Online banking has substantially increased in popularity, with more people opting to open and manage accounts virtually. This has created an influx of online banks.
LendingClub Bank is one solution for customers searching for online bank accounts. It offers traditional accounts and loans.
But is this platform the ideal choice for your financial needs? Our LendingClub Bank review can help you decide if the company is the right option for you.
Summary
LendingClub Bank is an online bank that specializes in rewards checking accounts, high-yield savings accounts and personal loans. They offer competitive features, interest rates and fee schedules.
Pros
- Attractive banking accounts
- Competitive features for banking accounts
- Competitive interest rates on loans
Cons
- Origination fees on personal loans
- Limited account options
What is LendingClub Bank?
LendingClub Bank was developed after LendingClub, a peer-to-peer lending platform, acquired Radius Bank.
During this acquisition, the company eliminated peer-to-peer loans and replaced them with more traditional lending options.
Today, LendingClub Bank offers personal loans, auto refinancing, checking accounts, savings accounts, CDs and more. The company boasts that it has helped over four million members reach their financial goals.
LendingClub Bank is committed to:
- Reinventing banking
- Doing what’s right
- Delivering world-class experiences
- Leveling the financial playing field
This company is a member-FDIC bank as well as an Equal Housing Lender.
How Does LendingClub Bank Work?
LendingClub Bank works similarly to the best online banks and offers a variety of consumer products.
In order to open a bank account with LendingClub Bank, you need to be a U.S. resident or U.S. permanent resident. You’ll also need a Social Security number, a current mailing address and an email address.
Depending on your financial needs, LendingClub lets you open any of the following accounts.
Checking Accounts
LendingClub Bank has one personal checking account called the Rewards Checking account.
Here are the basic features of the Rewards Checking account:
- Minimum opening deposit: $25
- Minimum balance requirement going forward: $0
- Monthly maintenance fee: $0
- ATM fees: $0
This checking account from LendingClub Bank has other attractive features as well.
Cash Back
When you open a Rewards Checking account, you’ll get cash back of 1% on all purchases if you meet LendingClub Bank’s qualifications.
In order to be eligible for cash bank on checking purchases, you do need to make signature-based purchases online or in-store. This means that you need to select “credit” rather than “debit” when you are at the register.
Also, your checking account needs to either have a minimum of $2,500 in the account or $2,500 in eligible direct deposits per month.
Earn Interest
You have the option to have your Rewards Checking account earn interest. In order to earn interest on your balance, you must have at least $2,500 in the account.
Balances above $100,000 will earn a higher interest rate. Potential interest rates as of this writing are 0.10% on balances of $2,500 to $100,000 and 0.15% on balances of $100,000 or more.
Early Direct Deposit
As a Rewards Checking account owner, you also have the ability to get your direct deposit paycheck up to two days early.
However, this feature is dependent on the payor’s ability to offer early direct deposit.
Reimbursement of ATM Fees
Another nice feature of the Rewards Checking account is that it will automatically reimburse you for any ATM fees charged by other ATM owners.
You can use any ATM in the world and do it fee-free or with fee reimbursement benefits.
Savings Accounts
LendingClub Bank offers two savings vehicles for members, including a high-yield savings account and Certificates of Deposit (CDs).
High-Yield Savings
LendingClub Bank’s High Yield Savings account offers some helpful features.
These include:
- Minimum opening deposit: $0
- Minimum balance requirement after opening: $0
- Monthly service fees: $0
- Free ATM card
You can also deposit cash into your accounts by using a MoneyPass deposit-taking ATM or an NYCE Shared Deposit ATM.
As of this writing, LendingClub Bank’s High Yield savings account pays 1.52% on all accounts, regardless of balance.
This interest rate is subject to change at any time. In addition, the bank’s High-Yield Savings account has tiered interest rates that may differ depending on the balance in the account and the current interest rate rules.
CDs
LendingClub Bank CDs have tiered interest rates based on the length of the CD and a minimum balance requirement of $2,500.
Here are the current interest rates based on the length of the CD:
| Duration | Rate |
| One year | 2.01% |
| 18 months | 2.25% |
| Two years | 2.5% |
| Three years | 2.75% |
| Five years | 2.95% |
It takes less than three minutes to apply to open a CD with LendingClub Bank. These CDs are FDIC-insured up to the maximum allowed amount of $250,000.
Loans
LendingClub Bank offers a small selection of loans that can help consumers with a wide variety of needs.
Personal Loans
You can get personal loans of up to $40,000 with LendingClub Bank. If you have more than one loan with LendingClub Bank, you could be eligible to borrow up to $50,000.
You can use your LendingClub Bank personal loans for:
- Debt consolidation
- Balance transfers to lower your interest rate
- Home improvement
- Credit card consolidation
As of this writing, interest rates on LendingClub Bank personal loans range from 6.34% to 35.89% depending on your credit history and other factors.
In addition, you can choose between two loan terms, including three years and five years. LendingClub Bank offers both joint and individual loans.
Once you’re approved for a loan through LendingClub Bank, you’ll typically have your funds within 24 hours. Plus, if you’re consolidating debt, the bank will pay off your creditors for you or simply send the funds to your other bank.
It’s important to note that you will pay an origination fee of between 2% and 6% of the loan amount when you get a personal loan through LendingClub Bank.
This origination fee is taken directly from your loan proceeds, so you’ll want to consider that as you choose your loan amount.
Auto Refinancing
LendingClub Bank also offers auto refinancing loans and claims that you can save an average of $89 by choosing them for your refinancing needs.
The terms LendingClub Bank requires for auto loan refinancing include:
- Cars for personal use only
- Vehicle 10 years old or less
- Less than 120,000 miles on the vehicle
- A current auto loan balance of between $4,000 and $55,000
- At least one payment made on your existing auto loan
- 24 months or more of payments remaining on your current auto loan
Rates, terms and fees on your auto loan refinancing will vary and be discussed during the loan application process.
How Much Does LendingClub Cost?
The costs for LendingClub Bank’s products vary based on the account you choose.
Here’s a breakdown of LendingClub Bank’s costs:
| Product | Interest Charged | Fees |
| Rewards Checking | n/a | $0 monthly |
| High Yield Savings | n/a | $0 monthly |
| Certificates of Deposit | n/a | $0 |
| Personal Loans | 6.34%-35.89% | 2%-6% origination fee |
| Auto Loans | 2.99%-24.99% | Late fees/title transfer fees |
Be sure to review LendingClub Bank’s terms and conditions for the products you’re interested in to learn more about other fees that may apply.
Is LendingClub Worth It?
In terms of costs for the regular banking accounts, yes. LendingClub Bank is worth it since they charge no monthly maintenance fees. However, you’ll want to make sure you can’t get better rewards or rates from a different bank.
When it comes to loans, only you can decide if LendingClub Bank is worth it for you. Factors to make that determination include your individual fees, interest rates and more.
LendingClub Bank does offer competitive products in comparison with other banking institutions, including the world’s largest banks.
Key Features
The following features may help you decide if LendingClub Bank is ideal for you.
Advantage Program
All clients with LendingClub Bank are automatically enrolled in the Advantage Program.
This program comes with the following benefits:
- Unlimited 1% cash bank when using your Rewards debit card
- Increased deposit and transfer limits
- Marketplace partnership offers
- LendingClub Store access
And more. See the LendingClub Bank website for details about the benefits that come along with the Advantage Program.
Online and Mobile Banking
LendingClub Bank offers both online and mobile banking for clients. You can get the app for both Apple iOS and Android devices on Google Play or the Apple App Store.
There is no charge to download or to use LendingClub Bank’s mobile apps.
Finance Tools
LendingClub Bank also offers a host of financial tools that can help you organize your finances while you bank.
Budgets, Spending and Trends
Your Rewards Checking account comes with benefits such as the ability to create a budget within your account. You can also track your spending to see where your money is going each month.
Additionally, you can view personalized trend charts to see if you’re getting closer to or further from your financial goals.
Net Worth and Debts
Another benefit of LendingClub Bank’s Rewards checking account is that you can track both your debts and your net worth.
You can see up to a year’s worth of history in these areas as well.
External Account Linking
When you link your external accounts, you can view all of your account balances in one place.
This saves you time since you don’t have to log in and out of different banks to get your current account balances.
Mobile Wallets and Payments
You can also sync your LendingClub Bank debit card with Apple Pay, Google Pay and Samsung Pay. This makes it easier to pay bills, send money and receive money.
The process of setting up mobile wallets is simple and allows you to shop securely as well as privately.
LendingClub Bank Reviews
Before signing up for any financial product, it can be helpful to know what other people think about the service.
Here’s how LendingClub Bank stacks up on the different ratings websites:
Here are a few excerpts from online reviews shared by customers:
“Super easy process. From the time I applied until the money was in my bank was less than one week.” –Tanya W.
“The loan process was easy but I wasn’t happy when I only received $4,888 instead of the $5,200 I asked for and am being charged for. To me that’s a bit of a scam. So I won’t be recommending any one of my family and friends to you folks.” –Laureen D.
“I am very happy with how fast I was approved for the loan and at the speed the funds were deposited into my account. I was able to consolidate my debt to have just one payment a month, which was exactly what I was looking for.” –Mayra C.
“Horrible service. Declined my business checking account application three times. I’ve been in business for 15 years using brick and mortar banks.” –Mike M.
Alternatives To LendingClub
If you think a LendingClub Bank alternative would be better for your financial needs, here are the top competitors you can consider.
Ally Bank
Ally Bank is an online financial institution that offers checking accounts, savings accounts, CDs, loans and investing accounts.
The interest checking account pays 0.25% interest (as of this writing), has no minimum balance requirement and can be opened with any dollar amount.
Ally’s online savings account features buckets that help you organize your savings by goals.
You can also use the account’s RoundUp feature to grow your savings faster by rounding up purchases made from your checking account with your debit card.
If you are looking for an online bank with more robust offerings, Ally might be a better option for you.
Axos Bank
Axos Bank has three checking accounts to choose from, including Essential Checking, Rewards Checking and Cash Back Checking.
The Essential Checking has a minimum opening deposit of $0 and no minimum balance requirements. The other checking accounts have a $50 minimum opening deposit and no requirements in terms of a minimum balance.
There is a First Checking account available for teens as well.
Furthermore, Axos offers a High Yield Savings account and a Money Market account with rates that are competitive compared to other online banks.
Capital One
Capital One has checking accounts, savings accounts, credit cards and auto loans.
The bank’s 360 Checking account offers no monthly fees, no overdraft fees and no account minimums. Plus, its 360 Performance Savings account offers one of the highest rates in the industry (currently 1.20%), no fees and no minimum balance.
Additionally, you can visit the Capital One website for information about accounts for kids if you need bank accounts for your children.
FAQ
If you still have questions about LendingClub Bank, these answers might be helpful.
LendingClub offers phone service Monday through Saturday. They also have an extensive online help center to ensure you have adequate support.
Yes. LendingClub Bank uses 256-bit encryption and SSL/TLS.
The company takes bank-level precautions to protect your privacy and keep your information secure. Plus, its deposit products are FDIC-insured.
Yes. The company offers CDs, small banking loans, auto loans and personal loans.
You can also get business banking accounts if you need solutions for your company.
Summary
LendingClub has great checking and savings accounts that offer competitive features like cash back and a high interest rate.
However, when it comes to personal loans, the company’s offerings do have additional fees. Be sure you read the terms before committing to any personal loan.
Overall, if you are looking for an online banking option for your basic financial needs, LendingClub Bank is worth checking out.
