1. They offer higher ratesMany online banks today strive to offer top yields on savings and money market accounts, targeting savers who have grown weary of near-zero interest rates. The most recent MoneyRates.com America's Best Rates feature indicates that the average savings account rate at online banks was nearly three times the average rate at traditional banks. In addition, the survey found that average online bank rates rose in the third quarter of 2012 as average rates at traditional banks fell, indicating that the divide between the two is growing. If your savings or money market account is only offering an average yield, finding an online bank that will double or triple that rate isn't likely to be difficult.
2. They charge less in feesChecking account fees have become a flashpoint for consumers. Countless traditional banks have tested new fees in recent years, but the results haven't always been pretty -- witness Bank of America's jittery attempts to institute new fees on checking accounts. The most recent MoneyRates.com Bank Fees Survey indicates that checking accounts at online banks are more than twice as likely to be free of monthly maintenance fees as the checking accounts at traditional banks. And when they do charge fees -- for things such as overdrafts -- online banks charge lower amounts on average, according to the survey figures.
3. New technology has made them more accessibleWhile online banks have long produced innovative websites, they haven't stopped developing new ways to make online banking simpler. Technologies that make it possible to deposit checks through your computer or smartphone are among the latest perks.
The eCheck Deposit system from Ally Bank, for example, allows you to photograph or scan your checks with a smartphone and deposit them via Ally's app or website. While paper checks are becoming more of a rarity today, online banks are still doing more to attract customers who prefer them.