LendingClub Bank review: Checking account with 1% cash back on unlimited purchases

LendingClub Bank has a high-yield savings account and rewards checking account. LendingClub; Alyssa Powell/Insider

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The bottom line:  LendingClub has a solid rewards checking account; it lets you earn 1% cash back on qualified debit card purchases if you have $2,500 in your account. It also has a high-yield savings account with a competitive interest rate. If you prefer in-person banking, though, LendingClub probably won't be the best choice for you.

Overall bank rating

Pros and cons

LendingClub High-Yield Savings Account

The LendingClub High-Yield Savings Account is an excellent option if you are looking for an account with no monthly service fees and that offers an ATM card.  You'll also earn a much higher interest rate than the average savings account.

LendingClub Rewards Checking Account

The LendingClub Rewards Checking Account is a well-rounded checking account. It has no monthly services fees and access to over 325,000 surcharge-free ATMs worldwide through NYCE, SUM, and MoneyPass ATM networks. You can also receive your paycheck 2 days early.

If you can maintain at least $2,500 in your account, you can earn 0.10% annual percentage yield (APY) and score 1% cash back on unlimited signatured-based purchases. If you want to earn the highest APY, you'll need to have an account balance of $100,000 or higher. 

LendingClub Certificate of Deposit

LendingClub CDs range from six months to five years. LendingClub offers competitive interest rates. However, if you're worried about the standard-to-high early withdrawal penalties, then you may want to open a CD elsewhere. 

How LendingClub works

LendingClub is a personal loan provider and online banking institution. LendingClub has one branch located in Boston, Massachusetts. Through NYCE, SUM, and MoneyPass ATM networks, you can have access to over 325,000 surcharge-free ATMs worldwide.

Customer service is available through FAQs, live chat, email, or phone. You can talk to a customer service representative or use live chat Monday through Friday from 8:30 a.m. to 12 a.m. ET, or Saturday through Sunday from 8 a.m. to 8 p.m. ET. 

The LendingClub mobile app has a 4.4 out of 5 rating on the Apple store and a 3.8 out of 5 rating on the Google Play store. 

LendingClub Bank is FDIC insured, so individual accounts are protected up to $250,000 and joint accounts are secured up to $500,000. 

LendingClub Bank trustworthiness and BBB rating

The Better Business Bureau provides ratings based on how businesses deal with customer complaints and issues. Something to keep in mind is that a good BBB rating won't guarantee that your interactions with the bank will be great.

LendingClub Corporation has an A rating from the BBB due to government action that was taken against the business. 

In July 2021, LendingClub Corporation paid $18 million in a settlement with the Federal Trade Commission when accused of deceptive lending practices that charged consumers hidden fees and told them they were approved for a loan even when they weren't.

Featured Deposit Accounts

LendingClub vs. Axos Bank

Choosing between LendingClub and Axos Bank may depend on which features you prioritize in a rewards checking account.

The LendingClub Rewards Checking Account allows you to earn 1% cash back on an unlimited number of signature-based purchases, but you'll need to maintain an account balance of $2,500 or more. 

In comparison, Axos Bank lets you earn up to $2,000 in cash back per month on signature-based debit card transactions, but you'll need to maintain an average daily balance of at least $1,500. Otherwise,  you'll get 0.50% in cash back for the month if your balance is below $1,500.

If you want a rewards account that offers a high interest or requires a lower minimum account balance, then Axos Bank will offer more of what you are looking for. 

Axos Bank may also be a better option if you're searching for a money market account. LendingClub Bank doesn't offer one. 

LendingClub vs. Quontic Bank

LendingClub and Quontic Bank have solid rewards checking accounts. LendingClub allows you to earn cash back on an unlimited amount of purchases if you keep at least $2,500 in your account.

Meanwhile, Quontic Bank lets you earn 1.50% cash back on up to $2,000 in debit card purchases per day. If you don't want to deal with maintaining a specific minimum balance to earn cash back, then you'll prefer Quontic Bank.

Quontic also might be an appealing choice if you looking for a CD with a low minimum opening deposit. You'll only need $500 to get a Quontic Bank CD.

Frequently asked questions