• Online checking accounts can be more convenient and cheaper than typical checking accounts and often offer additional benefits.

• Online banking refers to banking transactions which are conducted online, with a traditional or online bank. Traditional banks typically offer ways to manage finances and transactions online, including the option to open an account online. Standard checking accounts can often be opened online for the same or similar terms and conditions as opening them in person. These accounts are not online bank accounts, and you have the option, and might sometimes be required to, conduct some of the transactions in person. While online banking is offered by most banks, online checking accounts typically have additional benefits.

• Online banks do not have brick-and-mortar locations or have a limited amount of banking locations. The primary way to conduct banking transactions with these banks is online, although transactions can often be conducted by phone as well. The lack of banking locations typically result in better interest rates for savings account and other savings for you.

1. If you have a savings account with an online bank, opening a checking account with the same bank can make it easier to access your money and conduct transactions. For more information on how to open an online savings account, visit Mahalo's guide on How to Open a Savings Account Online. Not all online banks offer both types of accounts, however.
2. For your convenience, you might want to open a standard bank account with a traditional bank as well, since the services offered by the online bank might be limited.
3. Online banks typically charges lower fees, or no fees, for opening and using a checking account.

• Before opening a checking account (or any bank account) you should always research the bank.

1. Research the bank to verify that it is legitimate and stable.
2. Check to see that the bank is insured through FDIC, a federal agency which insures funds in banks to protect bank account holders. Funds up to $250,000 are insured through the agency.FDIC:

FDIC

1. If the bank is not insured through FDIC, you risk loosing your money if the bank collapses.

• After researching and choosing a bank, it's time to open the online checking account.

1. While you can complete the initial application online, you might need to mail in copies or your identifications to confirm your identity.
2. Make sure to choose a difficult, complex password to prevent unauthorized people from accessing your account. Follow the bank's guide lines for creating a password.