The fintech company that was a leader in peer-to-peer lending has become an FDIC-insured bank called LendingClub Bank N.A. (LendingClub) after its acquisition of Massachusetts-based Radius Bank. LendingClub ended its peer-to-peer Notes program, and it’s now promoting high-yield savings accounts. LendingClub appears intent on being a competitive online bank. It recently made a significant rate upgrade to the old Radius Bank High-Yield Savings account, bringing the account back to a competitive level. LendingClub raised the High-Yield Savings rate to 0.60% APY on balances =$2.5k; balances <$2.5k earn 0.05% APY. The fee-free High-Yield Savings account can be opened with a $100 minimum deposit.
|OTHER TIERS: 0.05% → Up to $2.5k|
If you look at the drop-down box listed under “Details,” it looks like the High-Yield Savings is a new account, as of July 2020. Unfortunately, the software that tracks rates considers accounts that are part of an acquisition to be new accounts offered by the acquiring financial institution. In other words, the rate history goes back only as far as the acquisition date.
Between 2015-2018, I wrote four blog posts about the Radius High-Yield Savings account. The last blog post was in September 2018 when it offered rates of 1.96% APY ($25k+), 1.50% APY ($2.5k+), and 0.05% APY ($10+). By the end of 2018, the top tier rate had been increased to 2.05% APY, a rate that remained in effect for about a year. In December 2019, the top tier rate dropped to 1.65% APY, but the High-Yield Savings account was removed from the bi-weekly Liquid in March 2020, after the rate had plummeted to 0.25% APY.
The High Yield Savings FAQs page contains some helpful information, including,
How do I fund my account and when are funds available?
To make your initial deposit, you can transfer money from your account at another financial institution using your account and routing number or your debit card. Please ensure that you have sufficient funds available to be transferred. All funds transferred into your account during the first 30 days of your account being opened are held for 5 days for your security, with the exception of direct deposit from your employer which is available immediately upon deposit.
Where can I deposit my cash?
You are able to deposit cash at any MoneyPass Deposit Taking ATMs and NYCE Shared Deposit ATMs and we rebate all ATM fees at the end of the month.
A free ATM card is available and can be used at fee-free ATMs across the country.
LendingClub is a member of two nationwide surcharge-free ATM networks: MoneyPass® and SUMSM. You can use your debit and ATM cards at any of the more than 20,000 ATMs without incurring an ATM surcharge.
What’s no longer included in the FAQs or the Truth-in-Savings disclosure is the answer to that all-important question, “Can I make External Transfers online?” In a Live Chat, CSR confirmed that the following is still in effect:
Yes. As a Radius Bank customer enrolled in Online Banking, you can make free internal and external transfers. This includes transferring money between your Radius Bank accounts, transferring money to other Radius Bank Online Banking account holders, transferring money from your Radius Bank account to accounts at other financial institutions, and transferring money from accounts at other financial institutions into your Radius Bank account. The standard daily limit for online external transfers is $5,000 incoming and $5,000 outgoing.
I had hoped the daily limits had been increased since my last blog post, but they have remained unchanged. CSR stated that ACH transfers initiated from an outside bank are allowed, “as long as you are the owner of both accounts.” When ACH limits are low, it’s always good to have another way to move funds in and out that’s free.
CSR also stated that two beneficiaries (equal shares) can be named with Social Security number, date of birth and full address required.
Headquartered in Boston, LendingClub Bank offers its services and product line to all U.S. citizens and resident aliens, 18 years or older, who have a valid Social Security number or Individual Tax Identification number.
Our Seaport Financial Center is now open to the public without an appointment needed.
LendingClub Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 2.56% (excellent) based on June 30, 2021 data. In the past year, LendingClub has increased its total non-brokered deposits by $978.48 million, an excellent annual growth rate of 92.21%. Please refer to our financial overview of LendingClub (FDIC Certificate # 32551) for more details.
LendingClub Bank is currently the 17th largest bank headquartered in Massachusetts and the 323rd largest bank in the country, with assets in excess of $3.3 billion and more than 70,000 customer accounts. Established in 1987 as the First Trade Union Savings Bank, FSB, the Bank has rebranded three times: First Trade Union Bank (1996), Radius Bank (2014), and LendingClub Bank, N.A. (2021) following the 2020 acquisition of Radius Bank. As stated on LendingClub’s About Us page,
On February 1, 2021, LendingClub Bank, N.A., closed the acquisition of Radius Bancorp and its wholly-owned subsidiary, Radius Bank, becoming the only full-spectrum financial technology (fintech) marketplace bank and the first public U.S. neobank. As of July 14, 2021, Radius officially updated its brand name to LendingClub.
How the High-Yield Savings Compares
When compared to the nationally available Savings Accounts tracked by DepositAccounts.com that do not have a low balance cap or large minimum balance requirement, LendingClub Bank’s High-Yield Savings APY currently ranks third.
|Interest Rate||Account Name||Bank/Credit Union|
|0.65% APY||Affirm Savings (no min)||Affirm|
|0.61% APY||High-Yield Savings ($2.5k min)||Ivy Bank|
|0.60% APY||High-Yield Savings ($2.5k min)||LendingClub Bank|
The above information and rates are accurate as of 9/17/2021.
To search for the best Savings account rates, either nationwide or state specific, please refer to our Savings Accounts Rates Table page.