Online banks require, usually, 1$ minimum balance to open and maintains a savings account. They charge no monthly service fees. Many of these online banks pay percentage yields around the 5% mark, far above the brick and mortar neighborhood bank. Check writing is limited (usually limited to 3 checks a month) and most do not offer online bill payment. Generally you have to link your new online account to an existing checking account.

Bankrate.com is a good place to start shopping for an online savings account. Online savings accounts are similar to money-market accounts with the highest yields in the 5.3 percent neighborhood. For example (Dec 31) Citibank Direct offered a high yield e-savings account linked to a no-fee, no minimum balance checking account in addition to free ATM cards that draw directly form your new account.

With competitive interest rates those extra pennies might add up to making online banking and checking account worth looking into if you have online access and a checking account.