Few things are as distasteful as banking fees.
You give your money to a bank, and then the bank charges you while they enjoy the privileges of having your money. These new banks don't have any branches, and therefore don't have the overhead costs of their traditional counterparts, such as rent and teller salaries. There are about 25 such Internet-only banks, according to Online Banking Report, and there are more starting up all the time. So to get customers, many Internet-only banks offer lots of incentives, and the key one is no fees. Most of these cyber-banks let you set up a checking account, and give you the ability to pay your bills electronically, for free.