Best Deals in Online Banking, 2012

As banks attempt to bolster their bottom line, many customers, especially at big banks, are getting stung by fees for formerly free checking accounts.

As banks attempt to bolster their bottom line, many customers, especially at big banks, are getting stung by fees for formerly free checking accounts. The assault of new fees wouldn’t seem so onerous if banks were paying more on deposits. But the average yield on savings was recently 0.22% and on checking accounts only 0.14%, according to the online bank-comparison site DepositAccounts.com.

However, these seven online banks (including one credit union that anyone can join) offer free checking accounts, charge fewer fees than big banks and tend to offer higher rates. Because these banks lack dedicated ATMs, they usually reimburse you for other banks’ ATM charges. You’ll have to rely on direct deposit to put money in your account, although some banks allow you to deposit checks via your smart phone. As with traditional institutions, up to $250,000 per account is protected by the Federal Deposit Insurance Corp. or the National Credit Union Administration.