Lending Club High-Yield Savings

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
User avatar
Topic Author
KlingKlang
Posts: 1090
Joined: Wed Oct 16, 2013 3:26 pm

Lending Club High-Yield Savings

Post by KlingKlang »

I know that the subject of online "high yield" savings accounts has been beaten to death, but I need some reassurance before I switch to another bank that I'm not familiar with. Does anyone have recent experience with Lending Club High-Yield Savings? It claims to be offering 0.60% APY on deposits over $2500 with free unlimited external transfers. The account features that I am looking for are the ability to make a $100k deposit with an ACH transfer from my B&M bank, the ability to withdraw my entire account balance with an ACH transfer at any time, and not being required to use a smartphone app.

Thank you.
User avatar
Topic Author
KlingKlang
Posts: 1090
Joined: Wed Oct 16, 2013 3:26 pm

Re: Lending Club High-Yield Savings

Post by KlingKlang »

Even though I didn't get any replies to my original post I'll give an update in case any of the 200 people who read it are interested.

I went ahead and opened a Lending Club High-Yield Savings account on January 12 with a $25k transfer from my primary bank's checking account. Everything went smoothly. I received my first month's interest payment on January 31.

Their stated interest rate has just increased to 0.65% APY.

Today I tried to make an additional $25k deposit but it was rejected. Messaged customer service, received a reply that my daily transfer limits are $10k for incoming and external transfers. Somewhat annoyed at this since I would like an account that allows for larger transfer limits.
CoAndy
Posts: 891
Joined: Thu Jun 06, 2013 4:45 pm

Re: Lending Club High-Yield Savings

Post by CoAndy »

Thanks for that. Good to know. I might give it a look.
brawlrats
Posts: 542
Joined: Thu Dec 02, 2021 12:06 pm

Re: Lending Club High-Yield Savings

Post by brawlrats »

KlingKlang wrote: Wed Feb 09, 2022 1:35 pm Today I tried to make an additional $25k deposit but it was rejected. Messaged customer service, received a reply that my daily transfer limits are $10k for incoming and external transfers. Somewhat annoyed at this since I would like an account that allows for larger transfer limits.
That seems highly concerning if you were to put the $100K in you initially mentioned and needed 10 business days to withdraw the full balance if you needed it.

I don't personally see the need to chase HYSA rates, as low as they are. Even at $100K, the difference between .5% and .65% is only $150 of interest each year.
User avatar
Wiggums
Posts: 7028
Joined: Thu Jan 31, 2019 7:02 am

Re: Lending Club High-Yield Savings

Post by Wiggums »

KlingKlang wrote: Wed Feb 09, 2022 1:35 pm Today I tried to make an additional $25k deposit but it was rejected. Messaged customer service, received a reply that my daily transfer limits are $10k for incoming and external transfers. Somewhat annoyed at this since I would like an account that allows for larger transfer limits.
Thanks for the info. I find it interesting/sad that they would not have a limit for the initial deposit and then hold your money hostage coming out
"I started with nothing and I still have most of it left."
Marseille07
Posts: 16054
Joined: Fri Nov 06, 2020 12:41 pm

Re: Lending Club High-Yield Savings

Post by Marseille07 »

I don't like LendingClub because they're one of the "fintechs" struggling to survive. You really have to understand what you're signing up for.
JBTX
Posts: 11205
Joined: Wed Jul 26, 2017 12:46 pm

Re: Lending Club High-Yield Savings

Post by JBTX »

I’m not sure why I’d go with fin tech for 0.65%. You can get close to that from some online banks. If I went with Fintechs I’d go with HM Bradley (1.0% or 3.0%) or maybe T mobile savings at 1.0%. Kabbage, via AMEX has 1.1% business account.
Misenplace
Moderator
Posts: 6091
Joined: Mon Feb 01, 2016 8:46 pm

Re: Lending Club High-Yield Savings

Post by Misenplace »

This thread is now in the Personal Finance (Not Investing) forum (banking).

Moderator Misenplace
BruDude
Posts: 4203
Joined: Wed Dec 29, 2010 11:28 pm
Location: Las Vegas

Re: Lending Club High-Yield Savings

Post by BruDude »

You can easily get 10% on USDC deposits on crypto staking exchanges. Yes there is some level of risk involved but if you’re getting 0.65% you could get the same interest dollars back with a fraction of the deposit. Something to think about, do your own research obviously :sharebeer
Post Reply