LendingClub Business Banking Review
While known for financing, LendingClub offers a variety of business banking services, including a high-yield savings account and competitive checking rewards.
LendingClub At A Glance
- LendingClub has great reward perks including 1.5% APY and 1% cash back for business checking and 3.6% for business savings
- LendingClub has unlimited transactions and large transaction limits
- LendingClub has little to no monthly fees
- High APY for both savings & checking
- Cash back rewards
- Monthly fees can be waived
- No ACH fees
- Large transaction limits
- Minimum balance required to waive monthly fees
- Expensive wire transfers
Table of Contents
- Services Offered By LendingClub
- LendingClub Bank Rewards & Perks
- LendingClub Bank Fees
- LendingClub Bank Eligibility Requirements
- LendingClub Bank Features
- LendingClub Bank Customer Service
- LendingClub Bank Reviews
- Is LendingClub Banking Safe?
- How Does LendingClub Compare To Other Banking Options?
- The Bottom Line: Is LendingClub Bank Worth It?
Services Offered By LendingClub
- SBA 7(a) Loans
- SBA 504 Loans
LendingClub Bank Overview
Known for its personal and business loans, LendingClub is an established fintech company that offers banking services as well. LendingClub boasts some of the best business banking rewards on the market, with a high-yield savings account option and a checking account that offers both APY and cashback.
LendingClub also offers both cash deposits and checks, so businesses can get all of the perks of online banking with the features of traditional banking. LendingClub has minimal fees and ATM reimbursements. All of these perks earn LendingClub a spot on our list of top online business bank accounts.
The main downsides of LendingClub are that it doesn’t offer as many lending options as some other online banks (which is surprising given the company’s history) and wire transfers are quite expensive with LendingClub. We’ll give a full breakdown of the pros, cons, and fees below.
Best Suited For
- Small businesses that need large transaction limits
- Small businesses that want strong checking rewards
- Businesses that want a bank with SBA lending options
- High-yield savings account
- Businesses that need checks and cash deposits with their online bank
What To Watch Out For
- If your business uses wire transfers often, LendingClub might not be a good fit as its wire transfer fees are higher than most other online banks
- Cash deposits are only available with MoneyPass ATMs, so you may want to double-check that one of the 40,000 MoneyPass ATMs is near you before creating your account
- If your account has a $0 balance for three months or more, LendingClub may close your account
LendingClub Bank Rewards & Perks
LendingClub offers impressive perks for an online bank. LendingClub’s checking rewards include up to 1.50% APY and 1% cash back on eligible debit card purchases. LendingClub’s high-yield savings account offers 3.60% APY with no minimums for earning interest.
Unlike many other banks offering high-yield savings, there’s no minimum balance required for APY earnings on savings accounts.
Interest is compounded daily and cash-back rewards are calculated at the end of every month. You’ll need to maintain an average account balance of $500 to be eligible for checking cash-back rewards.
LendingClub Bank Fees
|Found Bank Fees
|Monthly Maintenance Fee
|$0 – $19.99/month
|Minimum Opening Deposit
|Wire Transfer Fee
|0% (1.75% if instant deposit is needed)
|Cash Deposit Fee
|Foreign Transaction Fee
|Excessive Transactions Fee
|Stop Payment Fee
Usually, we downgrade a company that requires a minimum balance to waive monthly fees; however, the good outweighs the bad when it comes to LendingClub. LendingClub Tailored Checking has a low monthly fee of $10 that can be waived with a $500 account balance which is relatively easy to maintain (LendingClub High-Yield Business Savings accounts have no minimum balance requirements).
LendingClub has no overdraft, ACH, or ATM fees, and even reimburses all ATM fees which is a nice touch. The company is also very transparent with its fee schedule.
The real reason LendingClub gets a less-than-stellar rating for fees is because the company’s wire transfer charges are quite expensive compared to other online banks with fees from $18 all the way to $40 for a single wire.
LendingClub also charges a 0.90% charge for cross-border international transactions.
LendingClub offers unlimited transactions and does not charge excessive transaction fees.
LendingClub has high transaction limits compared to most other online banks. Below is a table of the basic transaction limits; however, Preferred, Elite, and Reserve level customers can get access to much higher limits (like $250,000 for ACH or $50,000-$250 for mobile deposits).
|Domestic Incoming Wire Transfer
|Domestic Outgoing Wire Transfer
|International Incoming Wire Transfer
|International Outgoing Wire Transfer
|$2,000/week or $4,000/month
Transaction Processing Times
|1-2 days for first $225
|Up to business 5 days
|Mobile Check Deposits
|Up to 5 business days
LendingClub offers same-day processing times for almost every type of transaction so long as you meet the cut-off time. Cut-off times vary by transaction type.
LendingClub Bank Eligibility Requirements
To open a LendingClub business banking account you’ll need:
- A $100 minimum opening deposit
- To be a legal US resident
- A valid SSN and/or EIN
How To Open A LendingClub Bank Account
Opening a LendingClub is as easy as compiling basic bank documents and then following the prompts on LendingClub’s website for a step-by-step account setup.
If you opt for the LendingClub Tailored Checking account, you can add your debit card to your phone’s mobile wallet right away or opt to expedite your physical cards with a $35 one-time fee.
LendingClub Bank Features
LendingClub offers decent online banking perks including built-in invoicing, reporting, and bill pay. While you won’t find quite as many bookkeeping features as a bank like Lili or Found, you’ll still have access to a good number of finance management features.
You can also integrate with popular accounting software like QuickBooks and Quicken.
- Digital wallet & physical debit cards
- Unlimited ACH
- Unlimited transactions
- Mobile deposits
- Cash deposits
- FDIC insurance up to $250k
- Mobile banking
- Bill pay
- Digital invoices
- Electronic statements
The shining feature of LendingClub’s high-yield savings account is that there is no minimum balance for APY earnings. There aren’t too many additional features.
- Free ATM card
- Free unlimited ACH transfers
- Mobile banking
- Electronic statements
Unlike LendingClub’s checking account which requires a $500 minimum to be eligible for cashback and to avoid monthly fees, LendingClub’s savings account has no minimum balance requirements.
LendingClub Bank Customer Service
LendingClub has a smaller offering of support options than we like to see. There are no support tickets and no email support. However, customers report having positive experiences with the LendingClub support team and generally found support representatives helpful and informative.
LendingClub Bank Reviews
Because LendingClub is a lender that also offers personal banking and business banking, finding customer reviews specific to business banking isn’t always easy. Customer review sites lump all LendingClub products into their ratings so you have to sift through individual reviews to find banking-specific information.
As a whole, LendingClub receives 4.6/5 stars on TrustPilot based on over 5,000 reviews and 4.1/5 stars on Consumer Affairs based on 375 reviews.
The company is accredited by the BBB and receives an A+ rating, but you will find a current alert for the business that says “BBB reports on known government actions involving business’ marketplace conduct.” While this warning sounds scary and is serious, it is not necessarily LendingClub’s fault. There is a popular scam where scammers pose as LendingClub, which is why this warning appears.
Most LendingClub reviews are specific to LendingClub’s loan services, so there aren’t enough banking reviews to put a consistent picture together. However, here are the most common praise of LendingClub as a whole:
- Helpful support
- Good loan services
- Easy to use
Many customers like LendingClub so much that they have used the company three or four times for loans. The main complaint about LendingClub was that sometimes customers felt their loan terms weren’t favorable enough.
Is LendingClub Banking Safe?
LendingClub is up-front about its security and practices industry-standard security measures to keep banking data safe, including 256-bit data encryption. LendingClub supports up to $250,000 in FDIC insurance as well.
How Does LendingClub Compare To Other Banking Options?
LendingClub’s biggest competitor is Grasshopper Bank. Grasshopper Bank is one of the only other online business banking options that offers both APY and cashback earnings on their checking account. Grasshopper has a slightly higher APY at 2.25% and more lending options for businesses. However, LendingClub offers a savings account option, which Grasshopper Bank doesn’t have, and LendingClub is more upfront about its security.
Read our full Grasshopper Bank review for more on how these two business bank options compare.
The Bottom Line: Is LendingClub Bank Worth It?
If you’re looking for an online bank with strong rewards, LendingClub should be in the running. LendingClub offers competitive rewards checking features with both APY and cashback earning potential, and while the high-yield savings rate is a bit lower than those of competitors like Live Oak Bank or Mercury, there’s no minimum or maximum balance limit for APY earnings.
Pair great rewards with relatively few fees and you’ve got a great banking product — unless you need to receive or send a large number of wire transfers. LendingClub’s wire transfer fees are expensive compared to other online banks, so if your business relies heavily on that transaction type, you’d be better off looking at LendingClub alternatives.
For some business owners, the APy rate may matter more than the earning maximum, in which case other high-yield business savings accounts may be a better fit.
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