Problem: For many Americans, picking out a bank in which to entrust one's hard earned money comes down to convenience. After all, a bank with a branch close to home and plenty of ATMs around town ensures that your cash will never be far away. But that convenience comes at a price. Many of the megabanks that have enough clout to drop an ATM on every corner also charge a variety of hidden fees and surcharges that can wreak havoc on the careless consumer.

Since the 1990s, banks have raised fees on nonsufficient funds and overdrafts, which are a constant danger for low balance account holders. Noninterest income accounts for 27 percent of revenues for the nation's largest banks, totally $38 billion annually. 20 percent of banks don't tell customers their overdraft rates in advance and almost none of them warn customers when their account is running low. Large banks are particularly ruthless in their enforcement of ovecharges. Besides "gotcha" fees, banking giants like Citibank and Bank of America charge huge annual rates for mid-sized accounts that can reach as much as $500 a year.

For an alternative to the big Wall Street institutions, consumers might find a better deal at their local credit union or an online bank. Credit unions and online banks usually have far more lenient policies and lower fees than their larger competitors. Many online banks even provide free access to thousands of ATMs across the country, simply reimbursing them later for any withdrawal fees. Unfortunately, online banks don't have all the amenities found at brick and mortar outfits. INGDirect, for example, doesn't offer paper checks nor does it accept deposit envelopes, thus making it necessary to sign on with another bank for some basic tasks. To find the bank that's right for you, go to www.findabetterbank.com or click here to find one of the nation's 8,000 credit unions located near you.

Questions:

1. Why do credit unions and online banks tend to have lower fees and more lenient banking policies?