If you’re looking for a reliable online banking option with competitive yields and minimal fees, LendingClub Bank should be on your radar. Formerly known as Radius Bank, LendingClub Bank is an FDIC-insured financial institution that offers a range of personal banking services. From checking accounts to high-yield savings accounts, certificates of deposit (CDs), personal loans, and auto loans, LendingClub Bank has got you covered. Let’s take a closer look at what this bank has to offer.
Review of LendingClub Bank products
Rewards Checking: A Checking Account That Works for You
LendingClub Bank’s Rewards Checking account offers a unique combination of earning interest on balances and getting cash back on purchases. With no monthly maintenance fees, minimum balance requirements, or overdraft fees, this account provides a hassle-free banking experience. Additionally, you’ll enjoy unlimited ATM fee reimbursements each month and the option to receive direct deposits up to two days early.
Pros:
- Earn unlimited cash back
- No overdraft fees or maintenance fees
- Unlimited ATM fee reimbursement
Cons:
- Low APY earned on balances
- No account option for minors
High-Yield Savings Accounts (HYSA): Maximizing Your Savings
LendingClub Bank’s high-yield savings accounts offer competitive interest rates and zero monthly maintenance fees. With a minimum deposit requirement of $100 (no minimum balance requirement thereafter), access to your savings is made easy with a free ATM card. Whether you need to withdraw or deposit cash, LendingClub Bank has your back.
Pros:
- Competitive interest rates
- No monthly maintenance fees
- Free ATM card
Cons:
- $100 minimum deposit requirement
- No sub-accounts for specific savings goals
Why we recommend LendingClub Bank high yield savings: With competitive interest rates, no monthly maintenance fees, and easy ATM access, LendingClub Bank ensures that your savings are working for you.
Certificate of Deposit (CD): Secure Your Money with Guaranteed Returns
LendingClub Bank offers a variety of CDs with terms ranging from six months to five years. Enjoy competitive rates, with the highest rates offered for the shorter-term CDs. While a $2,500 minimum deposit is required, you can maximize your returns with a maximum deposit of $250,000. Keep in mind that early withdrawal penalties may apply.
Pros:
- Multiple CD terms to choose from
- Competitive CD rates
- Guaranteed rate of return
Cons:
- High minimum deposit requirement
- Automatic renewal unless specified otherwise
Why we recommend LendingClub Bank CDs: With competitive rates and high maximum deposits, you can secure your savings and enjoy peace of mind with FDIC-insured returns.
Personal Loans: Borrow with Confidence
LendingClub Bank offers unsecured personal loans of up to $40,000 to eligible borrowers. As one of the best personal loan lenders, LendingClub Bank provides competitive fixed rates and flexible terms ranging from three to five years. Once approved, you can have the loan funds sent directly to your bank account or paid to your creditors if you’re consolidating debt. Best of all, there are no prepayment penalties if you decide to pay off your loan early.
Pros:
- Generous loan limits
- Customized loan options
- Direct payment to creditors
- No prepayment penalty
- Apply with a co-borrower
Cons:
- Origination fee applies
- Maximum loan APR is high
Why we recommend LendingClub Bank personal loans: Whether it’s for a major purchase or debt consolidation, LendingClub Bank offers the flexibility and convenience you need with fast funding and attractive loan terms.
Auto Loans: Drive with Confidence
If you’re looking to refinance your auto loan and lower your interest rate and monthly payment, LendingClub Bank has got you covered. Their auto loan refinancing option comes with no origination fees or prepayment penalties. Plus, you can check your rates online without affecting your credit scores. With competitive rates and flexible terms, LendingClub Bank makes auto loan refinancing a breeze.
Pros:
- Low refinance rates
- No origination fees or prepayment penalties
- Rate quotes available without impacting credit scores
- Flexible loan terms
Cons:
- Not available in all states
- No purchase loans
Why we recommend LendingClub auto loans: Whether you want to lower your monthly payments or get a better interest rate, LendingClub Bank offers competitive rates, minimal fees, and a quick application process.
Review of overall features
Fees: Keeping Your Costs Low
Overdraft fees
LendingClub Bank sets itself apart from other banks by eliminating overdraft fees for its customers. Say goodbye to those hefty charges when you don’t have enough money in your account to cover transactions.
Non-sufficient funds fees
LendingClub Bank also does not charge non-sufficient funds (NSF) fees. You won’t have to worry about being penalized for transactions that can’t go through due to insufficient funds.
Monthly maintenance fees
LendingClub Bank’s high-yield savings accounts come with no monthly maintenance fees. This customer-friendly approach is consistent with the best online banks that prioritize fee transparency.
Wire transfer fees
While LendingClub Bank does charge fees for wire transfers, incoming transfers are fee-free. For outgoing domestic wire transfers, you’ll pay $20, and for outgoing international wire transfers, the fee is $40.
CD early withdrawal penalty
To discourage premature withdrawals, LendingClub Bank imposes early withdrawal penalties on CDs. The penalty is equal to the amount of simple interest earned on the withdrawn amount, ensuring that you’re protected while still having the flexibility to withdraw interest monthly.
Customer Experience: Simplicity and Convenience
Support
LendingClub Bank provides customer support via phone at 1-800-242-0272 and live chat. Their helpful representatives are available Monday through Friday from 8:30 a.m. to 12:00 a.m. ET, as well as Saturday and Sunday from 8:00 a.m. to 8:00 p.m. ET.
Accessibility
Managing your LendingClub Bank accounts is a breeze with their user-friendly online platform and mobile app. You can also take advantage of over 37,000 MoneyPass and SUM® ATMs nationwide for surcharge-free deposits, withdrawals, and other transactions.
UI/technology
The LendingClub website and mobile banking app are designed with simplicity in mind. You can easily view your account details, schedule transfers, download statements, pay bills, and even make personal payments to friends and family.
Security and data protection
LendingClub Bank prioritizes the security of customer data by utilizing Secure Socket Layer (SSL) encryption. Additionally, you can set up alerts to keep you informed about any account activity, such as new login attempts, password changes, or banking transactions. Rest assured that LendingClub does not sell its customers’ personal information.
History and Reputation: A Closer Look
LendingClub Bank was established in 2021 after acquiring Radius Bancorp and its digital subsidiary. With its roots dating back to 2007, LendingClub has grown to become a leader in digital marketplace lending. In terms of reputation, LendingClub settled charges from the Federal Trade Commission regarding hidden fees for its loan products. However, it has not reported any data breaches and received a satisfactory score in J.D. Power’s Consumer Lending Satisfaction Study.
Who is LendingClub Bank for?
LendingClub Bank is an excellent choice for individuals who value competitive rates and minimal fees. Their Rewards Checking account, with its cashback and interest-earning capabilities, may appeal to those looking for a holistic checking experience. While their CDs offer guaranteed returns, it’s important to note the minimum deposit requirement. Overall, LendingClub Bank is suitable for savers who want their money to work harder for them.
Is LendingClub Bank FDIC-insured?
Yes, LendingClub Bank is FDIC-insured. Your deposits are protected up to $250,000 per account owner, per qualifying account. Whether it’s a checking account, savings account, or CD account, you can trust that your money is secure.
World Presence
LendingClub Bank is headquartered in San Francisco and has full-service ATM locations in Boston. Additionally, customers can access their accounts at over 37,000 MoneyPass and SUM® ATM locations nationwide.
How does LendingClub Bank compare?
When it comes to high-yield savings accounts and CDs, LendingClub Bank offers competitive rates and fee-friendly options. However, for a more detailed comparison, we encourage you to explore our comprehensive tables on our Personal Finances Blog for a side-by-side evaluation of different banks’ offerings.
Frequently Asked Questions (FAQs)
Is LendingClub a real bank?
Yes, LendingClub is a legitimate bank that offers banking services and loans. With its acquisition of Radius Bank, LendingClub has solidified its position as a trusted financial institution.
Is LendingClub a good online bank?
LendingClub Bank is a top choice for individuals seeking competitive rates, minimal fees, and a seamless online banking experience. With a focus on customer satisfaction, LendingClub Bank stands out among its peers.
Is LendingClub shutting down?
Despite shutting down their peer-to-peer lending platform, LendingClub Bank continues to serve millions of customers with its banking and lending services. You can rely on LendingClub Bank for your personal banking needs.
Is it hard to get approved for a LendingClub loan?
Approval for a LendingClub loan depends on factors such as credit scores and income. Higher credit scores increase your chances of approval and may qualify you for the best loan rates.