Lending Club isnâ€™t doing peer-to-peer lending anymore, but they are still doing banking. They purchased Radius Bank and have rebranded all of their products.
Today we will review their business checking account, the Lending Club Tailored Checking account for business owners.
Lending Club Bank’s Tailored Checking Account for small business earns just 0.1% interest plus 1% cash back on purchases made on the debit card. To qualify for both of these perks you must maintain an average balance of at least $5,000. Find better options at our list of free business checking accounts.
However, there are also no ATM fees, no monthly fees (as long as you maintain that $5k balance), and you can open an account for as little as $100.
A Review of Lending Club’s Tailored Checking Account
From Lending Club Bank comes the Tailored Checking Account (they acquired this product from Radius Bank, for those interested).
Itâ€™s a free, high-yield online business checking account that also earns cashback perks on debit card purchases.
Get Cash Back on Purchases
One of the coolest features is that Tailored Checking earns 1% cashback for online and signature-based transactions made with your debit card.
What does “signature-based transactions” mean? It means when you have the choice of “debit or credit” at checkout you must choose credit.
Credit transactions require a signature. If you choose “debit” you will be asked for a PIN rather than a signature, which means the cashback will not apply.
Besides making sure the transaction either online or signature-based you’ll also need to meet the following requirement:
- Keep an average balance of $5,000 in your Tailored Checking account.
Earn Interest on Your Balance
The Tailored Checking also earns 0.1% interest on the balance in your account.
This is a so-so feature in a checking account that will allow you to keep parts of your savings available in checking without forgoing interest.
Tailored Checking earns the APY depending on your account balance. For balances of $5,000 to Unlimited, youâ€™ll earn 0.1% APY. Account balances under $5,000 earn 0.0% APY.
Tailored Checking Pros
Like any bank account, Tailored Checking has its highs and lows when it comes to its structure. What makes this high-yield account a great option for consumers?
Unlimited ATM rebates: If you ever use an out-of-network ATM, youâ€™ll be reimbursed for any fees incurred. This happens automatically at the end of every month. Thereâ€™s nothing to track and no need to apply for a rebate.
No monthly maintenance fees: Youâ€™ll never face any monthly maintenance fees with Tailored Checking as long as you maintain that minimum balance.
No minimum balance requirements: To open an account, youâ€™ll need to make a $100 deposit, but after that, there are no minimum balance requirements.
Paychecks: Once your employer submits their payroll files to the Federal Reserve, you can access your payroll funds. This could be up to 2 days early.
Mobile banking: Use Lending Club Bankâ€™s mobile app (available for iOS and Android) to manage your finances on the go.
Tailored Checking Cons
There are a couple of aspects of Tailored Checking that could cause you to pause a bit before opening an account.
High minimum for earning: This checking account requires a $5,000 minimum balance before it will earn any APY or cashback rewards. Many other online checking accounts have much lower minimum balance requirements.
Monthly maintenance fee: There is a $10 monthly maintenance fee on the account if you do not meet the minimum balance of $5,000. This is not typical of all banks.
Who is Tailored Checking For?
Tailored Checking from Lending Club Bank was designed for people who love online banking and are looking for cashback account options.
If youâ€™re looking for a checking account from a bank with local branches you can visit, however, Lending Club Bank canâ€™t help. They have no branches.
If you only need ATM access, youâ€™re in luck. With your Tailored checking debit card, you can access over 325,000 fee-free ATMS across the US because of partnerships with the ATM networks like NYCE, SUMSM, and MoneyPass. ATM
Tailored Checking may be perfect for people who typically keep more than $5,000 in their business checking account. Thatâ€™s the only way to earn APY and cashback rewards.
If you donâ€™t plan on depositing that much into your checking account, checking accounts with lower minimums may be a better way to go.
How to Open A Tailored Checking Account?
Opening a Tailored Checking business account with Lending Club Bank only takes a few minutes. It can be done online, through Lending Club Bankâ€™s website. The application process takes less than five minutes to complete.
Youâ€™ll need some personal information handy when opening a new account, including your social security number and U.S. street address. New customers also need another checking or savings account to fund their new account.
To open a Tailored Checking account with Lending Club Bank, you need to be at least 18 years old and a citizen or legal permanent resident of the United States.
Once approved, youâ€™ll receive an email from Lending Club Bank, which will include the final steps to get your account started.
How Can I Contact Lending Club Bank?
When logged into their online account, Lending Club Bank customers can chat with customer service. If you want to speak to customer service, you can reach them on the phone at 800-242-0272.
Phone and live chat hours are Mon â€“ Fri, 8:30 AM-12:00 AM ET, and Sat-Sun: 8:00 AM-8:00 PM ET. There is also email support available to Lending Club Bank customers.
Is Lending Club Bank a Real Bank?
Yes, Lending Club Bank is a full-service online bank, offering savings and checking accounts as well as CDs. Other services available through Lending Club Bank include business accounts, cash management services, business escrow services, credit cards, loans, and more.
Lending Club has been around since 2010 and has been a leader in financial services since its inception.
Where is Lending Club Bank Located?
Lending Club Bankâ€™s corporate headquarters is located in Boston, Massachusetts.
Is Lending Club Bank FDIC insured?
Lending Club is FDIC insured (FDIC # 32551). Any deposits made into Tailored checking accounts are insured up to $250,000 per depositor. Your money is safe with Lending Club Bank no matter what happens.
The Bottom Line
Lending Club Bankâ€™s Tailored Checking for business could be the perfect checking account solution for you and your business – IF you can easily keep at least $5,000 in your business checking account. If not, itâ€™s just another business checking account.
Have you used Lending Club Bank and their Tailored Checking account? What has been your experience?