LendingClub Bank
Fees
Minimum Deposit
Our Rating
APY Savings
LendingClub originated as a peer to peer lending marketplace, matching borrowers with investors who would fund the loans. It was founded in 2007 and in its first 10 years of operating, LendingClub had almost $9 billion in loans.
However, in recent years, LendingClub has expanded its product line to create a more rounded banking experience for its customers.
Compared to other financial institutions, LendingClub does have a limited banking product line, it offers a solid choice for online personal loans, checking, savings and CDs.
LendingClub aims to streamline the process of managing your money with tools to help track your spending habits, debt and net worth via the online platform and mobile app.
LendingClub is an online only financial institution, but it has a comprehensive ATM network across the country, competitive rates and high scores for its customer service.
- Joint Loan Accounts Available
- Minimal Fees
- Excellent App
- ATM Network
- Limited Account Options
- Online Only
- Origination Fees
- High Requirements for Checking Rewards
What is required to open a LendingClub account?
As with any financial institution, LendingClub needs to adhere to the regulations to prevent fraud. So, you will need to provide your personal details and prove your ID and address.
Is my money safe on LendingClub?
LendingClub is FDIC insured, so you are protected up to $250,000 per depositor per account type should the institution fail.
Does LendingClub offer a free checking account?
LendingClub does have a monthly fee free checking account, but if you want to qualify for interest on your balance and cash back on your debit card transactions, you will need to meet the balance and/or direct deposit requirements.
Table Of Content
Banking Services | Credit Options | ||
|---|---|---|---|
Savings Accounts | Mortgage | ||
Checking Accounts | Government Mortgage | ||
CDs | Credit Cards | ||
Money Market Account | Debit Card | ||
Investing Capabilities | Personal Loans |
LendingClub High-Yield Savings
APY Savings
Minimum Deposit
Promotion
Fees
LendingClub High-Yield Savings
APY Savings
Minimum Deposit
Promotion
Fees
LendingClub has only one savings account offering, which is an impressive option. This account offers one of the highest available interest rates for high yield savings accounts that is 10-15 times the national average savings rate.
The account has no minimum balance requirement and no monthly fees, but you need to fund the account with at least $100 to open it.
The LendingClub savings account is easy to open online and you can fund the account using your debit card or via an ACH transfer. Once your account is opened, you can request an optional debit card that is provided free of charge.
There are also two options to manage your account, either using the online platform or via the mobile app available for Android and iOS devices.
The key features of the LendingClub savings account include:
- Earn 4.50% APY on savings with no balance requirements, one of the top high-yield savings plans available.
- Accounts are FDIC insured up to $250,000 per depositor
- No monthly maintenance fees
- External transfers are free with no limits
- Optional free ATM debit card
- You can open the account in just three minutes
- Online and mobile banking to manage your account 24/7
LendingClub CDs
APY Range
Minimum Deposit
Terms
Fees
LendingClub CDs
APY Range
Minimum Deposit
Terms
Fees
While LendingClub may not have the vast choice of CDs offered by some financial institutions, it does have some great options.
While LendingClub only offers traditional CDs, you can choose a one-year, 18-month, two-year, three-year, or five-year term. The minimum deposit requirement is quite high, $2,500, and the deposits are FDIC-insured.
The LendingClub CDs tie up your funds, and you will incur a penalty if you want to withdraw before maturity. Upon maturity, you will have a 10-day grace period to withdraw the funds or make additional deposits before automatic renewal.
Term | APY |
|---|---|
6 months
| 4.00% |
12 months | 3.75% |
18 months | 3.50%
|
24 months
| 3.50% |
36 months | 3.50% |
60 months | 3.40% |
LendingClub Rewards Checking
Fees
Minimum Balance
Promotion
APY Checking
LendingClub Rewards Checking
Fees
Minimum Balance
Promotion
APY Checking
LendingClub only offers one checking account option, but it is a reward checking account. The key features of the LendingClub checking account include:
- Low minimum: You need a minimum of $25 as an opening deposit, but there is no minimum balance after that.
- No Fees: This is a no-fee checking account with no overdraft, monthly maintenance, or incoming wire transfer fees. There are also no ATM fees since LendingClub will reimburse you for any ATM fees other banks may impose with no limits or maximum refund amounts.
- 1% Cash Back On Your Purchases: However, what makes this account stand apart from other financial institutions is that you can earn rewards. In addition to the account being interest-bearing, if your balance is $2,500 or higher, you can earn 1% cash back on your purchases.
You must have had the account open for at least 30 days to receive the cashback. The other qualification criteria are maintaining an average balance of $2,500 or higher in the account or receiving at least $2,500 in direct deposits per month. To receive cash back, select “credit” rather than “debit” at in-store checkout to ensure eligible purchases.
- Online Account Features: Early paycheck is an important banking feature, which means that you can be eligible to receive your direct deposit paycheck up to two days early. As with other LendingClub accounts, the Rewards Checking is FDIC insured up to $250,000 per depositor.
LendingClub Loan Products
LendingClub is best known for its loans, and there are two types of loan products; personal loans and auto refinancing. The LendingClub personal loans are quite flexible and can be used for debt consolidation, home improvements, or any other purpose. LendingClub also makes it easy to use the loan proceeds for debt consolidation, as you can nominate up to 12 creditors to receive funds directly to simplify the consolidation process.
You can check your personal loan rate on the LendingClub website without impacting your credit. LendingClub will only use a soft credit pull, so you can check the rate and terms. The company will only initiate a hard pull when you proceed and a loan is issued.
The personal loans have a fixed rate with a term of up to five years, but LendingClub does allow joint applications if you are concerned that you may not be offered a competitive rate on your own.
Auto Loan And Auto Loan Refinance Also Avaiable
LendingClub also offers loans for vehicle purchase or refinance. The lender aims to help you to refinance your existing car finance deal to lower your monthly payments.
There are some restrictions about which auto loans may be refinanced, as your vehicle needs to be for personal use only, less than 10 years old with under 120,000 miles and have at least 24 months of payments remaining on your current loan.
If your vehicle qualifies, you can check your rate to see the offers you could prequalify for and there are no prepayment penalties or origination fees.
Upon approval and funding, LendingClub will pay off the lender to make the transition to your new loan, simple, easy and secure.
Pros and Cons of LendingClub
As with any financial institution, there are both pros and cons associated with LendingClub.
Pros | Cons |
|---|---|
Minimal Fees | Limited Account Options |
Limited Account Requirements | Online Only |
Joint Loan Accounts Available | Origination Fees |
Excellent App | Requirements for Checking Rewards
|
Loan Direct Creditor Payments | |
Prequalification Available
|
- Minimal Fees
LendingClub does not impose overdraft fees, monthly maintenance fees or ATM charges on its checking or savings account, which can significantly reduce the operating costs of managing your day-to-day finances.
- Limited Account Requirements
Unlike many checking and savings accounts, you don’t need to maintain a specific balance to qualify for no monthly maintenance fees.
However, you do need a minimum balance or receive direct deposits above a specified level to receive rewards on your checking account, including interest.
- Joint Loan Accounts Available
LendingClub allows joint applications for bank accounts and loans, which may be appealing to those who may struggle to obtain a competitive rate on their own.
If you're looking for a good joint bank account, this is one of the best online-only options.
- Excellent App
LendingClub has an excellent app and online platform that makes it easy to manage your account 24/7.
- Loan Direct Creditor Payments
If you are using your LendingClub loan to consolidate your debts, LendingClub will send direct payments to up to 12 creditors, which can streamline the consolidation process and reduce additional interest charges on your current loans and credit card debt.
- Prequalification Available
if you’re applying for a loan product, you’ll appreciate that LendingClub does offer prequalification with a soft credit pull. This allows you to check your rate and term without impacting your credit.
- Limited Account Options
If you prefer to compare different options for checking, saving and CD accounts, you may find LendingClub limited, since there is only one of each type of account on offer.
- Online Only
LendingClub is an online financial institution, so you won’t have access to branches or in person support if you have any queries or questions.
- Origination Fees
Your LendingClub loan may incur an origination fee, which you will need to factor into your calculations to ensure the loan is the best option for you.
- Requirements for Checking Rewards
While offering a rewards checking account is admirable, the requirements to receive both interest and debit card cash back are quite high.
You need at least $2,500 to qualify for interest and you need to maintain this level of balance or receive $2,500 or more in direct deposits each month to earn cash back.
LendingClub Customer Service Feedback
LendingClub has a solid reputation as a financial institution and for its levels of customer service. LendingClub has a B+ BBB rating and an excellent rating on Trustpilot at 4.8/5.
Customer reviews praise the ease of the application process and the customer service standards. However, there are a few negative comments that note high APR rates, slow funding times and delays to disbursements.
One area where the LendingClub customer service may fall down is the limited avenues of contact. The LendingClub does have a comprehensive help section with answers to frequently asked questions and blog articles. However, if you do want to speak to someone, the only way to access the customer service team is via phone.
LendingClub does have a toll free number, but there is no contact email address on the website, online chat or other ways to access customer support that are common with other financial institutions.
How to Open a LendingClub Account?
You can open a LendingClub savings account in less than three minutes, but the basic process for opening a saving, checking, or CD account is similar.
Since LendingClub is an online financial institution, the website has been designed to make it easy to open an account in a few basic steps.
- Click on the Apply Button: The first thing you need to do is find the appropriate product page on the LendingClub website and click the “Apply” button.
- Complete the Application Form: After you click “Apply Online”, you’ll be directed to an online application form. You’ll need to provide some basic personal information, such as your full name, address, phone number, email address and Social Security Number. You’ll need to complete all the mandatory fields, but some fields are optional.
- Provide Supporting Documentation: As with any financial institution, you will need to support your account application with proof of your ID and address. Acceptable documents for proof of ID are government issued ID such as your driver’s license or passport, while you can prove your ID with a utility bill or bank statement. LendingClub will guide you through how to submit copies of your documentation.
- Await Approval: Once you submit your application and supporting documentation, LendingClub will assess your application and provide an approval decision. Depending on the type of account, you may receive an approval decision quickly, but in most cases, you will need to wait a day or two.
FAQs
Is LendingClub worth it for Joint Accounts?
LendingClub does offer joint accounts, and with minimal fees, you may find it beneficial. They are also included in our best bank accounts for joint accounts.
Can you buy/invest in gold via LendingClub ?
LendingClub does have an investment arm, but there are no direct gold buying facilities.
What's the main reason to skip LendingClub?
If you prefer the option of several account choices to find the perfect checking or savings account or you want to maximize the returns with different types of CDs, LendingClub is not the right choice for you.
The Smart Investor Banking Reviews: Methodology
The Smart Investor team extensively reviewed hundreds of banks and credit unions. We assessed them based on four main categories, each with specific features:
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Diversity of Products and Their Attractiveness (40%): We extensively analyzed the breadth and appeal of each bank's product offerings, including savings accounts, checking accounts, loans, investment options, and more. Higher ratings were assigned to banks with a diverse range of products that are attractive in terms of interest rates, fees, terms, and additional features. This category provides insights into the variety and value of the bank's offerings, crucial for meeting customers' diverse financial needs.
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Account Features (30%): This category delves into the features and benefits accompanying each bank's accounts. We scrutinized factors such as promotions, deposit and withdrawal options, ATM accessibility, online and mobile banking functionalities, as well as additional perks like overdraft protection and rewards programs. Banks offering comprehensive and convenient features received higher ratings, reflecting the overall value of their accounts to customers.
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Customer Experience (20%): A positive customer experience is paramount in banking, so we evaluated each bank's performance in this area. This included assessing the ease of account opening, quality of customer service, availability of support channels, and overall user satisfaction. Ratings were based on factors such as responsiveness, efficiency, and the bank's commitment to meeting customer needs, ensuring a seamless and satisfactory banking experience.
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Bank Reputation (10%): The reputation of a bank is a critical consideration for customers. We examined factors such as financial stability, regulatory compliance, and public perception to determine each institution's overall trustworthiness and reliability. Higher ratings were awarded to banks with strong reputations, reflecting their credibility and ability to inspire confidence among customers.
By considering these categories, individuals can make informed decisions that align with their financial needs and preferences, ensuring they choose a bank that offers competitive products, excellent features, a positive customer experience, and a solid reputation.
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