FinTech News
LendingClub Launches New LevelUp Checking Account
LendingClub is upgrading — or “leveling up” — its checking account.
About LendingClub LevelUp Checking:
Today, LendingClub Bank officially unveiled its new LevelUp Checking account. This new option is now available exclusively to LendingClub members. However, those who are not yet members can become one by opening a LendingClub LevelUp Savings account, CD, or a loan.
With LevelUp Checking, customers can earn 1% APY on balances over $2,500. Members who receive direct deposits to their account can also earn 1% cashback when using their debit card for qualifying purchases at gas stations, grocery stores, and pharmacies. Plus, members with a LevelUp Checking account, a LendingClub loan, and who receive direct deposits can earn 2% back on their monthly loan payments.
While accountholders won’t earn interest on balances below $2,500, there is no minimum balance requirement nor are there any account fees. Customers can also enjoy unlimited ATM rebates, early access to direct deposit payroll checks, and more.
LevelUp Checking joins LevelUp Savings, which LendingClub rolled out last August. Currently, that account offers 4.40% APY to those with monthly direct deposits of $250 or more (those who don’t meet this requirement will still earn 3.40% APY).
In Comparison:
LendingClub’s new LevelUp Checking replaces its previous offering called Rewards Checking. That product offered a lower interest rate (0.1% APY) but those who maintained a monthly balance of at least $2,500 earned 1% cashback on all debit card purchases.
What They’re Saying:
Announcing this updated account, LendingClub Chief Customer Officer Mark Elliot stated, “LevelUp Checking delivers cash back for essential purchases like gas and groceries while stacking on additional cash back for our borrowers who make on-time payments to their LendingClub personal loan.”
Elliot added, “By offering rewards consumers typically seek by using a credit card, we’re fundamentally changing how our members spend – rewarding them for using money they have instead of money they borrow, and recognizing their smart money moves.”
My Thoughts:
Looking at the previous Rewards Checking, I do think that LevelUp Checking does seem to be an upgrade for most customers — but especially for those with LendingClub loans. While most credit cards will earn you 1% or better on purchases, the 2% back on loan payments is something special. Meanwhile, the perk I’m most appealing in is the unlimited ATM rebates, as I’ve found this to be a handy feature with other accounts.
I do find it interesting that LendingClub is making existing membership a requirement for opening this new account. While this basically just means opening a savings account with your checking account, it seems like a strange barrier to entry. Hopefully that doesn’t backfire on them and serves its intended purpose of driving more people to LendingClub’s various products.
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