LendingClub Bank review: Checking account with 1% cash back on unlimited purchases

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The bottom line: If you’re looking for an online bank with a solid rewards checking account, then LendingClub High-Yield Savings Account may be right for you. The LendingClub Rewards Checking Account lets you earn 1% cash back on credit purchases if you have $2,500 in your account. However, if you want a variety of online CD options or a high APY on savings, other banks can offer stronger products.

Overall bank rating

FeatureInsider (rating out of 5)Savings4Checking4.25CD3.5Trustworthiness3.5Total3.75

Pros and cons

ProsConsChecking account earns interest and lets you get cash back on credit purchasesRange of CD term optionsATM card included with a savings accountCan receive paycheck up to two days early Need to reach certain qualifications to earn the highest APY for the savings and checking accountsNeed to have $2,500 in your checking account to get cash-back perkLimited CD term options if you want to apply online

Savings

LendingClub High-Yield Savings Account

The LendingClub High-Yield Savings Account is a good option if you are looking for an account with no monthly service fees and that comes with an ATM card. To get the most out of the account, you’ll need to maintain a balance of at least $25,000 — that way, you can earn the highest APY.

However, if your top priority is getting a high APY, other online banks can offer better rates. Also, you may not like that LendingClub compounds interest monthly instead of daily.

Checking

LendingClub Rewards Checking Account

The LendingClub Rewards Checking Account is the online bank’s most appealing account option. The account has no monthly services fees and access to over 325,000 surcharge-free ATMs worldwide through NYCE, SUM, and MoneyPass ATM networks. You can also receive your paycheck 2 days early.

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If you can maintain at least $2,500 in your account, you can earn 0.10% APY and score 1% cash back on unlimited purchases. If you want to earn the highest APY, you’ll need to have an account balance of $100,000 or higher.

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CD

LendingClub Certificate of Deposit

The LendingClub Certificate of Deposit comes in a variety of term options, from 3 months to 5 years. However, you can only apply for a 1-year CD, 18-month CD, or 3-year CD online. If you want to apply for another CD term, you’ll have to go to LendingClub’s branch in Boston, Massachusetts.

If you prefer a higher APY rate or aren’t fond of standard-to-high early withdrawal penalties, then you may want to open a CD elsewhere.

How LendingClub works

LendingClub is a personal loan provider that acquired online bank Radius Bank in February 2021. Radius Bank is now LendingClub. Current members will continue to have the same accounts and services. LendingClub also offers new accounts, which have similar features and offerings to Radius Bank’s accounts.

LendingClub has one branch located in Boston, Massachusetts. Through NYCE, SUM, and MoneyPass ATM networks, you can have access to over 325,000 surcharge-free ATMs worldwide.

Customer service is available through FAQs, live chat, email, or phone. You can talk to a customer service representative or use live chat Monday through Friday from 8:30 a.m. to 12:00 a.m. ET, or Saturday through Sunday from 8:00 a.m. to 8:00 p.m. ET.

The LendingClub mobile app has a 4.5 out of 5 rating on the Apple Store and a 3.8 out of 5 rating on the Google Play store.

LendingClub Bank is FDIC insured, so individual accounts are protected up to $250,000 and joint accounts are secured up to $500,000.

Is LendingClub Bank trustworthy?

To get a better understanding of how LendingClub Bank connects with customers, we’ve provided ratings and history from both Radius Bank and its parent company LendingClub Corporation.

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The Better Business Bureau provides ratings based on how businesses deal with customer complaints and issues. Something to keep in mind is that a good BBB rating won’t guarantee that your interactions with the bank will be great.

Radius Bank has an A rating from the BBB. Meanwhile, LendingClub Corporation has a B+ rating from the BBB due to government action that was taken against the business.

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In July 2021, LendingClub Corporation paid $18 million in a settlement with the Federal Trade Commission when accused of deceptive lending practices that charged consumers hidden fees and told them they were approved for a loan even when they weren’t.

In September 2018, LendingClub Corporation paid $2 million in a settlement with the Department of Justice when accused of violating the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.

LendingClub Corporation has also informed BBB that the company’s name is being used in an online scam. According to a note from the BBB, LendingClub says that there have been consumers who have applied for loans at other sites and contacted by representatives who claim they are LendingClub representatives. The consumers are told that they need to pay a certain fee and their loan will be approved, however, the loan is never received. If you are getting a loan from Lending Corporation, LendingClub says that you will not be asked to pay an upfront application fee.

If LendingClub Corporation’s recent public controversies don’t sit right with you, you may prefer to use another online bank.

Related Product Module: Deposit Accounts

How LendingClub compares to similar institutions

We compared LendingClub to two other online banks with reward checking accounts: Axos Bank and Quontic Bank.

LendingClub Logo

Axos Advisor logo

quontic bank logo

Cash back

1% on an unlimited amount

Cash back

Up to 1%, up to $2,000 in cash back per month

Cash back

1.50% on up to $2,000 per day

Minimum balance to earn cash back

$2,500

Minimum balance to earn cash back

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$1,500

Minimum balance to earn cash back

None

Checking APY

LendingClub Rewards Checking Account

Checking APY

Axos Bank Rewards Checking

Checking APY

Quontic Cash Rewards Checking Account

Savings APY

LendingClub High-Yield Savings Account

Savings APY

Axos High Yield Savings Account

Savings APY

Axos High Yield Savings Account

LendingClub Rewards Checking AccountAxos Bank Rewards CheckingQuontic Cash Rewards Checking Account

LendingClub vs Axos Bank

Choosing between LendingClub and Axos Bank will depend on which features you want to prioritize in a rewards checking account. If you want to earn cash back on an unlimited amount of purchases, then LendingClub’s account may be more appealing. Axos Bank only lets you earn $2,000 in cash back per month, but LendingClub doesn’t impose a limit.

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However, if you want a rewards account that offers a high APY or requires a lower minimum account balance, then Axos Bank will offer more of what you are looking for. Axos Bank only requires you to have an account balance of $1,000, and you can get up to 1.25% APY if you hit certain criteria.

LendingClub vs Quontic Bank

If you don’t want to deal with maintaining a specific minimum balance to earn cash back, then you’ll prefer Quontic Bank. LendingClub requires you to have an account balance of $2,500 in your account to get 1% cash back.

However, if you want a checking account that lets you earn interest, LendingClub may be a better fit. You can earn up to 0.15% APY — just make sure you have an account balance of at least $10.00 so you can earn some interest.

Related Content Module: More Savings Coverage

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By: Sophia Acevedo
Title: LendingClub Bank review: Checking account with 1% cash back on unlimited purchases
Sourced From: www.businessinsider.com/personal-finance/lendingclub-bank-review
Published Date: Fri, 13 Aug 2021 11:12:31 -0400

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