Four Ways To Compare Online Banks

NEW YORK (MarketWatch) -- If you're looking for a better interest rate for your savings, an online bank may be just the ticket. Many online banks offer higher rates than their brick-and-mortar counterparts.

Just like any banking decision, you'll want to choose your online bank wisely. From Consumer Reports Money Advisor, here are four tips for how to evaluate an online bank:

. You can check the most recent rates at Bankrate.com. But don't stop there: Verify those rates with the banks themselves. Also, compare online rates with the rates of banks in your area.

Many online banks come with a host of restrictions that trigger fees. For example, many online accounts limit the number of transactions each month. They also charge extra for printed statements and in some cases for calling a customer representative instead of banking online.

Online accounts come in many forms. In addition to savings accounts, many also include checking and money market options. There may also be retirement, joint, trust, and payable-on-death accounts. You may even be able to get attractive rates on mortgages or other types of loans.

. Remember that rates on accounts change often. You may receive alerts from your bank in the case of rate revisions, but you might not. If your bank's rate ever becomes non-competitive, think about switching.

By Marshall Loeb