if you set up direct deposit, or maintain a certain daily minimum balance, or open other accounts at a bank, like a checking account. Check the terms and conditions for these waiver requirements, as sometimes they can involve more than one.

3. Withdrawal limits

Some savings accounts have restrictions on how many times you can withdraw money per month. This was more common before 2020, when a federal banking rule called Regulation D limited certain kinds of withdrawals -- like online transfers -- to only six per month. Since then, the federal government has temporarily relaxed the rule, but many banks still enforce it and restrict certain monthly withdrawals to six.

4. ATM access

Some savings accounts will give you ATM access by way of an ATM or debit card. This can make it convenient when you need cash fast, as you just need to find a no-fee ATM within your bank's network. This feature is commonly found with brick-and-mortar banks, though some online banks may offer you ATM access, too.

5. Mobile bank features

Finally, if you manage to narrow your search to a few savings accounts, and none of the above tips help you eliminate one or several, compare each account's mobile banking features. The best savings accounts will have robust features, like the ability to track all your savings and spending (including from brokerages and credit cards) in one place. Take a look at the app's reviews, too, to see what other users think.

You might want to look at other factors, like FDIC insurance, customer service hours, and how many free ATMs are in a given bank's network. Choosing the right savings account can be tough, but when you start to break each account down by these features, the right decision starts to become clear.