LendingClub High-Yield Savings Account Review [2023]: Digital Banking Made More Human?

The best online banks offer competitive interest rates, fewer fees, and the convenience of mobile banking. And as the online banking space becomes more competitive, online banks are stepping up their game to deliver a worthwhile banking experience. This includes providing everything from good customer service and high rates to a valuable lineup of products.

As you look for the best place to grow your savings, LendingClub — previously known as Radius Bank — is hoping its product depth, fintech capabilities, and personalized attention will put a stop to your search.

Can you end your hunt for the best savings account right now — or should you keep looking? We’re here to help you make this decision in this LendingClub savings account review.

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LendingClub High-Yield Savings account basics

What we like about the LendingClub High-Yield Savings account

• Fees are minimal: The LendingClub high-yield savings account — previously known as Radius high-yield savings account — isn’t fee-less, but it doesn’t charge you any of the fees that usually come with a traditional savings account, such as monthly service, minimum balance, and ATM fees. In fact, LendingClub will give you ATM fee reimbursements if you use an ATM from another bank and do get charged a fee. 
• Integrated financial dashboard: LendingClub customers will be able to take control of their money through personal financial management tools. You’ll be able to create a budget, track your spending, develop plans to pay off debt, and always know your net worth. These are just some of the features you’ll find with this tool.

Other products related to the LendingClub savings account

• Interest-bearing checking accounts: Savings accounts are great and all, but they’re meant for parking cash, not for spending. Luckily, with a LendingClub Rewards Checking account, you don’t have to sacrifice earning interest to be able to use your money for everyday spending. Pair your savings account with a LendingClub interest-bearing checking account, you’ll enjoy additional perks like free ATMs, ATM fee rebates, no monthly fees, free checks, and the opportunity to earn cash back rewards on your debit card purchases.
• Get your paycheck early: LendingClub customers who set up direct deposit to their LendingClub checking account are automatically eligible to receive their money up to two days early. How’s that possible? Employers often submit the money for payroll days before your actual payday. LendingClub makes it available to you as soon as your employer does this.
• Certificates of Deposit (CDs): LendingClub customers can receive a very competitive APY (annual percentage yield) with the LendingClub High-Yield Savings account, but that isn't the only type of deposit account that LendingClub offers. In fact, they offer even higher CD rates. Putting your money in a LendingClub one-year CD will earn you an APY of 4.00% (as of Mar. 23, 2023). If you need to save for something a few years down the road, this might be a great option.
• Credit cards: LendingClub offers a handful of different credit cards that come with essential features and valuable perks tailored to your needs. Whether it’s a rewards credit card or one with an extended introductory APR (annual percentage rate) offer, LendingClub has you covered.
• Personal loans: As a LendingClub customer, you’ll have access to fixed, low-rate personal loans to fit your financial needs. You can borrow up to $40,000 at a competitive fixed rate.
• Marketplace: LendingClub has partnered with a variety of financial products to give you more options to “spend, save and protect your money.” It calls this the LendingClub Marketplace, and companies like Billshark, Ladder, and Lemonade are all on board. Whether you’re looking for a service to help lower your monthly bills to service providers or a simpler approach to life, renters, or homeowners insurance, the LendingClub Marketplace might be a good place to start.

What LendingClub could improve

• High minimum balance to earn highest APY: The APY you’ll receive with your LendingClub High-Yield Savings account depends on your balance, and this might be limiting to some people. 
• Overdraft and extended overdraft fees: LendingClub charges $25 for each overdraft or returned item. In addition, after the fifth calendar day your account remains in the negative, you’ll be charged $5 a day. Some other online banks don’t charge these fees at all. That said, if you like what LendingClub has to offer, these fees can be easily avoided by always practicing proper money management.

Compare earnings with LendingClub vs. a traditional savings account

Assuming you maintain a minimum balance of at least $2,500, LendingClub offers customers a very competitive interest rate on its high-yield savings account. The earning potential of a typical brick-and-mortar bank savings account doesn’t even come close — LendingClub is the clear winner.

Take the following scenario as an example. We’ll assume a $5,000 initial deposit, and you can see how LendingClub quickly pulls ahead.

While the LendingClub High-Yield Savings account earns you a great APY on balances of at least $2,500, this isn’t the only interest-bearing account the LendingClub bank offers. Its checking account also earns interest. So if you're looking to open both a checking and savings account, LendingClub could be a good fit for you. 

How to open a LendingClub High-Yield Savings account

If you want to open a savings account with LendingClub, it can be done in just a few minutes, and the process is as simple and straightforward as you could imagine. You’ll need to provide the usual personal information, such as your name, email, phone number, date of birth, Social Security number, and password to set up your account. You can also choose whether you want to make it a joint account (which isn’t a feature all online banks offer, by the way).

To fund your new account, you can use a debit card or transfer from an existing bank account; this only takes a few minutes to complete. Once your bank is linked up, go ahead and submit your application. You’re now a LendingClub bank customer.

How to withdraw money from a LendingClub High-Yield Savings account

LendingClub customers receive a free ATM card with their savings account, giving you more flexibility in how you access your money. You can also make free internal and external transfers with online and mobile banking. While transfers are free, you’re limited to six withdrawals each month, per federal regulations.

Other LendingClub High-Yield Savings account fees

LendingClub customer service

The best way to reach LendingClub's customer service is either online or by phone. Support hours for phone and live chat on lendingclub.com are Monday through Friday from 8:30 a.m. to 1:00 a.m. ET and Saturday through Sunday from 8:00 a.m. to 8:00 p.m ET.

You can also reach out to LendingClub through social media Monday through Friday from 8:30 a.m. to 8:00 p.m. ET.

FAQs about LendingClub

Final thoughts

If you prefer to bank online and can take advantage of the high interest rates, then opening an online savings account with LendingClub might be beneficial. With no monthly maintenance fees or minimum balance fees, convenient features like mobile check deposit and free bill pay, and a variety of other account options, a LendingClub savings account could be one of the best places to park your cash. 

If LendingClub doesn't seem like a good fit for your needs, then be sure to check out our list of the best savings accounts and also our list of the best banks.

Disclaimer: All rates and fees are accurate as of Jan. 9, 2023.

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Author Details

Matt Miczulski Matt Miczulski is a personal finance writer specializing in financial news, budget travel, banking, and debt. His interest in personal finance took off after eliminating $30,000 in debt in just over a year, and his goal is to help others learn how to get ahead with better money management strategies. A lover of history, Matt hopes to use his passion for storytelling to shine a new light on how people think about money. His work has also been featured on MoneyDoneRight and Recruiter.com.

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