LendingClub Rewards Checking
Fees
Minimum Deposit
Promotion
Our Rating
LendingClub Rewards Checking
Fees
Minimum Deposit
Promotion
Our Rating
As the name suggests, LendingClub is best known for its loans, but in recent years, this financial institution has expanded its product line to include banking products. They now offer CDs, savings, and a Rewards Checking account, making it one of the leading online banks in the nation
The Rewards Checking account is designed to offer not only the features you would expect from a checking account. You can use the account to pay bills, receive your paycheck and make purchases via the debit card. However, it also provides cash back on qualifying purchases and the potential to earn interest.
LendingClub Rewards Checking: Account Features
Designed to provide a seamless banking experience, LendingClub Rewards Checking combines traditional banking services with innovative tools and rewards. Here are the main account features:
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Cash Back
You can earn 1% cash back on your qualified purchases with no cap. All you need to do is use your Rewards Checking debit card for qualifying purchases and maintain an average balance of $2,500 or more.
Qualifying purchases are signature based purchases that are “credit” rather than “debit” point of sale transactions. However, purchases of cash or cash equivalents including currencies, crypto, loan payments or prepaid cards do not qualify for cash back.
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Interest Bearing
If you have a balance of $2,500 or more, you can earn interest on your account balance. The current rate is up to 0.15%.
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Limited Fees
The account has no monthly maintenance fees, overdraft charges or insufficient fee penalties. You can also enjoy unlimited rebates for surcharges that other banks charge you. The ATM fees will be automatically rebated to your account at the end of each statement cycle.
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Mobile App
You can manage your Rewards Checking account online or using the LendingClub mobile app. This app is intuitive and allows you to schedule bill payments, deposit checks and manage all aspects of your account 24/7 from anywhere.
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Finance Toolkit
The LendingClub Rewards Checking account features financial management tools integrated into the platform. These are designed to help you to take control of your finances with spending tracking, budgets and adding external accounts.
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FDIC Insurance
LendingClub has FDIC membership, so customers can enjoy FDIC protection. Should LendingClub fail, your funds are covered up to a limit of $250,000 per account category, per depositor, per institution.
Is the LendingClub Rewards Checking Account Good?
There is no easy answer to this question, as you will need to consider your unique requirements, preferences and circumstances.
However, as with all financial products and services, there are both pros and cons associated with the LendingClub Rewards Checking account which should highlight if it could be a good fit for you
Pros | Cons |
|---|---|
Free ATM Access | Limited Branches |
No Minimum Balance Requirements | Minimums to Earn Interest |
Early Access to Your Paycheck |
Cash Back Minimums |
Access to Budgeting Tools | |
Free Checks
|
- Free ATM Access
While LendingClub does not operate its own ATM network, it is partnered with MoneyPass, NYCE and SUMTM networks to offer its customers fee free ATM usage nationwide.
However, you can also enjoy ATM fee reimbursements if you use a non network machine anywhere in the world.
- No Minimum Balance Requirements
While you do need to hit the minimum balance to qualify for interest, there are no minimum balance requirements to maintain your account.
- Early Access to Your Paycheck
If you use the Rewards Checking account to receive your salary as a direct deposit payment, LendingClub will make the funds available as soon as the payroll files have been submitted by your employer.
This means that you may be able to access your pay up to two days earlier.
- Access to Budgeting Tools
The LendingClub platform includes a number of built in budgeting tools to help you to get your finances on track.
You can create a budget, analyze your spending trends, create debt repayment plans and even link external accounts, so you have an overview of your entire finances in just oneplace.
- Free Checks
This account does have check writing abilities and LendingClub will pay for your first order of paper checks.
- Limited Branches
For all intents and purposes, this is an online only account, since LendingClub only has one branch location in Massachusetts.
- Minimums to Earn Interest
The account has a tiered APY, but to earn any interest on your balance, you need at least $2,500 in your account.
If you want to access the highest rates, you’ll need to have $100,000 or more in the account.
- Cash Back Minimums
If you want to earn cash back on your debit card purchases, you’ll need to have a minimum of $2,500 in your account.
Additionally, there are a number of exclusions, so you’ll need to check whether your typical transactions would qualify for cash back.
Which Type of Customer is Best Suited to LendingClub?
Since there are minimums to qualify for interest and cash back, this account is best suited for starters and those who prefer online banking. LendingClub doesn't offer a variety of products, but it has all you need when you start your financial journey.
However, the account does offer some excellent budgeting and financial tools, which could be helpful for those who want to get their finances under control. Since you only need $25 to open the account and there are no ongoing balance requirements, it could provide a good solution for those who want to get to grips with their day to day finances.
Is LendingClub Good?
LendingClub is primarily known for its lending products, so a great deal of its reputation and consumer feedback relate to this area. As such, there are both positive and negative comments about LendingClub and its services. However, LendingClub has an overall solid reputation on consumer feedback platforms, such as Trustpilot.
One fo the advantages of LendingClub is its decent product line up. While there is not a great deal of choice within each banking product category, if you are looking to move all of your day to day finances under one roof, you should find a good selection.
LendingClub rates stand up favorably to comparison, particularly if you’re moving from a traditional bricks and mortar bank.
How to Open a LendingClub Rewards Checking Account?
LendingClub makes it easy to open an account online and you can complete the process in just a few steps.
- Navigate to the Rewards Checking Page: You’ll find the Rewards Checking product page on the official LendingClub website, under the “What We Offer” tab on the top bar. This will direct you to a page with all the account details and if you’re ready to open an account, you just need to click the “Apply Online” button.
- Complete the Application Form: This is fairly standard and will seem familiar if you’ve ever opened a bank account online before. You’ll need to complete all the mandatory fields including your full name, address, date of birth, email, phone number and Social Security Number.
- Verify Your ID: As with all financial institutions, LendingClub is required to verify the identity of all account applicants. When prompted, you’ll need to provide a picture of your driver’s license, passport or other government issued photo ID.
- Fund Your Account: The Rewards Checking account requires a minimum initial deposit of $25. So, the final step of the account opening process is to fund your account via external transfer or transfer from another LendingClub account.
FAQs
Does the LendingClub Rewards Checking earn interest?
Yes, you can earn interest on funds in a Rewards Checking account, but you’ll need to have a balance of at least $2,500 to qualify. If you want access to the highest APY available, you will need at least $100,000 in your account.
Does LendingClub offer a promotion?
LendingClub does not typically offer promotions for new accounts
How do you close a LendingClub account?
The easiest way to close your Rewards Checking account is to call the customer support phone line. A LendingClub representative can guide you through the process and initiate your closure request.
How We Review Checking Accounts: Our Methodology
The Smart Investor team has conducted a comprehensive review of checking accounts offered by various banks, taking into account several key factors to provide a thorough evaluation. Here's how we rated them across four important categories:
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Checking Account Features (60%): We meticulously assessed the features and benefits associated with each bank's checking accounts. Factors considered include account fees, minimum balance requirements, ATM access, overdraft protection, online and mobile banking functionalities, and additional perks such as rewards programs. Higher ratings were awarded to banks offering a wide range of features and benefits that cater to diverse customer needs, ensuring convenience and flexibility in managing finances.
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Customer Experience (20%): A positive customer experience is essential 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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Diversity of Other Financial Products (10%): We also considered the diversity of other financial products offered by each bank, such as savings accounts, loans, credit cards, and investment options. Higher ratings were given to banks with a comprehensive suite of financial products, allowing customers to meet their various banking and financial needs in one place.
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Bank Reputation (10%): The reputation of a bank is a crucial factor in decision-making. We examined factors such as financial stability, regulatory compliance, and public perception to determine each institution's overall trustworthiness and reliability. Higher ratings were assigned to banks with strong reputations, reflecting their credibility and ability to inspire confidence among customers.
By considering these categories and assigning appropriate weights to each, our review aims to provide valuable insights to help individuals make informed decisions when selecting a checking account
