Crain's New York profiles a number of new online banking ventures in New York, including new offerings by New York Community Bank and HSBC Bank USA. The increase in competition for online accounts is good news for consumers, who are already benefiting from higher rates on their savings accounts:

"The Internet surge has created a dogfight over savings rates. Last week, MyBankingDirect.com raised its money market interest rate to 3.75%, eclipsing the 3.5% offered by Emigrant Direct and HSBC. All three also far outpace rates offered on traditional accounts."

Moreover, online accounts are a tremendous enabler for smaller banks that are competing with giant banking institutions. In response, larger banks like Citibank are testing new Internet-only accounts that offer high yields to consumers. In fact, says one research analyst, "Ten years down the road, most of the major banks out there will have something like this..."