Banks That Want Your Business

With the rise of Internet-only banks and bricks-and-mortar mergers, it's become increasingly easy for customers to swap their accounts for a better deal, says Lisa E. Phillips, a senior analyst with eMarketer, a market research firm. "People are looking around and saying, 'What can you give me for free?'" she says. And that makes banks nervous. They're enticing customers to open an account — and stay for the long haul — with financial incentives such as generous savings rates and fee-free ATM usage.

We've tracked down four financial incentives you want to snap up. After all, you only need one toaster.

ATM Fee Waivers
Using another bank's ATMs can really add up. You'll pay an average $2.89 for the transaction, which includes a fee from your bank and one from the bank that runs the ATM, according to Bankrate.com.

That said, more banks are waiving or reimbursing those pricey charges. Washington Mutual never charges you for using a foreign ATM; while Wachovia and SunTrust both waive two fees per cycle. There's a catch, however — though you won't incur fees from your own bank, you'll still be charged by the other bank.

Bank of Internet, however, reimburses account-holders for a set amount of the ATM fees other banks charge. With a Freedom Checking Account, for example, you'll be reimbursed up to $7 per month. Since most banks charge nonaccount-holders $1.50, you'll get four free trips to the ATM.

Without the extensive ATM networks of bank chains, individual banks are at a disadvantage — their customers are constantly racking up foreign ATM fees. But some of these banks are getting around fees by sticking together. Electronic payments network NYCE has created SUM, an ATM network that individual banks and credit unions can join. So if you're a member of the Howmet Credit Union in Whitehall, Mich., for example, you get free use of any of the more than 2,800 ATMs at member institutions nationwide.

Activity Rewards
Programs details differ, but the idea is the same: Make use of your account, and be rewarded. Here's a selection:

Free Checks
Washington Mutual drew attention to this perk with its new WaMu Free Checking, which promises "Free Checks For Life." It is currently the only major U.S. bank to offer this perk in a free checking account, though others — including SunTrust, HSBC, and Wachovia — provide free checks for other accounts. That's a savings of about $10 a year.

Better Interest Rates
With interest rates on the rise, banks are now offering decent rates on their money-market accounts. The most competitive rates are being offered by Internet banks or branches.

Here are five of the heavy-hitters, ordered by highest yield: