The following post is by Fred from OnlineBanksBlog.com, a personal finance site focused on helping people find the best bank rates. OnlineBanksBlog.com focuses on providing bank review so that consumers can find the best banks and the best interest rates. You might like its reviews of M&T Online Banking and Regions Online Banking.

Almost everyone has had a bank account at some time in their lives. But, too often people are confused as to what type of bank account is right for them.

Savings Accounts

Savings accounts are something everyone should have. Starting a savings account and keeping up with its growth is an important part of financial stability. The first thing you should do when looking at an online savings account is consider what it is you really need and how much you have to deposit to begin with.

If you have just a few dollars – less than $5,000, as a rule of thumb – then you’ll want to look at passbook (regular) savings accounts. If you have more than that, then other options like high yield savings, certificates of deposit (CD), and even money market accounts may be better suited to your needs.

What are your savings goals?

Your savings goals should be the first thing you consider when looking at an account. If you want to put a little away each month through a direct deposit or automatic transfer, then try a regular or high yield savings account. If you need easy access to the money, then consider money markets as an option. Finally, if you have a large chunk of money to put away and want to get the best rate, but don’t need access to it, then you’ll probably find a CD is your best option.

Minimum Deposits, Fees, Interest Rates Oh My!

Nearly every bank has specific rules about minimum deposits, withdrawal penalties or limits, and most banks have an interest rate that pays out based on the account type you’ve chosen. So weigh the options carefully.

As an example, let’s say you have $5,000 to deposit and plan on adding another $150 a month through direct deposit. A certificate of deposit won’t allow you to add more to the account, but a high yield savings account would. At Bank A, the high yield savings rate if 0.15% and at Bank B, it’s 0.08%. Obviously, at first glance, Bank A looks like the best bet.

But before you decide, check out the rate history (if you can) of Bank A and make sure their current rate isn’t a one-time or occasionally-high fluke to entice new customers and that it won’t drop to 0.05% in a couple of weeks or next month. Also, how accessible is the bank, how hard is it to get to your money and how easy is it to set up an account? Comparing bank histories may show you that Bank B, while it has a lower rate, has a relatively consistent rate versus Bank A.

Last, but definitely not least, does either bank charge fees? Will you avoid the fees with a large deposit?

FDIC Insurance

Find out what you’re getting into. Most banks are FDIC insured, but be sure your bank of choice has the FDIC insurance logo prominently displayed on their site before you open an account. The FDIC insures up to $250,000 in standard deposits (until 2013, when it drops back down to $100,000).

Once you’ve found the bank that fits all of your criteria, spend the first few months of your business relationship getting to know how the bank operates and what kind of service they provide. If they aren’t quite up to par, begin looking around again.