You Should Look for a Savings Account With This Feature

Savings accounts aren't exactly sexy, but having one is an important part of managing your finances. You need a place to keep the cash you're saving for near-term goals, like a nice vacation next year, or buying a house the year after that. And you absolutely need a home for your emergency fund that won't require you to jump through hoops to reach that money. What's the point of having an emergency fund if you can't access it when an unplanned bill pops up?

Savings accounts are fairly straightforward, as bank accounts go. But you certainly have options when it comes to picking one. I opened a savings account with an online-only bank last spring, and as my financial situation has improved since then, I've come to appreciate one feature of it more and more. I recommend you look for a savings account that comes with the option to create sub-savings accounts.

This feature makes it easy to save for multiple goals

Depending on the savings account you choose, this nifty feature might go by a different name. Some banks call them "buckets," "pockets," or "vaults." But it all comes to the same: With this feature, you can save for separate goals within the same bank account. And if you've opted for a high-yield savings account with an online-only bank, you get to earn the same high rate of interest on the entire account, no matter how many goals you're saving for separately.

My high-yield savings account lets me set up dated goals within each of the separate sub-accounts, and I get a congratulatory email whenever I reach a goal. (Most recently, this was for the sub-account I created to save money for an upcoming staycation.)

I can also easily move money around between the sub-accounts, and it's easy to tell what percentage of my total balance is represented by each. And if I want to transfer money out of the account altogether, I can specify which sub-account it should come from. Since I also save for my quarterly freelance tax payments and have to drain this sub-account four times a year, this is a great function indeed.

Should you just open more than one savings account?

Of course, you don't have to opt for a savings account with this feature. Instead, you might decide to just open multiple savings accounts, and there's nothing wrong with that either. Online savings accounts are quick and easy to open, and if you don't mind spending more time keeping track of separate accounts, this could be a good move for you.

In fact, if you have money you want easy access to (such as an emergency fund), it might make sense to put it into a savings account linked to your checking account, as that will allow you to move money back and forth quickly when you need to. One pitfall of keeping the bulk of my savings at a different bank from the one I use for checking is that while I can transfer money from checking at one bank to savings at the other very quickly, it takes a whole day to move it back in the other direction.

Other features of the best savings accounts

Here are a few other things to look for when you're choosing the best savings account for you.

• No monthly maintenance fees: Why should you pay for the privilege of keeping your money at a certain bank? Many online-only banks have done away with fees altogether, and even if your bank charges them, look at the rules for your account to see how to get them waived. This could mean maintaining a certain minimum balance in the account or arranging for a regular transfer from your checking.
• Easy access to your money: Many savings accounts don't come with an ATM card, but you should still be able to get your money when you need it. In the case of my savings account, I ended up opening a checking account linked to it so I could get a debit/ATM card.
• FDIC insurance: It is vital to keep your money with a bank that is FDIC insured. In the event of a bank failure, up to $250,000 of your money is protected in a savings account and will be returned to you.
• High APY: I saved the best feature for last. Thanks to this high interest rate environment we've been experiencing, savings accounts are paying generous interest right now. My savings account was just bumped to an APY of 4.25%, and there are other accounts out there paying more.

Never underestimate the utility of a good savings account. It might not make you weak in the knees, but it's an important way to keep your money safe -- and you might get to take advantage of some pretty sweet features, too.