In this extensive analysis, we’ll explore LendingClub Bank (formerly Radius Bank), an emerging online banking institution. We’ll assess its strengths, potential drawbacks, and how it competes in the financial landscape.
Finance Devil Score
Before we delve into the details, it’s essential to note that LendingClub Bank boasts an impressive Finance Devil Score of 4.6 out of 5, signifying its overall quality. Let’s take a closer look at what contributes to this remarkable rating.
LendingClub Bank’s Competitive Edge
Competitive Yields
LendingClub Bank stands out with its high-yield savings account, offering faster growth for your money compared to other options.
No Monthly Fees
A standout feature is the absence of monthly fees on many of its products, allowing you to save more of your hard-earned money.
Early Paycheck Access
Checking account holders with direct deposit can enjoy early paycheck access, adding convenience and flexibility to their financial management.
Rewards Checking Benefits
LendingClub Bank’s Rewards Checking account is an excellent choice due to its lack of NSF or overdraft fees, plus a 1 percent cashback, making it a rewarding option for everyday banking.
Aspects to Consider
While LendingClub Bank excels in many areas, there are a few aspects that potential customers should keep in mind:
CD Minimum Deposit
Minimum Deposit Challenge: To open a CD with LendingClub Bank, you’ll need at least $2,500, which might not be suitable for everyone, despite the attractive returns.
Lack of Physical Branches
Online-Only Operation: LendingClub Bank operates exclusively online, which may not suit those who prefer in-person banking services.
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A Closer Look at LendingClub Bank’s Offerings
LendingClub Bank offers a range of financial products to cater to different needs. Let’s delve into the details:
High-Yield Savings
Rating: 5 stars out of 5
Finance Devil Score: 5.0
Minimum Deposit: $100
LendingClub Bank’s High-Yield Savings account is accessible to many with its low minimum deposit requirement of $100. There are no monthly account fees, and you can earn a competitive APY on all balance tiers.
Certificates of Deposit (CDs)
Rating: 4.2 stars out of 5
Finance Devil Score: 4.2
APY Range: 4.00% – 5.50%
Minimum Deposit: $2,500
Terms: 6 months – 5 years
LendingClub Bank offers a range of CDs with competitive interest rates. While the minimum deposit is relatively high, these CDs provide an opportunity to grow your savings securely.
Checking Accounts
Rating: 4.6 stars out of 5
Finance Devil Score: 4.6
LendingClub Bank’s checking accounts are popular for their high ratings. The bank’s policy of no monthly fees and early paycheck access makes them an attractive option for many.
A Virtually Fee-Free Experience
LendingClub Bank keeps fees to a minimum, which is a significant advantage for customers. Here’s a quick overview of their fees:
- Overdraft Fee: None
- Non-sufficient Funds Fee: None
- Monthly Maintenance Fee: None (except for tailored checking accounts with average monthly balances less than $500)
- Out-of-network ATM Fee: None
- Excessive Transaction Fee: None (some withdrawal limits may apply)
- Stop Payment Fee: $25
Unveiling LendingClub Bank’s Transformation
LendingClub Bank, previously Radius Bank, was acquired by LendingClub Corp. in February 2021 and rebranded as LendingClub Bank in July 2021.
A Seamless Banking Experience
LendingClub Bank offers a seamless banking experience through its mobile app. Customers can deposit checks, access budgeting tools, pay bills, and more. Users can also link external accounts, create budgets, and determine their net worth. While the iOS mobile app is highly-rated, the Android app has received mixed reviews.
Customer service is available via phone and live chat from 8:30 a.m. to midnight Eastern time on weekdays and from 8 a.m. to 8 p.m. on weekends.
LendingClub Bank vs. the Competition
LendingClub Bank is often compared to similar online-only banks like SoFi. Here’s how it stacks up against one of its competitors:
LendingClub vs. SoFi
Both LendingClub and SoFi are online-only banks known for charging minimal fees and offering high yields on deposit accounts. However, SoFi does not offer certificates of deposits. If you prioritize having a variety of deposit account options under one roof, LendingClub might be the better choice.
To Recap
LendingClub Bank presents a compelling array of financial products with several advantages for customers seeking online banking solutions. However, it’s essential to consider the bank’s history of legal issues and the absence of physical branches when determining if it aligns with your financial needs and preferences.
Addressing Frequently Asked Question
Who is LendingClub Bank best for?
LendingClub Bank is an excellent choice for customers comfortable with online-only banking. It provides easy access to money through a vast ATM network and offers high yields on most deposit products, making it a top pick for savers.
Is LendingClub safe?
Yes, LendingClub is a safe banking choice. As a member of the FDIC, it insures up to $250,000 per account type, per depositor, ensuring the security of your funds.
What did LendingClub get in trouble for?
In 2021, LendingClub faced a legal issue and paid an $18 million settlement to the Federal Trade Commission. The FTC alleged that LendingClub had misled consumers about hidden fees and loan application approvals. It’s essential to be aware of this history when considering the bank’s services.
How does LendingClub Bank compare with traditional banks?
LendingClub Bank’s online-only model means it has lower overhead costs, allowing it to offer competitive yields and minimal fees. However, it lacks physical branches, which can be a drawback for those who prefer in-person banking.
Can I open an account with LendingClub Bank if I’m not in the United States?
LendingClub Bank accounts are available to U.S. residents. International customers may need to explore other banking options.
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