LendingClub offers an FDIC-insured personal or business high-yield savings account which currently offers an interest rate of 3.12% APY. LendingClub is member FDIC and charges no monthly fees on the account.
A few weeks ago, when adding the personal LendingClub savings account to our List of Best High Yield Savings accounts, I noticed that they offer a business savings account with the same rate. That might not sound like major news, but it’s actually quite remarkable on a business account.
For some strange reason there is almost no market for offering businesses high-yield savings accounts. You’ll see in the business section of our tracking page around a dozen options to earn more than 0%. That’s it. Compare this with hundreds of excellent high-yield personal savings accounts and CDs.
Even more confounding is that many businesses need to carry high balances to cover monthly or quarterly costs, and they leave a lot on the table by not earning interest. Apparently most business owners take a more hands-off approach on business cash, and the banks happily hold onto your money without having to give anything in return.
And so I found this LendingClub business savings option very interesting as an account that can potentially earn cash-heavy business owners thousands of dollars per year.
LendingClub does not allow opening their business savings account online so you’ll have to call in or chat to have the application emailed over. They do allow opening their Business Tailored checking account online. That account is somewhat interesting with its 1.00% APY interest rate on balances up to $100,000 and might make sense for someone who wants to open it along with the savings account.
Other than this new LendingClub business high yield savings account which tops out at the highest yield business account, there are a couple of other options we’ve listed who offer competitive interest rates. Another alternative might be to open a brokerage account for the business and put the business cash in brokerage money market funds.
I used the live chat feature just now to ask about a business HYS account. The agent told me the offering is currently on pause.
From my secured messaging on an open Business Tailored Checking account about how to have a Business High-Yield Savings account:
October 12, 2022
Support
Hello,
Thank you for contacting us! We would be happy to assist you!
Thank you for your interest in opening 2 business savings account. We will forward this request to the appropriate department to start the account opening process. Please allow 1-3 business days for the department to follow up via email to your email address on file.
If you have any additional questions or request, please let us know.
Thank you,
Customer Service
Lending Club Bank
December 14, 2022
Self
Can an open Tailored Checking account be changed to a Business High-Yield Savings account?
Support
Hello ,
Thank you for contacting us, we would be happy to assist!
We can submit a request to our team to make this change for you, would you like that?
If you have any additional questions, please let us know!
Thank you,
Customer Service
LendingClub Bank
I have also found this Account Conversion form: https://www.lendingclub.com/asset/ls/cms/bank/pdfs/2022-account-converstion-form-03142022.pdf
Thanks for posting. This will be good if I ca get this acct. I know many in business who would be doing this as well.
I submitted this Account Conversion form as instructed at the bottom, by email. I got an email response: “An account conversion can only be done for the same type of product, that is to say from a checking to a checking product and a saving to a saving product. If you would like to open a business savings account please reach out to our customer service department via secure message or via phone at 1-800-242-0272 to initiate the request.”
Thats weird. When I called they said there was no such business savings account offered. Did you call them?
Thank you for your interest in a business savings account. To get started, please complete and submit the attached application and forms.
If you’re new to LendingClub, also include:
Your business certificate or articles of incorporation
Your EIN issuance or page 1 of your most recent tax return
Do not attach your documents to this email. Instead, please use Kiteworks to send us everything. You will receive an email invitation, shortly. You can also send documents using another secure method:
Fax: 617-249-1613
Mail them to:
1 Harbor St Suite 201 Boston, MA 02210
We’ll review your application and contact you with the next steps. If you have any questions you can just reply to this thread.
Until I got my boards approval and all the signatures, it was 11/21 that I uploaded all the required docs using Kiteworks. The Business High-Yield Savings finally opened and available on my login today, 1/27. The intervening time was the worst experience I’ve ever had in opening a bank account, not worth my time to go into here. And their last rate increase was only for the Personal and not on the Business HY.
My recommendation: Run to Live Oak Bank for their business savings currently at 3.5% APY. This account, as well as their business checking, was super easy to open online for me. Spare yourself the trouble of trying to convince Lending Club to let you have their business savings (currently at 3.6%) with their manual application process. Live Oak is hands down better and now with a competitive rate.
You would need to open the Business Checking account and have it converted to the Business Savings.
thats what they are telling me to open this account.
Have you done that? I called and nobody knows a thing claiming it doesnt exist. I can open the business checking and see how to do that. But how do you contact them when nobody knows the product exists? That rate for a business savings is great! I know some big guys who would hit this hard unless there was a dollar limit.
Anyone can share their experience with LendingClub for their actual business/LLC?
I don’t have a business account, but all has been well with their personal accounts. I’d imagine the business experience would be the same.
Thanks! They seem to have a great business offering. Do you know if their Bill Pay is only digital or does it mail checks as well? Also any limit on cash deposits at ATMs?
I’m not sure about the bill pay. I believe you can deposit cash at ATMs although I have not tried it.
Lending Club is great. You can also add a checking account to the High Yield savings. Their checking accounts allow you to use any ATM for free via ATM reimbursements.
Does their savings account have a history of offering competitive rates?
I feel like they are new to the market. but the rate is really competitive.
I’m concerned about whether they’ll maintain it as well. I may give it a shot and hope for the best.
Before readers comment “Yeah, but Dollar Savings Direct pays 3.5%” make sure you thoroughly read and understand the rules and pitfalls of each account. I’m betting my UFB Elite Savings (currently 3.11%) will soon match DSD’s 3.5% so I’m staying put for now.
I really can’t figure out how to open this account on the excellent Lending Club website.
Has anyone been successful?
You have to call/chat (mentioned in the post)
Sorry. I skimmed right by that. But I did chat and supposedly they’ll email me in 3-5 days and then call me. They don’t seem super-eager to open these accounts.
Also, there are some serious ACH limits here – $10K each day in or out.
But it should be possible to initiate the ACH from an external account to push or pull more than $10k, I’d imagine
I just opened the business checking account online last week using my LLC and sent message to open a business savings account. I was told by Rep to wait 10 business days. I will follow up this coming week again and update this group.
Thanks. You just saved me some hassle in opening the business checking. Please post back what they have done! Much appreciated.
I called and nobody knows a thing over there. I think you have to open a business checking account. Fund it and then start a chat session in that account and tell them to convert it to business savings. Very weird.
if you have swagbucks button , it will also show as 20000 sb available… but offer is not showing up on the sb website…
you can see offer here ，But this is a loan application
https://www.swagbucks.com/shop/lendingclub.com
thank you… i guess no harm activating/going thru link… who knows…
Is this a hard pull please respond?