There are many types of online banking, but out of all of those offers, emailed invites and account info, how do you make sense of which one is right for you? First, narrow down what type of banking is most important to you. If you are looking to buy a home sometime soon, then you may look at a bank that offers a low interest mortgage. If you want to pay bills quickly and easily, a no fee banking account where you can manage everything with the click of the mouse might be better.

Today, almost everyone has an online bank account. There are basically three main types of "virtual banking":

1) Electronic bill presentment and payment. This is just what it sounds like - paying bills! If you're shopping for a bank where you can pay bills online, make sure you look out for additional fees and charges. Sometimes, a bank will charge a nominal fee each time you pay an online bill, but those charges can add up quickly. Also, make sure you are choosing a reputable bank account, and not an online bill payment service. You don't want your important information getting into the wrong hands, or being lost in cyberspace.

2) Funds transfer. This allows a customer to transfer money between checking and savings accounts quickly and easily. You may want to transfer money from your checking account to your savings account, or vice versa. Or, perhaps you want to transfer money to a family member; this can be a much quicker and cheaper way to send money without using a wire transfer service.

3) Loans. A number of people apply for loans online, and if they are approved, manage their payments and loan info on the banking website. An online loan application can be a fast way to see if you are approved or not for that car loan.

Online banking is also efficient because you can import your financial data into a program like Quicken or Microsoft Money. Then, you can keep track of all your financial needs - everything from budgeting to bill payments.