Most people are fully aware that investing usually involves fees or commissions, and mutual funds are no different. We are always told to invest in funds with low fees so that we can maximize our returns. That makes perfect sense, but what are all the different types of fees you hear about?

• Sales Charges - These are also called loads, but it is the fee based on a percentage that is applied to your purchase of a mutual fund. Funds can have front-end loads that are applied once upon the initial purchase,or back-end (also known as deferred loads) that may be applied over time or upon sale of the fund. Generally, front-end load funds are called Class A, and back-end loads will be Class B shares. There are also many mutual fund companies and special share classes that offer no-load funds. The total cost of the sales charge can vary and range anywhere from under 1% to over 5% of your investment.
• Management Fees - Even if your fund has no sales charge, it still costs money to run and manage the fund. These fees are paid by investors in the form of an ongoing expense that is subtracted from the fund's performance. Management fees pay the fund managers and employees of the fund company. Management fees can range from just a fraction of a percent to over 1% per year.
• Administrative Fees - In addition to the management fees, administrative fees pay for other operating expenses of running the mutual fund. These expenses include statement mailing, record keeping, customer service, and so on. You can expect to pay anywhere from 0.1% to 0.4% each year on average.
• Marketing and Distribution Fees - Some funds also charge fees to cover the cost of marketing and promotion for the fund. These fees are commonly referred to 12b-1 fees.

While it may seem like there are a lot of fees to be concerned with, it isn't as complicated as you might think. The management, administrative, and 12b-1 fees are all added together and typically reported as the fund's expense ratio. The expense ratio is what is most commonly reported on financial websites. For example, if a fund has no load or sales charge, and an annual expense ratio of 0.5%, that means every $1,000 invested in the fund will basically cost you $5 in fees each year. Of course, you don't pay these fees out of pocket, but they are automatically factored in and deducted from the fund's performance.

With the many layers of fees, you can see that it can be costly if you wind up paying a sales charge and an additional high expense ratio from the other fees. Your best bet is to stick to no-load funds with low expense ratios if you do your investing on your own. It is also a good idea to check on your 401k fund offerings if you participate in one so that you can take advantage of the low-fee funds if they are available.

Stock market got you down? Looking to put more money away in case of an emergency? If so, you've probably been thinking about stashing more money away in the bank. One of the benefits of the bank is that it provides you safety with FDIC insured funds, and your money is easily accessible. Unfortunately, most banks offer dismal interest rates on basic savings accounts. If you're looking for relatively high interest, you're faced with the likelihood of buying CD which locks your money up for a period of time, or depositing a large sum of money to take advantage of the higher rates they offer. But if you're just getting started or don't want to tie your money up, there's no reason to let your money sit and not even keep up with inflation.

That's where online banks come in. There are plenty of online banks that have sprung up in the past few years, and their big attraction is the ability to deposit small amounts of money into a savings account and still take advantage of interest rates that compete with, or even exceed CDs at your local bank. Of course, these online banks aren't for everyone, but they can be a great way to put your savings account to work so that you're at least keeping pace with inflation.