You may recall LendingClub, founded in 2006, as the very first peer-to-peer lending platform to register their securities with the SEC.
By December of 2015, the San Francisco based start-up had claimed to facilitate $15.98 billion in loans on its platform.
In 2016 however, the company was hit hard with problems and scandals. The company was failing to bring on investors, had scandals involving some of their loans, and the board of directors were concerned with LendingClub’s CEO.
Fast forward to 2020, LendingClub decides to drop its peer-to-peer lending platform entirely and acquires Radius Bank to commence more traditional banking operations.
Today, they offer a number of competitive, FDIC-insured, high yield deposit accounts with both fixed and variable rates.
For the purpose of this review we will focus on Lending Club’s high yield savings account which offers a competitive yield of 4.25% APY.
LendingClub High Yield Savings Account Rate + Details
To open LendingClub’s high yield savings account you’ll need a minimum deposit of $100 to complete the account opening process. Once your account is open there are no monthly balance requirements or maintenance fees of any kind.
To put this yield into perspective, the current national average for a money market account and a savings account sit at just 0.57% and 0.39% APY, respectively, according to FDIC data, with the top yields from online banks and credit unions now topping 5.00% APY following the latest rate hike by the Fed.
Opening and Funding Your Account
You’ll need to be a US citizen or legal resident and 18 years old or older to obtain this account.
To get started, you’ll want to have the following information readily available:
- Social Security Number
- Current Physical Address
- Email Address
- Bank account number and routing number – or – debit card from the institution you wish to transfer funds from
Please make sure this account has the $100 you’ll need to open your new LendingClub high yield savings account.
If you have all of this information handy, the account should only take 3 minutes to open online.
📍 Please Note: LendingClub may hold your funds for up to 5 business days during their “review process.” Also, although LendingClub does not pull your credit score if you have a hold on your credit for security purposes, LendingClub will manually review your application.
Managing Your Account
The easiest way to manage your LendingClub account is through their IOS or Android app or simply with their online banking.
Funds can be added to your account after account opening through LendingClub’s mobile deposit. This is available on both their banking apps or by initiating ACH transfers or wire transfer through their online banking portal.
LendingClub imposes daily transaction limits for their high yield savings account that is determined by how long you’ve been a customer of theirs.
See the matrix below for more details.
|Eligibility||New Client||90 days + $10k Balance||120 days + $50k Balance|
|Incoming ACH||$10k daily||$150k daily||$250k daily|
|Outgoing ACH||$10k daily||$50k daily||$250k daily|
|Mobile Check Deposit||$50k daily||$150k daily||$250k daily|
|ATM Card||$500 daily||$1k daily||$2k daily|
LendingClub ATM Card
LendingClub gives you the option to obtain a free ATM card that is tied to your high yield savings account.
They are a member of two of the largest nationwide surcharge-free ATM networks: MoneyPass® and SUMSM.
You can use your ATM card at any of their 37,000 locations nationwide without incurring an ATM surcharge fee.