The commercialization of the internet has opened a whole new world of online services to humans. Everything that was done traditionally can now be done online much quicker and at a low cost. An example of such a transformation is online banks. They provide faster and more convenient services than traditional banks where you no longer need to stand in long lines to avail yourself of services like opening a new account, transferring funds or applying for a loan.

This convenience initiated the rise of online banks or internet-only banks. These establishments offer online banking services without requiring a chain or branch office. As the demand for these virtual banks grew, more and more people started practicing banking online.

Pros of online banks

You must wonder why I should opt for online banks when most traditional banks have a significant virtual presence. The truth is these online banks offer many advantages to their consumers as compared to traditional banks.

• Less fee and better interest

Online banks offer a higher interest rate on annual percentage yields (APYs) on savings. The most generous of online banks will offer 1-2% more than what you earn on savings at a traditional bank.

Along with that, online banks will not impose you with several fees deduction like most traditional banks.

• Enhanced online experience

Traditional banks are putting greater force to improve their online presence and services like banking apps and websites, yet they fall behind online banks when it comes to the online banking experience.

Best online banks of the US

Here is the list of the top 5 online banks in the US

• Chime Bank

Chime is an American financial tech company that provides no-fee mobile virtual banking services by The Bancorp Bank.

Chime is one of the best online banks in the United States. It suits best to customers looking for simple online banking services with zero monthly maintenance fee or no minimum balance requirements.

Chime offers some of the best top-in-line online services to its consumers:

• You can open a Chime savings account with no minimum balance requirements
• You can open a spending account and enjoy fast and safe Chime direct deposit service.
• You can avail the wide network of Chime  ATMs.
• Use a debit card for international foreign transactions fees.

2. Quontic Bank

Quontic is an adaptive online bank and is a community development-oriented financial institution. Quontic’s main pursuit is to provide banking solutions and home financing opportunities to the unbanked or underserved.

Some of the plus points of option for Quontic are:

• You can earn up to 1.5% cashback in the form of bitcoin on eligible debit card purchases.
• You can earn a high rate of interest on savings or checking accounts.
• Zero to no maintenance fee.

3. Axos Bank

Axos Bank is an American federally chartered loan and savings association. This bank offers a wide range of advanced financial products and services.

Pros of joining Axos Bank are:

• You can earn a higher interest on both checking and savings accounts.
• Gain reimbursements on all domestic non-Axos ATM charges.
• Zero monthly maintenance charges.
• Authorisation by biometrics.

4. Varo Bank

Varo is an American mobile-only bank that provides through its dedicated mobile app. Varo currently has over 1 million users.

Varo also offers one of the highest interest rates as compared to other online banks on its savings accounts. Some of the advantages Varo users are:

• You can earn around 3% interest on a savings account.
• No monthly charges on a savings account.
• No minimum balance is required to open an account.
• You can earn up to 15% cashback on particular purchases.

5. Discover Bank

America based online bank known for best customer service and credit card rewards. It provides financial services like credit cards, loans, checking and savings accounts and retirement accounts.

Some reasons why you should consider Discover Bank are:

• A high customer satisfaction priority.
• Great cashback rewards series
• You can earn high interest on your savings account
• Zero minimum opening balance is required.