LendingClub Bank Review: Top Online Bank With High-Interest CDs
Written by
Caitlyn Moorhead
Edited by
Melanie Grafil
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
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GOBankingRates Score
Lending Club
-
Checking Accounts
4.8
-
Saving Accounts
4.9
-
CD Accounts
5.0
-
Banking Experience
4.8
Pros
- Rewards checking account pays interest
- Free checking and savings accounts
- High rates for savings accounts and CDs
- Qualifying purchases earn 1% cash back
Cons
- Only one physical branch
- Mobile app has average ratings
LendingClub Bank Overview
LendingClub, an online bank established in 2007, provides banking services with some very attractive options. In fact, GOBankingRates has named it as a winner in two of this year’s Best Banks categories: Best Online Banks and Best CDs for 2024.
LendingClub Bank Review
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 qualified purchases. 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.
The Rewards Checking account also pays interest, which is becoming more common for online banks. Account holders earn APY when their average monthly balance is $2,500 to $99,999.99. If it’s more than that, they earn APY.
LendingClub Savings Account
LendingClub’s High-Yield Savings account pays APY on your total balance. 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, and there is no fee for internal or external transfers.
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 vary, but securing an APY as high as is possible, depending on your CD’s term.
Thanks!
GOBankingRates selected LendingClub as one of the Best CD Accounts for 2024.
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 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 4.3 out of 5 stars on the App Store and 3.3 out of 5 stars on Google Play. Many of the complaints concern log-in problems and app crashes.
Customer Service
LendingClub provides phone service to customers when you call 1-800-242-0272 between the hours of 8:00 a.m. to 8:00 p.m. EST, Monday through Saturday.
Comparable Bank Options
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 refunds 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, compared to the up to APY that LendingClub customers can earn. Ally also offers investment products, mortgages and auto loans.
Unlike LendingClub, Ally does not provide cash back on debit card purchases. The earnings from the cash-back feature can quickly add up, and according to LendingClub, the average customer earns $20 per month in benefits.
LendingClub vs. Wells Fargo
If you want to consider a brick-and-mortar bank, Wells Fargo has branches in 36 states and Washington, D.C., and 11,000 ATMs nationwide. It also has a highly-rated mobile app. Apple and Android users give it 4.8 out of 5 stars.
What you won’t find at Wells Fargo is a checking account that pays cash back on your debit card purchases or a checking account that earns interest on balances as low as $2,500. Wells Fargo does offer two interest-bearing checking accounts, but you’ll need to keep a high minimum balance to avoid costly monthly fees.
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 CDs of 2024.
LendingClub Bank’s checking account offers robust features and can help you make the most of your money. Its CDs provide high interest rates with low minimum deposit requirements. For the best combination of features available for your personal banking needs, 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 Bank shutting down?
- No, LendingClub Bank continues to offer a range of banking and borrowing services. However, in 2020, LendingClub shut down its peer-to-peer lending service, known as Notes. The shutdown occurred in tandem with its acquisition of Radius Bank.
- Is it safe to use LendingClub?
- Yes. LendingClub Bank is FDIC-insured, so your checking, savings and CDs are protected up to $250,000.
- What are the downsides of LendingClub?
- Since LendingClub Bank offers online banking solutions, you won't find any local bank branches. If in-person banking options are important to you, LendingClub might not be the right fit for your needs. However, clients can benefit from LendingClub's interest-bearing checking and savings accounts, and it is one of GOBankingRate's top picks for CDs in 2024.
- Who is the parent company of LendingClub?
- LendingClub Corporation is the parent company of LendingClub Bank. LendingClub Corporation is a public company traded on the New York Stock Exchange (NYSE).
- How many customers does LendingClub have?
- Currently, LendingClub boasts more than 4 million members who turn to the company for their banking and borrowing needs.
Compare to Other Institutions
- Varo Bank Review: Neobank With No Hidden Fees
- Bask Bank Review: High Interest Rates or Airline Miles
- UFB Best Savings Account Review
- Citizens Access Review: Online Banking You Can Trust
- CIT Bank Review: An Online Savings Account That Really Pays
Cynthia Bowman and Virginia Anderson 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 Jan. 11, 2024.
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) Bauer rating (out of 5 stars); (6) products/services offered (auto loans, mortgage loans, credit cards, investment services and insurance); and (7) the average mobile app rating between the Google Play (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 CD Accounts, GOBankingRates looked at the following factors from all banks (excluding neobanks): (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) 12-month CD APY; (5) 60-month CD APY; and (6) the average mobile app rating between the Google Play (Android) and Apple app stores. All factors were then scored and combined, with the lowest score being the best. Factors (1) and (2) were weighted 0.5 times, factor (3) was weighted 2 times, and factors (4) and (5) were weighted 4 times.
Lending Club: Rates from 5.99% to 35.96%* APR. Best APR is available to borrowers with excellent credit.
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