LendingClub High Yield Savings Account Review 2023
It’s always a great idea to put money away for a rainy day, and although a regular savings account can help you do that, high-yield savings accounts are among the best options to really make your money work for you.
If you feel comfortable doing your banking online, LendingClub offers a high-yield savings account with extremely competitive rates since it doesn’t have the same overhead as a traditional brick-and-mortar bank.
Continue reading to learn about what the LendingClub high-yield savings account has to offer to determine if it’s the right choice for you.
LendingClub High Yield Savings Account At-a-Glance
Compare to Other Savings Accounts
There are a lot of options for savings accounts out there, so you’ll want to know how LendingClub stacks up against other savings accounts.
The following is a comparison of LendingClub’s high yield savings account versus those offered by other financial institutions.
Sallie Mae High Yield Savings Account
You may recognize the name Sallie Mae from the student loan market — maybe you even have a loan there yourself — but you may not know that the company offers personal banking options as well.
Sallie Mae’s high yield savings account is very similar to LendingClub’s in that it provides a competitive interest rate, and Sallie Mae also does not charge monthly maintenance fees or have a minimum balance requirement.
However, unlike LendingClub, you will be charged for using your ATM card if you make more than six withdrawals in a month.
American Express® High Yield Savings Account
American Express‘s high yield savings account offers an interest rate that is well above the national average and there are no monthly fees, like LendingClub.
However, American Express does not require a minimum opening balance, whereas LendingClub customers must have a $100 initial deposit to open an account.
Synchrony High Yield Savings Account
Synchrony offers a high yield savings account that provides a healthy interest rate and allows you to access your money through an ATM card. In addition, there are no monthly maintenance fees on the account, which is a benefit LendingClub also provides.
However, Synchrony does charge a $25 fee for outgoing wire transfers, while LendingClub does not.
Who Is a LendingClub High Yield Savings Account For?
LendingClub’s high yield savings account is for consumers who want to maximize their savings and enjoy an interest rate that is significantly higher than what you will generally find at traditional banks.
Consider opening an account if you:
- Don’t need to do any in-person transactions at a branch
- Want ATM access
- Don’t want to pay any monthly service fees
- Want to take advantage of integrated personal finance management tools that help you keep track of your debts, budget, and monthly spending
When you open a high yield savings account with LendingClub, you can rest assured that your money is safe because it’s FDIC-insured up to $250,000.
In addition, the company uses 256-bit encryption, so you know your banking information is always protected from the peering eyes of hackers.
Top Features of the LendingClub High Yield Savings Account
If you’ve been researching different savings account options and LendingClub has not been on your radar, you’ll want to know what features will be available to you.
Below are some key benefits that LendingClub customers enjoy.
Savings accounts offered by online banks have some of the most competitive interest rates you can find, and LendingClub’s high yield savings account is no exception.
If you won’t need to make any transactions in person, this gives you the opportunity to get more bang for your buck than you will with a traditional brick-and-mortar bank.
Customers are not charged monthly maintenance fees on their account. In addition, you will not be charged for getting an ATM card for your account, unless you want it expedited, nor will you be charged for the transactions you make with it.
You can easily access information about your account 24/7, as well as schedule payments and make deposits, through LendingClub’s mobile app. Also, you can manage your account on the bank’s website.
In addition to LendingClub’s high yield savings account, there’s also a rewards checking account that allows you to earn cash back on qualified purchases. Also, you can open a certificate of deposit at LendingClub to further take advantage of its competitive rates.
If you want to make internal and external fund transfers, you can do so conveniently, and at no cost, through the bank’s website and mobile app.
No Minimum Balance
LendingClub does not require a minimum balance and provides interest on your account no matter how much you have in the bank.
Personal Finance Tools
As you grow your money in your high yield savings account, LendingClub helps you effectively manage it.
The bank offers integrated personal finance management tools to keep track of your debts and spending, prepare a monthly budget, and calculate your net worth.
In addition, you can analyze trends in your finances, so you understand when you may be going over your budget.
Just as you expect from a traditional bank, when you open an account with LendingClub, your money is covered by FDIC insurance. You can rest assured that your funds are safe and protected up to the $250,000 limit.
How to Get Started
To open an account, you’ll need to provide personal information such as your name, date of birth, address, phone number, email address, and Social Security number.
Then, you will set up a username and password. In addition, you’ll have the opportunity to open your account as a joint account if you wish.
To make your initial deposit, which is a minimum of $100, you can transfer the funds from your current bank account or use your debit card. After the funds are available, your account will be opened — a process that takes only three minutes to complete.
Rating the Features
When deciding on whether or not to open any kind of bank account, it’s helpful to have as much information as possible to make an informed choice.
The following is some important information about the features of LendingClub’s high yield savings account to help you decide if it is right for you.
Signing up for an account, withdrawals, deposits, and other banking transactions are done online through LendingClub’s website or through its mobile app. Online and mobile banking is available 24 hours a day, seven days a week.
If you need to reach customer service, there are several ways to do so, such as online chat, phone, or email. Users who are comfortable with doing things online or through their phones will have the best experience with LendingClub.
You don’t have to worry about monthly fees eating into your balance because LendingClub charges no monthly service, overdraft, or ATM fees.
However, there are some miscellaneous fees you should be aware of. LendingClub charges $35 if you need an expedited ATM card, $20 to send a wire transfer, and a $25 per hour research fee.
LendingClub seems to be serious about keeping up with other banks offering above-average savings account APYs by having some of the best rates currently being offered.
Like other high yield savings accounts, you can expect to receive highly competitive rates when you open an account at LendingClub.
Also, you receive the bank’s outstanding rates for your entire balance, so you don’t have to worry about saving a certain amount to make your money work for you.
In addition to its high yield savings account, consumers are able to get their other banking needs met at LendingClub.
If you want more savings options that yield high interest rates, you can get a certificate of deposit that matures in six months to five years.
In addition, LendingClub also offers personal checking accounts that provide cash back on qualified purchases made on a debit card.
If you need help with your account, no problem. LendingClub has customer support available by phone, online chat, and email.
While LendingClub doesn’t have any branches, you can conveniently access information about your account and make transactions through the bank’s website and mobile app, and take out money via ATM.
Pros and Cons of the LendingClub High Yield Savings Account
While a higher interest rate may be a selling point for many consumers, some people want more of a personal touch with their banking and are willing to earn a lower interest rate in order to get it.
LendingClub may not be a good choice for you if you prefer to do some of your banking in person or even want to speak to someone as you open your account initially.
However, if you’re comfortable doing banking online, the perks are definitely worth it, though you may raise an eyebrow at the $100 opening deposit that LendingClub requires.
Frequently Asked Questions
Yes. Just as with a brick-and-mortar bank, the money you put into your LendingClub high yield savings account is FDIC-insured.
The process to open an account is extremely fast, so you can have your application processed in about three minutes.
Yes, LendingClub has a mobile app that allows you to conveniently manage your money.
High yield savings accounts are one of the best options that banks offer to help you meet your financial goals by getting the most out of your savings.
LendingClub customers can also easily manage their money and keep track of their finances. If online banking is comfortable for you, you can get a lot out of opening a high yield savings account at LendingClub.