FinTech News
LendingClub Bank Introduces LevelUp Savings Account
The FinTech bank LendingClub has announced a high-yield savings account that will allow customers to “LevelUp” their earned interest.
About the account:
With the new account, customers will be able to earn up to 5.30% APY on funds — which is 11 times the national average. However, to earn this rate, accountholders must deposit at least $250 per month. Those who don’t manage to meet this requirement will still earn the 4.80% APY Standard Rate.
New LevelUp accountholders will be able to earn the LevelUp Rate for their first two statement cycles by default. This will give customers time to set up future recurring deposits. Then, after the initial pair of cycles, the $250 per month requirement will apply.
As LendingClub notes, there is no minimum opening balance required to get started nor is there a balance minimum for earning interest. Additionally, the account doesn’t carry any fees. In fact, the account includes ATM Fee Rebates for fees charged by ATM owners.
LendingClub Bank was created after the marketplace lending platform LendingClub purchased Radius Bank in 2020. As a result, funds deposited with the bank are FDIC-insured up to $250,000 per depositor.
What they’re saying:
Announcing the account, LendingClub CEO Scott Sanborn stated, “We’re excited to offer LevelUp Savings, an all-new deposit product that rewards members who regularly engage with us, while still allowing us the flexibility to manage funding costs as Fed rate policy eases.” Sanborn added, “It’s just one example of how we’re designing products and experiences that provide a win-win for both our members and the company.”
Meanwhile, explaining the inspiration for the account, LendingClub’s Chief Customer Officer Mark Elliot said, “LevelUp Savings is one way we are encouraging our members to make smart financial decisions and rewarding them for it. Available to everyone but designed with our borrowers in mind, the product helps borrowers become savers by removing typical barriers to entry, such as minimum balance requirements, and rewarding their smart financial decisions with additional interest.” Elliot also noted that the $250 per month requirement was purposely “designed to fit within most of our members’ budgets.”
My thoughts:
For context, 5.30% APY for a savings account is quite high — and, in fact, the 4.80% APY base is still better than what some of the top online high-yield savings accounts are currently offering. On top of that, the $250 monthly deposit required to earn the higher rate is quite reasonable, especially since it’s not even a payroll direct deposit. For those reasons, this LevelUp Savings account seems to be a pretty good deal. Plus, the ATM Fee Rebates feature makes this option even more attractive.
Of course, those who sign up in hopes of keeping that 5.30% APY for a while should be aware that these rates are probably going to be lowered in the coming months. That’s because the Federal Reserve has indicated that interest rate cuts are likely. Still, from what I can see, this LendingClub Bank account may be worth opening for the aforementioned perks.
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