SEATTLE -- Online banking is not only convenient, but also a place where you'll probably find the best deals.

I remember when I was a kid, it was so much fun to go to the bank with my dad. Everyone knew us. Sometimes i got a lollipop.

Those days are long gone. Now, most banks would like you to stay at home and use your computer for routine transactions. And in many cases, if you do, you'll be rewarded with higher interest rates and lower fees.

In the last few years, Internet banking has really taken off. In fact, Forrester Research forecasts that in two years, about eight out of 10 U.S. households with Internet access will bank online.

Online banks are usually a better deal than their brick-and-mortar counterparts. They generally have lower fees and higher interest rates. That's especially true with Internet-only banks.

Take a look at these numbers for money market deposit accounts. The difference is astounding.

In Seattle, KeyBank is currently paying 0.2 percent, and Chase is paying 0.01 percent.

At bank of Internet USA, you can get a savings account that pays 2.5 percent.

Compare these rates on a one-year CD. KeyBank paying 1.10 percent, and Chase is paying 0.2 percent.

HSBCDirect.com has a one-year CD that yields 2 percent. GiantBank.com is paying 2.16 percent, and DiscoverBank.com pays 2.10 percent.

"That doesn't sound very high but in the context of inflation, which is very low, that's important," said Greg McBride, senior financial analyst at Bankrate.com. "It's gonna keep you ahead of inflation. You worked hard to put that money away for savings. You want to make sure it has the right buying power when you need it."

Last year Bankrate compared checking accounts at virtual and physical banks. The findings are eye-opening.

At brick-and-mortar banks, the average balance requirement on interest checking accounts was $3,461. For online banks, the average was just $843.

The average service fee on the same accounts if you don't maintain that minimum balance was $11.97 at brick-and-mortar banks, and $4.38 at online banks.

Bankrate also found that online banks paid a yield that was an average of eight times higher than traditional banks.

If you bank online, you want to be sure your money is safe, especially if you go with a virtual bank you're not familiar with.

Make sure the bank is FDIC-insured. Don't trust logos. Go to the FDIC Web site to verify that coverage yourself. Consumer reports recently rated online banks. Here are some of the ones that got top marks: ING Direct, HSBC Direct, Citibank and Capital One.

For more information:

Consumer Reports: Best Online Banking Options

FDIC: Safe Internet Banking

CNET: Online Banking is Booming