Over the past several years, the explosion of the Internet has completely changed the way that most industries conduct their business. Banks are certainly among those industries that have been immensely changed.

In fact, the Internet has allowed banks to be created and prosper without even having a local branch. When it comes to management of my money, I tend to be a late adopter of technology. So as I saw many banks venture into the on-line marketplace, I continued to manage my money with a large bank that had local branches.

A little over a year ago, I was looking for better interest rates for my savings account money, and I was amazed at the difference in interest offered by local banks when compared with online banks. The online banks’ savings account interest rates were more than 3 percent higher!

In order to obtain interest rates similar to online banks, I would have to place my money in a certificate of deposit at a local bank. A certificate of deposit would reduce liquidity and still not compete with interest rates offered via basic online savings accounts.

How can the online banks offer such vastly different interest rates on savings accounts? They do not have to pay for local facilities and local staff. Without a local presence, how can they have any chance to acquire customers and build their business? By paying higher interest rates!

When I was searching for an online savings account, I set a few “must-have” requirements for an on-line bank to be considered. It had to be FDIC-insured, have zero fees, 24-hour Internet access, and easy access.

I found several online banks that met my requirements: INGDirect.com, HSBCUSA.com and EmigrantDirect.com.

Once I had identified these online banks, I began asking my friends about their experience with these banks. I found that everyone who had used these accounts were very satisfied. It makes sense really. After all, these banks have very few actual branches, and that means that their service must be top-shelf, or else their customers will quickly leave.

So, hesitantly and haltingly, I made the decision to roll a portion of my short-term savings into an online savings account. The result? A brilliant and seamless transfer that has earned excellent interest. I have since opened two more online savings accounts for the rest of my savings. I have been extremely pleased.

Have you considered an online bank? As I write this article, I have determined the current savings account interest rate offered at my local bank. The interest rate for a regular savings account is .20 percent, and an account has a minimum balance requirement of $300. The interest rate for my online savings account is currently 3 percent, and the account has a minimum balance requirement of $1. No contest.