In this tough economic climate and with so much competition out there, how can a consumer choose the best online bank for their needs?  Many factors need to be considered based on your personal preferences and financial need.  Do you need a checking or savings account or both? Perhaps a source of finance ?  Just looking for a good online CD rate?  Consider all the features you might need and then begin your search.

You should always go with a bank that is FDIC insured of course and be sure they are a legitimate business.  Many banks are well known and have all their services offered online but many of them you’ve never heard of before, how do you rate them.  Places like Forbes.com, Money Magazine, Yahoo finance, just to name a few, would have articles and ratings on many of the online banks and usually have areas for customer comments.  Do some research.  How long has the bank been around, what rates do they offer their customers, what is their fee structure, have they proven themselves to be a reliable place to store your money.

Many banks catch your interest with a promise of great rates and no fees.  Read the fine print.  How soon does your great rate end and do minimum balance requirements come into play.  Some banks require only a $1 deposit for a high yield online savings account, others will say $1, but then want $10,000 within 60 days added to the account a left for 6 months.

Online banking is the way of the future for this and future generations.  Finding the best online bank can be very profitable for you.  There is something to be said for having in person contact with bankers and tellers but many banks reward you well for helping them save money and not coming into a branch.  Many don’t even have a structure to visit and are only offered online.

Your best online bank will be the one that suits your needs.  Only you can make that decision.  Investigate them.  Try some out if you aren’t sure.  Ask friends and colleagues.  Some of the most popular banks, ING, HSBC, Barclay, State Farm, WTDirect, etc, are vying for your business in this tough climate.  Take advantage now of some of their offers, choose the one that’s easy for you to use, and take that to the bank!