Written by Jessica Merritt | Edited by Michael Kitchen | Published on 12/10/2024
LendingClub offers a range of FDIC-insured deposit bank accounts along with its better-known personal and business loans. These include checking and high-yield savings accounts, certificates of deposit and business banking options.
Based in San Francisco, LendingClub is a fully online bank with no physical branches. You can manage your LendingClub account through the bank’s website or mobile app and deposit cash at MoneyPass ATMs.
LendingClub’s Rewards Checking account earns unlimited 1% cash back on debit card purchases. You can earn interest on your deposits with a 0.10% annual percentage yield (APY) on balances more than $2,500 and a 0.15% APY on balances of $100,000 and above.
The Rewards Checking account also includes free access to ATMs and unlimited ATM fee rebates at other banks' ATMs. You won’t be charged a monthly maintenance fee or overdraft fees, and there’s no minimum balance or transaction requirement.
With a LendingClub LevelUp Savings account, you can earn 4.75% APY as long as you deposit at least $250 per month. There’s no minimum balance required and no account fee.
LendingClub fixed-rate CDs require a minimum opening deposit and offer terms ranging from six months to five years. You can earn up to 4% APY with a 6-, 10- or 12-month CD term.
The LendingClub mobile app lets customers perform banking tasks such as mobile check deposits, transfers, bill payments, and monitoring of transactions and credit.
You can reach customer service by calling 800-242-0272 from 8 a.m. to 8 p.m. Eastern time Monday through Saturday.
Pros and cons of LendingClub
Pros:
• No overdraft, monthly maintenance or incoming wire transfer fees are charged.
• It offers a competitive 4.75% APY on savings accounts when you deposit at least $250 per month.
• The robust LendingClub mobile app makes it easy to manage your account.
Cons:
• The bank has no physical branches.
• CD terms are limited compared with other banks that offer longer-term options.
• Cash deposits can be made only at MoneyPass ATMs.
Outstand Rate, Outstanding Service
I was a successful, happy investor in Lending Club before they became Lending Club Bank. When they posted about the high interest rate offered I jumped at it. I have no idea why there are so many negative reviews. My experience has been 100% positive. Never any delays, denials, held checks or funds, or difficulty communicating with them.
Founders Rate Dropped To 5% Very Long Holds On Deposits
Not sure why electronica deposits are held for up to a week before they are available.
Not As Sophisticated As They Appear
I applied for a high-yield savings account. The website seems clear and the application process seems simple. That is because the website information is not complete and the application approval relies on a credit pull. The website’s FAQ says:
“Yes, we do a soft pull of your credit. Soft pulls do not affect your credit score. Please note, if you have placed a credit or security freeze on your credit report you’re application may need to be manually reviewed. If the application needs to be manually reviewed it can take up to 5 business days.”
I have a freeze on all of my credit reports. I made an application, expecting to learn more about the manual review. NONE WAS OFFERED. When I inquired via chat, this is the response I received:
“Your application was declined because of the funding and YOUR CREDIT REPORT BEING FROZEN. You can reapply after you unfreeze your credit, but you must use a different funding source.
I then asked “Which credit agency do you want unfrozen?”
Response from Lending Club, “ I would unfreeze them all to be safe”
This ‘unfreeze them all’ is totally crazy. While I generally avoid institutions that require this additional hassle, when I have done so for a few credit unions, they tell me in advance which credit bureau they are using. This hassle is not worth the 10 bp advantage over my account at National Cooperative Bank (NCB).
A few other observations from the application process (since I am the first to review):
You might have noticed that Lending Club has some sort of objection to my funding source, NCB.
During my initial application attempt, the website offered two methods of linking to my funding source. They recommended using “Plaid”. Some commenters on this site have objected to using Plaid at other institutions since you have to provide your log in credentials. I proceeded anyway. While Plaid recognized NCB during the initial step of the process, they came back with a response that they could not find a checking or savings account of mine at that institution, although I have a MMA there. So I proceeded with the alternative approach of using the NCB account number and routing number. That resulted in my application rejection as describe above.
Apparently Lending Club has some problem with NCB, which they do not explain, merely giving a hard "NO." So much for my intended funding source.
Before attempting the application process, I use their “chat” feature to find out more about online banking transfer limits, if I opened a High Yield Savings (HYS) account. This turned out to be a chat bot, which gave me a link to follow for the answer to my question. I was not comfortable that I was getting an answer that applied to the HYS, so I called. That customer service rep said the link was valid, but the answer was “more nuanced.” That link showed several transfer limits defined by the account balance and time the account was open. The rep said that for HYS, the account starts at the “preferred” level (the third of 5 or 6 levels) which is $10,000 daily. Of course none of this is indicated on website tools, you have call to get the true story.
I had also used the chat bot to ask how many external accounts could be linked to the HYS account using online banking. The bot could not understand my question, but give an option to link up with a live person on chat. That rep told me “There is currently no limit for how many external banks can be linked to an online banking account.”
During the application process, I was limited by the system to initial funding of my account of $250, pretty limiting given a $10,000 daily limit. However, the rep I talked to about limits told me I could request one-time exceptions to that daily limit. He also said there is no other $ limit, like monthly, and there is no limit to the number of transfers, as long as they are within the $ limits.
Avoid This Bank
I would give this bank a minus 3 if possible. While the rates offered are competitive, the price you pay is the lack of any customer service and ineptitude from the operations department. My account is locked even after I've sent the requested documents twice. It's been three days. I have to access my savings account to pay bills. But they really could care less. "Just wait" is all I keep being told.
Data as of Q4 2024
Learn why bank health mattersHealth Grade Components
| Overall | |
|---|---|
| FDIC Certificate # | 32551 |
| Year Established | 1987 |
| Employees | 1003 |
| Primary Regulator | OCC |
| Profit Margin | |
|---|---|
| Return on Assets - YTD | 0.49% |
| Return on Equity - YTD | 4.38% |
| Annual Interest Income | $902.7MM |
| Assets and Liabilities | ||
|---|---|---|
| Assets | Q4 2024vs Q4 2023 | $10.47B$8.61B |
| Loans | Q4 2024vs Q4 2023 | $5.55B$5.2B |
| Deposits | Q4 2024vs Q4 2023 | $9.12B$7.43B |
| Equity Capital | Q4 2024vs Q4 2023 | $1.17B$1.02B |
| Loan Loss Allowance | Q4 2024vs Q4 2023 | $236.7MM$310.4MM |
| Unbacked Noncurrent Loans | Q4 2024vs Q4 2023 | $44.6MM$35MM |
| Real Estate Owned | Q4 2024vs Q4 2023 | $0$0 |