Online Checking Accounts

There are many reasons why opening bank accounts online is a good idea.  Some people have credit problems and find it difficult to open an account at their local bank.  Others prefer the convenience of an online account, and still others prefer the higher interest rates you can typically get with an online account.  Whatever your situation is or your reason for opening an account online just remember that you have to be just as diligent about which bank you choose to partner with as you would if opening an account at the bank down the street. Actually, you may need to be even more careful.

For the purpose of this article, when I talk about an online bank I'm referring only to those banks that do all their transactions online.  I'm not referring to a bank that has a traditional brick and mortar location but also have online banks as well.  Since online banks have a lot fewer expenses they are able to pass those savings on to their customers in the form of higher interest rates.  But interest rates are only one aspect of your overall banking experience.  Here are some things you need to know before you choose  which bank to open an account with:

• What is their interest rate?  This is usually the number 1 thing people look at when comparing banks. 

• How accessible is your money?  Can you get to it virtually anywhere 24/7?  Are there fees associated with depositing or withdrawing your money? Are you restricted to only using certain ATM's and if so, do you have a lot of those in your area?  What fees will you pay when you use an ATM?

• Can you set up several accounts, such as a savings and a checking and transfer money back and forth between them all with a click of your mouse?  This can be a great way to manage your money.  If you're like me, you'll find it easier to keep most of your disposable money in a savings account.  If I keep it in my checking account I find I spend it more frivolously, but if it's kept in my savings account I'm very reluctant to pull it out.  With a linked account I can keep all my disposable income safe, from me, but I still have the option of easily transferring it if I need it in just a few seconds.  Using this method has actually allowed me to save more than I did before.

• Does your online bank offer other services such as mortgages, online bill pay, or CD's? 

Today the internet offers more options, in every aspect of life, than ever before.  Having bank accounts online is just one of those options.  There are a lot of good reasons for opening an account online, just make sure that you know what you're getting into. Don't be afraid to take a little time and compare all the benefits and features of several banks before making your choice. After all, it's your money, you have the right to make sure it's working as hard for you as it can.