Having access to everything at the tip of your fingers 24/7 is becoming a popular concept. But before signing up for an online savings account, there are a few things you should be aware of.

As personal computers become a staple of every household and Internet activity expands, online banking is becoming more and more commonplace. Virtual banks, funded and maintained exclusively on the Internet, are offering online savings accounts to people who wish to handle their money from their own home.

Higher interest rates are a major attraction for those who are looking to earn more money on their savings. When opening a savings account, online or otherwise, this is an important factor.

1. Interest rates

The first thing that attracts potential customers are the interest rates associated with online savings accounts. These rates can be higher than traditional savings accounts with local bank branches in your area. One reason for this is that many online banks do not have the added cost of maintaining physical branches throughout the country.

One of the most popular online savings accounts is offered through ING Direct, part of ING Bank, a virtual bank founded in the United States in 2000. ING was one of the first online banks and is probably the most well known. In the past few years, however, other online banks have emerged and ING Direct now faces more competition in the online space.

2. Linked accounts

A second convenient feature of online banking is the ability to link your standard checking account from another traditional bank to your online savings. By doing this you can easily transfer funds from one account to another. Depending on the bank that you choose, you may be able to link several checking accounts to a single online savings account.

3. Easy access

Easy access has been a concern for some people, leaving them with questions about taking their finances into the Internet realm. For many online banks there is a delay of up to five business days between the date you make a deposit and the date the money becomes available to you. There are some companies that offer same-day access, such as E*Trade Financial. If speedy access to your deposits is a concern be sure to ask about this feature.

4. Constant availability

Other issues to consider are constant availability and convenience (whether or not it is simple to use). As opposed to traditional banks, most online banks offer 24-hour access, meaning you could transfer funds to your checking account at any time and find an ATM for cash, even after business hours.

Simple Web site navigation is a key factor because not all online-banking customers grew up in the Internet age; online banks need to make sure that customers do not have to be technologically savvy in order to make deposits, transfers and withdrawals.

More and more virtual banks are also offering ATM cards to their customers so they can withdraw funds directly from their account. It is even possible to set a specific amount to be transferred from one of your linked checking accounts to your online savings account every month.

This limits the need for the customers to make transfers themselves and can increase earnings by having more funds in online savings.

5. Security

The last issue, but far from the least, is security. There are two major points to consider within this category:

• The first is whether or not the bank is insured by the Federal Deposit Insurance Corporation (FDIC). Banks insured by the FDIC now cover their customers for up to $250,000. Check to see if the banks that you are considering are FDIC insured.
  
  
• Internet security is the second item to consider. Each company should provide an explanation of what measures they take to secure your personal information on their Web site. This should include firewalls, data encryption and other advanced security measures.

Research various saving accounts, both online and standard, and compare the benefits of online against traditional banks. Remember that just because it's new, it doesn't mean it's for you. But at the same time, if saving your money in an online account appeals to you and fits your needs, you should not hesitate to consider this option.