NEW YORK (MarketWatch) -- When it comes to earning interest on your money, checking accounts have long been the losing bet. Your typical free checking account at a nationwide bank pays no interest whatsoever. Interest-bearing accounts, when they are offered, generally require you maintain a large minimum balance for paltry returns.

Take Citibank's offer. You earn only 0.25% and must keep $6,000 to avoid paying monthly fees. Other brick-and-mortar banks pay similar rates with stringent requirements if you choose to earn interest instead of opting for their hassle-free (and interest-free) options.

Enter the Internet. As it has done to money-markets, CDs and online savings accounts --raising rates across the board -- so it is doing to checking.

Bank of Internet USA is paying 3.2% for its online checking account with a minimum deposit of $1,000 to avoid a $4 monthly fee, reports Bankrate.com. EverBank, another online bank, is paying 3.01% with a minimum balance of $1,500 and a teaser rate of 5.51% for three months. NetBank pays 2% but requires only a $50 deposit.

Before you rush to open a new checking account, consider that interest checking still isn't a great deal when compared with rates on online savings accounts (above 4%), CDs (nearing 5%) or Treasury bonds (about 5%). You can link your current no-interest checking account to a money-market or online savings account for automatic transfers.

But earning some interest is still better than earning no interest.