In an age of all things electronic, Internet-based banks are gaining ground, especially among college students.

According to a recent survey, 50 percent of college students use online bill-paying services, compared to 28 percent of the general banking population.

"Today's college students represent a new wave of bank customers who will never set foot in a bank branch," said Jerry McCoy, chief marketing executive for NetBank, an Internet-based bank. "They recognize that banking online is more convenient to their lifestyle and allows them to focus on more important tasks such as school work and extracurricular activities."

Nearly 92 percent of students in the NetBank survey said they arrive at college with their own computer and 87 percent are able to connect to the Internet from their dorm or apartment without any problems. Two out of three say it's important to them that their bank offer online banking and bill-paying features.

Internet-based banks are attractive to college students because of their ease of use and, in some cases, access to a network of fee-free ATMs. Busy students can set up automatic online payments, reducing the likelihood of missing or being late paying a bill. And because they don't have the costly overhead associated with maintaining and staffing branch offices, Internet banks can offer lower service fees and higher interest rates - up to five times the national average.

With Internet banks, students no longer need to set up a new checking account in their college town. Students can set up their Internet checking accounts in advance - all that's needed is an e-mail account and their driver's license. Then, instead of waiting in line at the bricks-and-mortar bank and dealing with starter checks, students can arrive at college with pre-printed checks and an ATM debit card or bank credit card.

Online banking also enables parents to transfer money to their student's account electronically. When the student's account gets low, transfers are simple and fast.