LendingClub Bank Review: Strong Checking and Savings Accounts

GOBankingRates Score

Lending Club
4.9
SCORE
GOBankingRates Best Banks 2023 scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks.
Quick Take: LendingClub Bank provides checking, savings and CD accounts, as well as loans, for consumers and businesses. Customers will need to be comfortable with transacting all of their business online as LendingClub only has one physical financial center located in Boston. However, it is designed to be an online and full-spectrum financial technology marketplace and is the first public neobank of its kind.
  • Checking Accounts
    4.9
  • Saving Accounts
    4.9
  • CD Accounts
    4.8
  • Banking Experience
    4.8
How did we calculate this?

Pros

  • Rewards account pays interest
  • Free checking and savings accounts
  • High rates for savings accounts and CDs

Cons

  • Only one physical branch
  • High fees
  • Mobile app is not highly rated

LendingClub Overview

LendingClub Bank is an online bank established in 2007 that provides banking services with some very attractive options. In fact, GOBankingRates has named it as a finalist in several of its Best Bank categories. It is among the Best Online Banks and Best Neobanks for 2023.

Key Features

Here is a closer look at some of the features that make LendingClub Bank stand out.

LendingClub Checking Account

LendingClub’s Rewards Checking account charges no monthly fee and has just a $25 minimum deposit. It comes with a debit card that earns you an unlimited 1% cash back on online transactions and on transactions that you sign for in person. There are no ATM fees, and customers get rebates on the fees charged by other banks. When you sign up for direct deposit you can get your paycheck up to two days early. LendingClub will credit your direct deposit to your Rewards Checking account as soon as your employer submits their payroll files to the Federal Reserve Bank.

The Rewards Checking account also pays interest, which is becoming more common for online banks. Account holders earn APY when their balance is $2,500 to $99,999.99. If it’s more than that, they earn APY.

GOBankingRates has rated LendingClub’s Rewards Checking account among the Best Checking Accounts for 2023.

LendingClub Savings Account

LendingClub’s savings account pays interest from the first dollar. Its High-Yield Savings account pays . There are no monthly service fees, and you can open an account with a minimum of $100. An ATM card is available at no charge.

GOBankingRates has rated LendingClub Bank’s High-Yield Savings account among the Best Online and Neobank Savings Accounts of 2023.

LendingClub CD Accounts

LendingClub Bank offers CDs for terms ranging from six months to five years. The minimum deposit to open a CD and earn interest is $2,500.

Rates range and go up to for a five-year term.                 

LendingClub Banking Experience

The combination of features in LendingClub’s Rewards Checking account, including early direct deposit, cash back on debit card purchases and interest, make it a winner. Its name might lead you to believe that LendingClub Bank focuses on loans, but it offers much more than that. Its checking, savings and CD accounts are robust, with features that many consumers expect, and others that are refreshing to find.

Add in the fact that it rebates ATM fees charged by other banks, and that there are no monthly account maintenance fees, and you have a solid account that will help you make the most of your money.

Mobile App

Users have given the LendingClub app 4.4 out of 5 stars on the App Store and 3.8 out of 5 stars on Google Play. For an online bank, the reviews from users haven’t always been positive, but it does seem to have shown improvement over the last year. 

Customer Service

LendingClub provides phone service to customers when you call 1-800-242-0272 between the hours of 8:30 a.m. to 12:00 a.m. EST during the week and 8:00 a.m. to 8:00 p.m. EST on weekends.

You can also submit an email request or use the Live Chat function on its website.

LendingClub Bank vs. Competition

Both online and brick-and-mortar banks have some of the features offered by LendingClub Bank, but few banks have all of them. You might find an online bank that rebates ATM fees, but it may not provide cash back on your debit card purchases. Likewise, some banks will not have monthly maintenance fees, but they may not pay interest on their checking accounts.

LendingClub vs. Ally

Ally Bank has an interest-bearing checking account that pays up to APY depending on your balance. LendingClub customers earn a maximum of APY. And Ally also offers investment products.

What Ally does not provide that LendingClub does is cash back on debit card purchases.

LendingClub vs. Wells Fargo

If you want to consider a brick-and-mortar bank, Wells Fargo has over 4,000 branches and 12,000 ATMs nationwide. It also has a highly-rated mobile app. Apple users give it 4.8 out of 5 stars and Android users give it 4.7 out of 5 stars.

What you won’t find is a checking account that pays interest or cash back on your debit card purchases.

Final Take

LendingClub is ideal for anyone comfortable with online-only banking. You’ll need to get used to working with an app and debit card for withdrawals and payments, but the benefits are worthwhile. GOBankingRates has ranked LendingClub among the Best Online Banks and Best Neobanks of 2023.

LendingClub Bank’s checking account offers a robust set of features and can help you make the best use of your money. For the best combination of features for a checking account, LendingClub Bank should be on your list of banks to consider.

LendingClub Bank FAQ

Here are the answers to some of the most frequently asked questions about LendingClub Bank.
  • Is LendingClub a bank?
    • Yes, LendingClub is an online and neobank. It provides checking, savings and CD accounts, as well as loans, for consumers and businesses.
  • Is LendingClub a legitimate bank?
    • Yes, LendingClub is not only FDIC-insured but GOBankingRates has named it among the Best Online Banks and Best Neobanks of 2023.
  • Is LendingClub bank FDIC-insured?
    • Yes, LendingClub Bank is FDIC-insured and all accounts are covered up to the standard $250,000.
  • Is LendingClub Bank shutting down?
    • No, LendingClub as a whole is not shutting down but in 2020, LendingClub acquired Radius Bank and announced that it would be shutting down just its peer-to-peer lending platform.

Cynthia Bowman contributed to the reporting for this article.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Dec. 6, 2022.

To determine rankings for the Best Online Banks, GOBankingRates looked at the following factors across exclusively online banks: (1) total assets as sourced from the FDIC; (2) monthly checking fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); (3) savings APY; (4) 1-year CD APY; (5) customer service options and mobile products offered (24/7 customer service, live chat with a human, mobile app and remote check deposit); (6) Bauer rating (out of 5 stars); (7) products/services offered (auto loans, mortgage loans, credit cards, investment services and insurance); and (8) the average mobile app rating between the Android and Apple app stores. Factors (1) and (2) were weighted 0.5 times, and factors (3) and (7) were weighted 2 times. For all savings and checking account data, only the basic accounts/products offered at each institution were analyzed. 

To determine rankings for the Best Neobanks, GOBankingRates looked at the following factors: (1) monthly checking fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); (2) savings APY; (3) products/services offered (credit cards and investment services); (4) the average mobile app rating between the Android and Apple app stores; and (5) number of extra benefits and perks unique to neobanks. All factors were then scored and combined, with the lowest score being best. Factor (1) was weighted 0.5 times, and factors (2) and (5) were weighted 2 times. 

To determine rankings for the Best Online Bank and Neobank Savings Accounts, GOBankingRates looked at the following factors from all online banks and neobanks: (1) total assets as sourced from the FDIC; (2) minimum deposit to open an account; (3) monthly savings fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); (4) minimum balance needed in account to earn APY; (5) savings APY; and (6) the average mobile app rating between the Android and Apple app stores. All factors were then scored and combined, with the lowest score being best. Factor (1) was weighted 0.5 times, factor (4) was weighed 1.5 times and factor (5) was weighted 3 times.  

To determine rankings for the Best Checking Accounts, GOBankingRates looked at the following factors from all banks (excluding credit unions): (1) total assets as sourced from the FDIC; (2) number of branch locations as sourced from the FDIC; (3) minimum deposit to open an account; (4) monthly checking fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); (5) APY on the checking account; (6) overdraft fee amount; and (7) the average mobile app rating between the Android and Apple app stores. All factors were then scored and combined, with the lowest score being best. Factors (1), (2 and (5) were weighted 0.5 times, and factor (4) was weighted 1.5 times. 

Lending Club: Rates from 5.99% to 35.96%* APR. Best APR is available to borrowers with excellent credit.

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About the Author

Caitlyn Moorhead has written content for a variety of businesses and publications. After graduating from Central Michigan University cum laude, she moved to New York City where she wrote columns, articles and plays for several years before relocating to Austin, Texas in the fall of 2020.
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