Tips for banking online

Dear PropellerHeads: One of my New Year's resolutions was to look into Internet banking. Can you give me a few tips to get me started?

A: I see how this works. You have a resolution, but I have to solve it for you. My wife has resolutions like that too. I love her... I'm not too sure about you though.

Typically, the biggest reason to migrate your moola to these mortarless banks is to obtain higher interest rates and lower fees. Internet banks can do this because they don't have the overhead of physical structures such as bank buildings or ATMs to support.

On the other hand, Internet banks rarely provide "instant" satisfaction. If you need a cashier's check right away to pay off Paulo, an Internet bank will not be able to help you. Also, any non-payroll deposits will not be available for immediate withdrawal. Or if you want to berate a bank employee and watch them squirm, you are out of luck.

Getting cash is rarely a problem, however, as you can just use the nearest ATM. Most Internet banks have agreements with credit unions so you can use credit union ATMs without risk of fees. Some banks will even refund you any fees that you may incur!

Speaking of credit unions, don't forget these as a banking option. Many times, interest rates and fees are equivalent between credit unions and Internet banks, though they may require a higher minimum balance to get that better rate.

But let's say none of these drawbacks are a problem for you. How do you go about finding the perfect Internet bank to stash your cash? Here are some of the major ones:

Ally, (www.ally.com), Chase (www.chase.com), E*Trade (www.etrade.com), Everbank (www.everbank.com), HSBC Advance (www.hsbcadvance.com) and ING Direct (www.ingdirect.com).

But there are literally dozens more. Search for "Internet banks" or "Internet banking" and see what comes up. Just remember to read the fine print. You'll see that a lot of credit card companies also offer traditional savings vehicles like CDs, savings accounts and perhaps more.

Some final questions to ask yourself before you sign up: Does the checking account allow you to have a checkbook? Although we geeks love a paperless world, the truth is that checks aren't going away anytime soon.

Is that amazing interest rate just an introductory rate? That two percent rate doesn't look so hot when it goes down to 0.02 percent after three months.

What are the minimum balances required and the fees if you do not maintain that balance? Is the bank FDIC insured? Is there 24/7 telephone support? What are the online tools like?

And finally, what fee shall I charge you for helping you out on this one?

When the PropellerHeads at Data Directions aren't busy with their IT projects, they love to answer questions on business or consumer technology. E-mail them to questions@askthepropellerheads.com or contact us at Data Directions Inc., 8510 Bell Creek Road, Mechanicsville, VA 23116. Visit our website at www.askthepropellerheads.com.