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LendingClub Bank Review 2023: Checking and Savings Accounts
LendingClub is one of the more interesting online banks we’ve reviewed lately. First up — it is an online bank, which means no physical branches, though that’s not necessarily unusual anymore. What makes LendingClub Bank unique is that it’s the first proper mix of fintech and online banking.
LendingClub Bank actually started life as Radius Bank in 1987 and transitioned to online-only banking in 2012, closing its brick-and-mortar locations. LendingClub is also a fintech — financial technology — company that offers personal loans online. In 2020, LendingClub acquired Radius and renamed it LendingClub Bank. This acquisition marked the first time a fintech company had purchased a U.S. bank, and the promise was that LendingClub Bank would be able to offer the best of both worlds.
Today, LendingClub Bank offers an array of competitive online banking accounts and services, including a very compelling checking account option.
Is LendingClub Bank right for you? Read on to find out.
LendingClub offers one of our favorite checking accounts right now: Rewards Checking. Unfortunately, if you don’t qualify for it, you don’t have many other options.
The LendingClub Bank Rewards Checking account offers account holders a fee-free checking experience with a $25 minimum starting balance and no monthly minimum balance requirement. The account earns a reasonable interest rate of between 0.10% and 0.15% (depending on balance), which is a nice bonus that many checking accounts don’t offer.
Even more interesting is the cash back available on this account — as long as you maintain an average balance of $2,500 or more each month, or receive at least that much in direct deposits each month, you can earn 1.00% cash back on your debit card purchases. While maintaining a $2,500 average balance may be a stretch for some, the direct deposit criteria is much more achievable and makes this a compelling checking account option.
LendingClub Bank’s single savings account option offers a very competitive interest rate, provided you meet the minimum balance requirement of $2,500. Below that, it’s less interesting.
The LendingClub High-Yield Savings account is frankly fantastic. The balance does not matter, you will earn an excellent 3.60% APY, and you only need a minimum deposit of $100 to get started. On top of that, you get a free ATM card with no fees, so your funds are easily accessible.
Previously, the only real issue we spotted was that accounts with balances below $2,500 earned a much lower interest rate. That has since changed, with LendingClub’s High-Yield Savings Account now providing the same interest rate no matter the balance. That said, the more money you have saved, the more interest you earn, so here’s some smart savings strategies that will help you get that balance up in no time.
LendingClub’s other offerings are fairly standard. There’s a CD option with a wide range of term lengths, as well as the expected array of personal loans. Most interesting are the personal finance options available through partnerships with other institutions.
LendingClub Bank offers an array of CDs for longer-term investments. Terms run the gamut from 6 months to five years and offer interest rates of between 3.25% to 4.10% APY depending on the term.
CDs differ from standard savings accounts in a couple of ways:
For these reasons, they don’t necessarily make the best general-purpose savings accounts. They’re better-suited to situations where you know your money will have time to mature and earn.
The LendingClub CD options are decent, though we think they’d be best as an additional savings account if you’re already using LendingClub Bank, rather than as a standalone product.
LendingClub also offers personal loans — in fact, that’s how the company got its name. LendingClub offers loans up to $40,000 for credit card consolidation, balance transfers, debt consolidation, and more. The rates are fixed, and funding can be available in just a few days. Additionally, they now provide small business loans between $5,000 and $500,000 thanks to partnering with Accion Opportunity Fund.
If you’re already using LendingClub Bank and need to take out a personal loan, it may make sense to keep things under one roof. At any rate, it certainly doesn’t hurt to have the option.
The mobile experience is important with any bank, but for online banks it can make or break the experience. We’re happy to report that LendingClub Bank’s suite of apps is outstanding.
The standard mobile app is easy to use and offers all the features you’d expect, including:
There are also features available to help you better manage your finances, set a budget, and keep track of trends in your income or spending. Finally, the LendingClub Marketplace is a tool built into the app that helps customers find financial products from LendingClub partners, including life insurance, student loan refinancing, and more.
Wondering if LendingClub Bank is right for you? Our list of pros and cons could help you decide.
Have questions about LendingClub Bank? We have answers.
Absolutely! LendingClub has built a solid reputation for its online personal loan products. The company has reasonable requirements for new accounts and loan applications, and is transparent with fees and other charges. In our searching, we couldn’t find anything that threw up any red flags. Additionally, LendingClub Bank was originally Radius Bank, which was a regulated, brick and mortar bank.
Yes, LendingClub is an FDIC insured online bank. That means that any money you deposit with LendingClub is insured for up to $250,000 per depositor. This is important in the event that the bank fails for any reason, as it prevents the money in your checking or savings account from disappearing due to no fault of your own.
LendingClub Bank started life as Radius Bank in 1987 and transitioned to online-only banking in 2012, closing its brick-and-mortar locations. LendingClub is also a fintech — financial technology — company that offers personal loans online. In 2020, LendingClub acquired Radius and renamed it LendingClub Bank. This acquisition marked the first time a fintech company had purchased a U.S. bank.
Penny Hoarder contributor Dave Schafer has been writing professionally for nearly a decade, covering topics ranging from personal finance to software and consumer tech. Freelancer Dennis Lynch contributed to this report.
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