LendingClub High-Yield Savings
LendingClub High-Yield Savings
The LendingClub High Yield savings account offers an impressive APY which stands up to comparison with many competitive accounts from other financial institutions. The interest is calculated daily and added to your account once a month, compounding with every statement cycle.
There are also some nice features, such as having an ATM card, which is not widely available with these types of accounts. However, there are some compromises to be had. This includes very limited branch access, a minimum initial deposit requirement and high overdraft fees. If you’re happy with these limitations, the LendingClub High Yield Savings account is certainly worthy of consideration.
Table Of Content
The Lending Club Savings account offers a variety of features for savers:
- High APY: As the name suggests, the High Yield Savings account offers a high APY which is well above the national average savings rate. The current rate is 4.25%, which is applied to your entire balance. It makes LendingClub as one of the highest-yield savings accounts available
- No Monthly Maintenance Fees: The account has no monthly maintenance fees or charges to worry about.
- No Minimum Balance Requirements: After the initial $100 deposit required to open the High Yield savings account, there are no minimum balance requirements for maintaining your account.
- ATM Card Provided: Unlike many high yield savings accounts, LendingClub provides an ATM card for those who want to withdraw from its savings account. LendingClub allows you to withdraw money from MoneyPass and SUM machines with no ATM fees. Additionally, if you use another ATM network, LendingClub will not impose an out of network fee. However, you may incur a charge from the ATM operator.
- Mobile and Online Banking: LendingClub has a mobile and online banking platform, which allows you to manage your account 24/7 365 days a year. The platform also has a number of useful features including mobile check deposit, and bill payment.
- Finance Toolkit: The account also provides access to a finance toolkit to help you to take control of your finances. This allows you to link external accounts and analyze budgets, spending and trends.
- Security and Notifications: LendingClub allows you to set custom alerts for your account and you can also set travel notifications. This allows you to manage your account without needing to be stuck on your computer or phone.
- Free Transfers: The High Yield Savings account allows you to make internal and external transfers without incurring any fees or charges.
No Minimum Balance Requirements
Only One Branch
ATM Card Provided
Mobile and Online Banking
New Account Limitations
Security and Notifications
Limitations To Consider
Of course, no account or financial product is perfect and there are some potential limitations or drawbacks to consider. These include:
- Only One Branch: LendingClub has just one branch in Boston, so if you’re outside this area, you will need to conduct all of your banking activities online. This will also limit the potential to deposit cash into your account.
- Minimum Deposit: You’ll need at least $100 to open a LendingClub High Yield Savings account. This is not unreasonable, but it could create a barrier to entry for some customers.
- Overdraft Fees: While there are minimal fees with this account, you may incur an overdraft fee of $25 per item plus $5 a day if your account remains with a negative balance after five calendar days. Although this is more of a drawback of the LendingClub checking account, you may still fall foul of this if you move money around from your savings account.
- New Account Limitations: LendingClub imposes some limitations on new accounts during the first 30 days. This includes a cap on ATM withdrawals of $50 per day.
CIT Bank Savings Account vs LendingClub Savings
At first glance, the Lending Club High Yield Savings and the CIT Bank Savings Connect accounts appear the same. Both offer a similar APY with no monthly maintenance fees and online account management. The similarities go even further. Both accounts have a $100 minimum initial deposit and a great app, which features mobile check deposit and money management tools.
However, there are two important differences. Firstly, the CIT Savings Connect account has been designed to work in concert with a CIT checking account. While it is possible to open an account independently, you won’t be able to access all of the account features without a linked CIT e-checking account.
The other key difference relates to ATM access. While LendingClub offers an ATM card so you can withdraw from saving along with no ATM fees, CIT does not provide an ATM card for the Savings Connect account.
CIT Bank Savings
Ally Bank Savings vs LendingClub Savings
Again, on the surface, the LendingClub High Yield Savings and Ally Savings appear similar. Both accounts have no monthly maintenance fees and offer online or mobile account management with an ATM card to access your funds. However, there are some fundamental differences which may influence which is a better option for you.
Firstly, Ally offers a slightly lower rate compared to LendingClub. While both accounts are classified as high yield savings, Ally’s rate is noticeably lower. However, Ally does not have any minimum initial deposit requirements. Ally also offers more sophisticated money management tools.
While you can still analyze your net worth with Ally as you can with LendingClub, Ally offers round ups and savings buckets. The latter allows you to save for different goals with “buckets” for each, so you don’t need multiple accounts.
Ally Bank Savings
How to Deposit and Withdraw Money
Since for the majority of customers, LendingClub is an online bank, you’ll need to consider all of the withdrawal and deposit methods to ensure that they work for you.
If you want to deposit funds into your account, the easiest way is to initiate a transfer from another account. However, you can also use the mobile check deposit feature within the app, or deposit funds at select ATMs. Just bear in mind that new clients have a daily limit for incoming and outgoing ACH transfers from an external account of $10,000 and there is a $50,000 limit on mobile check deposits.
There are also a number of ways to withdraw funds from your account. You can transfer funds to an external bank with no fee via ACH, and you can also wire funds, but this incurs a fee. You can also use the mobile app to make internal or external transfers and pay bills, or withdraw funds from an ATM.
Should I Open a LendingClub High Yield Savings Account?
Whether you should open a LendingClub High Yield savings account will depend on your requirements, preferences and circumstances. However, if you’re unsure if it is the right choice for you, there are several questions you should ask yourself.
- Do you have the $100 to open the account? This may seem like an obvious question, but if you’re starting your savings journey and don’t have a lot of spare cash, $100 may seem like a barrier to open the account. However, bear in mind that once your account is opened, there are no minimum balance requirements.
- Are you comfortable managing your account online? Unless you live near the one LendingClub branch in Boston, you’ll need to manage your account via the online platform or using the app.
- Do you need comprehensive savings tools? While LendingClub does have a finance toolkit, the features are not as comprehensive as offered with some other high yield savings accounts. If you are happy to have a financial overview with budgeting and spending analysis, you should find this account sufficient, but if you need more, you should consider other options.
- Is there a chance you’ll go overdrawn? While overdrafts are not usually an issue with savings accounts, if you do tend to slip overdrawn, you need to be aware that LendingClub has some hefty fees. These are not imposed by all banks and financial institutions, so unless you’re confident you’ll remain in the black, you may need to look elsewhere.
Opening a LendingClub High Yield Savings Account
If you live in Boston, you can visit the LendingClub branch to open an account. For all other customers, you can easily open an account online in a few simple steps.
- Navigate to the Product Page: On the LendingClub website, you will find the personal banking products under the “What We Offer” tab on the bar at the top of the page. From there, you’ll need to click on the High Yield Savings page and if you’re ready to proceed, click the red “Apply Online” button.
- Complete the Application: This is fairly standard, but you’ll need to ensure you complete all of the mandatory fields including your full name, phone number, address, email address, date of birth and Social Security Number.
- Verification: You’ll be prompted to verify that you are a US citizen or resident, choose a security phrase and verify your identity by providing a copy of your driver’s license, passport or other government issued photo ID.
- Fund Your Account: The final stage is to fund your account with $100 or more. You can do this via ACH transfer from another bank account or using your debit card.
Can I Open a Joint Savings Account?
Yes, it is possible to open a joint High Yield Savings account with LendingClub. All you need to do is check the box on the Basic Info application page where it states “I want to make this a joint account”. You will also need to provide all of the information for the second person. So, you’ll need their full name, address, email, phone number, date of birth and Social Security Number. LendingClub will also need to verify the identity of the second applicant.
Alternatively, you can add a second co-owner to your sole savings account after the account is opened by contacting the LendingClub customer service team.
Can you direct deposit into a LendingClub Savings?
Yes, it is possible to have your salary or other payments direct deposited into your LendingClub High Yield Savings account.
How do you close a LendingClub High Yield Savings?
The easiest way to close your LendingClub High Yield savings account is to call the customer service helpline. A representative can then guide you through the closure process.
How much can I withdraw?
There is a $500 daily ATM withdrawal limit and new customers may also have limits on the amount that they can transfer in the first 120 days.
Can I transfer my IRA to a LendingClub Savings?
It is possible to transfer an IRA to your high yield savings account, but whether this is the best option for you will depend on your circumstances. You should speak to your advisor about the tax consequences before making a decision.
Does LendingClub offer a health savings account?
No, LendingClub does not offer health savings accounts at this time.