November 22, 2024

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LendingClub Bank review (2024) #CashNews.co

LendingClub Bank review (2024) #CashNews.co

Cash News

Summary: Founded in 2007, LendingClub is an online bank that has since grown to serve more than 4.8 million members. LendingClub offers banking products and services for individual customers and businesses, including checking accounts, savings accounts, certificates of deposit (CDs), loans, and more.

Here’s a look at the products offered by LendingClub:

  • Rewards checking: With LendingClub’s rewards checking account, customers can earn unlimited 1% cash back on qualified purchases. There are no monthly maintenance or overdraft fees associated with this account and no minimum balance or transaction requirements. Account balances between $2,500 and $99,999.99 earn 0.10% APY and balances of $100,000 and up earn 0.15% APY.

  • LevelUp savings: LendingClub’s high-yield savings account offers an impressive 5.30% APY — if you deposit a minimum of $250 per month in your account. If you fail to meet this requirement, you’ll still earn a higher-than-average 4.80% APY. There’s no minimum opening deposit or minimum balance needed to keep your account open.

  • CDs: LendingClub offers CDs with terms ranging from six months to five years. The minimum amount needed to open a CD is $2,500. Interest earnings can be deposited into your CD or sent to your LendingClub checking or savings account monthly.

  • Personal loans: LendingClub offers personal loans of up to $40,000 with fixed rates, fixed monthly payments, and no prepayment fees. APRs range from 8.98% to 35.99%. Personal loans are available with terms of two to five years.

  • Business loans: LendingClub partners with the nonprofit Accion Opportunity Fund to connect customers with affordable small business loans from $5,000-$250,000.

  • Auto refinancing: LendingClub customers can apply for auto loan refinancing on the LendingClub website. To qualify, your vehicle must be for personal use only, 10 years old or newer, under 120,000 miles, and your existing auto loan must be open for at least one month, have a balance between $4,000-$55,000, and at least 24 months of payments remaining.

  • Patient solutions: LendingClub offers healthcare financing for customers who need help paying for costs associated with dentistry, fertility, hair restoration treatments, and bariatric procedures.

  • Business solutions: LendingClub also offers business products, including a tailored checking account, cash management solutions, small business lending and financing, a business high-yield savings account, and more.

  • Commercial banking: LendingClub offers a range of banking services and solutions for larger institutions, including operating accounts, savings solutions, online services, payables and receivables solutions, fraud control, and lending and financing services.

See our ranking of the 10 best online banks for 2024>>

LendingClub does not charge fees for its accounts, with the exception of its early withdrawal penalty for accessing funds in a CD before it reaches maturity.

Read more: What are bank fees, and how do I avoid them?

Here are some of the major pros and cons to consider before becoming a LendingClub customer:

Pros:

  • Rewards checking account: LendingClub offers a rewards checking account with a competitive cash-back rate of 1%, as well as 0.10%-0.15% APY on the account balance

  • ATM fee rebates: If you make frequent trips to the ATM, LendingClub offers unlimited ATM fee rebates for any fees charged by other banks or ATM owners.

  • No monthly maintenance or overdraft fees: LendingClub does not charge overdraft fees or monthly maintenance fees.

Cons:

  • No physical branches: LendingClub is an online bank and does not have any physical branches for customers to visit.

  • $2,500 needed to earn interest on checking account balance: To earn interest on checking account balances, LendingClub customers need to have a balance of at least $2,500.

  • $2,500 needed to open a CD: The minimum opening deposit to open a LendingClub CD is $2,500, which may be on the higher end for those just getting started on their saving journey.

For help with checking accounts, savings accounts, and CDs, customer support is available Monday through Saturday from 8 a.m. to 8 p.m. ET by calling 800-242-0272.

Personal loan customers can contact customer support at 888-596-3157, Monday through Friday from 5 a.m. to 5 p.m. PT.

Business loan customer service representatives can be reached via email at [email protected] or via telephone at 855-846-0153, Monday through Friday from 7 a.m. to 5 p.m. PT.

Customers with an auto refinance loan can reach a service representative via email at [email protected] or via telephone at 888-845-0010, Monday through Friday from 6 a.m. to 4 p.m. PT.

For easier online banking, LendingClub offers a mobile app on the App Store and Google Play where customers can monitor account balances, make payments on loans, check their credit scores, and more. The app has a rating of 4.3 stars on the App Store and 3.3 stars on Google Play.

LendingClub has committed to reducing its carbon footprint in a few key ways. This includes continuing to operate online rather than through brick-and-mortar locations, advocating for the use of sustainable or re-usable products in its office spaces, adopting a hybrid work model to reduce its carbon footprint, and lending to individual consumers and small businesses rather than corporations that may negatively impact the environment.

LendingClub has also worked to impact the communities it serves by promoting financial health and empowerment among consumers that are underserved by traditional banks. LendingClub has committed to capping its APRs to help consumers who are saddled with high-interest debt as well as cutting out ATM fees, monthly maintenance fees, overdraft fees, and more to help consumers save more.

LendingClub has also supported disparate impact regulation in order to prevent algorithmic discrimination in lending to communities of color and its small business program with the Accion Opportunity Fund has seen over 50% of its loans go to minority-owned businesses.

Read more: What is sustainable banking?

Yes, LendingClub is an FDIC-insured institution.

LendingClub’s routing number is 211075086.

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