Where I live the interest rate on a brick-and-mortar savings account with a $100 minimum balance is 0.10%. Yes, 1/10 of one percent. If you’re willing to keep a minimum balance of $10,000, that rate increases to 0.40%.

Compared to that, a rate of 4.50% to 5.05% (or more, with a promotional rate) with a $1 minimum balance at banks like ING Direct, HSBC, and Emigrant Direct probably seems too good to be true. But it’s not. So what’s the catch?

Really, the only catch is that you can’t walk up in person to your online-only savings account to make a withdrawal or deposit and have it take effect almost immediately. You have to make withdrawals and deposits over the computer, and they take between 2-5 days (depending on the bank). You also have to have an account at another institution to transfer money to and from. There are no fees for the transfers, unless your other bank charges one. (Most don’t.)

And like the banks that pay the 1/10 to 4/10 of a percent interest on savings accounts, these online banks are FDIC insured. They just give you more money, because their overhead is lower.