My Experience Reviewing LendingClub Tailored Business Checking Account
Rating as of based on a review of services June 2, 2022.
LendingClub Tailored Business Checking account offers the ability to earn APY and cash back. It also features a way to waive the monthly maintenance fee, free ATMs with ATM rebates, and unlimited transactions without fees.
- Cash back and APY
- Free ATMs and rebates
- No transaction limits
As a small business owner, the last thing you want to be a major hassle is your bank account. You rely on the money your business generates to continue operations, pay yourself and your staff.
Not all banks are the same, though. Even the accounts offered within the same bank can have drastically different fees. Some banks are extremely consumer-friendly to all account holders, while others cater to those with the highest balances. You have other options, though.
In general, online banks tend to offer more flexibility, better interest rates, and fewer fees. The downside is cash-based businesses aren’t able to deposit cash at a branch location in most cases.
LendingClub Bank is an online bank that aims to make your life as a small business owner easier – offering a single small business checking account, the Tailored Checking account.
What is LendingClub Tailored Business Checking account?
The LendingClub Tailored Business Checking account is targeted toward small businesses. It’s offered by LendingClub Bank, an FDIC-insured online bank that was originally founded in 1987. The bank itself is located in Boston, Massachusetts where they have a single, cashless branch.
Their business checking account has received several awards for being one of the best checking accounts for small businesses. Let’s dive into how to open an account and why you might want to.
How does LendingClub Tailored Business Checking account work?
Opening a Tailored Checking account with LendingClub Bank is a quick and straightforward process.
First, click the “Open Online Now” button.
Next, enter your company name and click “Get started.”
Input your first and last name, email address, and promo code, if you have one. Click the “Next” button.
Select the number of accounts you’d like to apply for.
Here, you’ll provide your company description and website. You’ll also certify whether or not your business is involved in any of the industries listed.
After that, you’ll read and agree to LendingClub Bank’s account agreements and disclosures.
Enter your company’s entity type, legal name, doing business as (DBA) name, company phone number, and EIN or tax ID. Click “Next.”
Here, you’ll share more details about your business, including the state of business registration and the date it was established.
Provide your company’s street address. If applicable, check the box to add a different mailing address and complete that, as well. Click “Next.”
Now it’s time to provide your own personal information. You’ll start by filling out your job title and ownership percentage.
Enter your home address.
Provide your phone number, date of birth, and your Social Security Number.
If you want to give anyone else access to the account, you’ll add their information in the next step.
Next, you need to designate the Control Person. This should be someone with the authority to make decisions about your company, like a senior manager.
Fund your account with a bank account or a debit card, and enter relevant information for the option you chose.
After funding, you’ll have to submit your application for the Tailored Checking account before continuing to your new account.
Once your account is open, you can download the LendingClub Business app from the Google Play or Apple store to access your account.
How much does LendingClub Tailored Business Checking account cost?
LendingClub Tailored Business Checking account has relatively few fees for a business checking account. They don’t hide their fees and list them plainly on their website.
In particular, this account doesn’t have fees for excess transactions and offers free ATMs worldwide. They even give you a rebate for fees other banks charge you to use their ATMs. This does exclude international exchange fees, though.
You also get a free business debit card, free bill pay, and no minimum balance requirements after the initial $100 opening requirement.
That said, there is a $10 monthly maintenance fee on accounts with balances below $5,000. If you want checks, they’re available to order for a cost.
Below is a list of fees LendingClub Bank does charge in some instances.
Fee name Fee amount
Abandoned property $50.00 per account
Canadian item collection $7.00
Daily overdraft fee $5.00 per day
Deposited item reversal $8.00
Expedited ATM card $35.00
Expedited debit card $35.00
Foreign item collection $30.00
Paid non-sufficient funds (NSF) charge $25.00 per item
Returned item charge $25.00 per item
Stop payment $25.00
Treasurer’s check $8.00
Domestic wire in $10.00
Domestic wire out (business) $18.00
International wire in $10.00
International wire out $40.00
LendingClub Tailored Business Checking account features
LendingClub Tailored Business Checking account has a handful of useful account features you’re not likely to find with most other business checking accounts.
Balances of $5,000 and up earn interest
Most people have a hard time finding a personal checking bank account that pays interest. Finding a business checking account that pays interest without crazy fees is even rarer.
The APY is currently 1.00% on balances of $5,000 and up; this is competitive indeed for a business checking account. Those looking to earn interest on cash in a business account could be better served with a savings account.
Earn 1% cash back on certain debit purchases
Earning cash back on a debit card is equally as rare as earning interest in a business checking account.
Yet, LendingClub Bank offers 1% cash back when you use your debit card to make signature-based (credit) purchases. The credit will show up at the end of the month after the period in which you earned the cash back.
Quick process to open an account
Opening a business bank account can be a significant hassle. When I opened my Chase business checking account, it was a nightmare. I had to produce all sorts of paperwork and sit next to a representative while they typed what seemed like an endless amount of information into their computer.
LendingClub Bank’s process is much more straightforward. Additionally, it’s paperless, which is extremely rare. The whole process takes just a few minutes and doesn’t require a ton of information. You should have the necessary information easily accessible as a business owner.
Unlimited transactions included for free
Some business checking accounts come with a certain number of fee-free transactions. If you exceed that limit, you start getting charged per transaction. The fees can be as high as $0.50 per item.
LendingClub Tailored Business Checking account offers unlimited transactions with no fees. If you’re a high transaction volume business, this feature could save you a ton of money.
Free ATMs worldwide
ATM fees seem to be steadily rising over time, but you won’t have to worry about it with this account.
The Tailored Checking account offers fee-free ATM transactions. It even rebates you the fees other companies’ ATMs charge you to access your money.
Mobile app and online banking
Since LendingClub Bank only has a single, cashless branch, you have to have another way to access your business checking account. LendingClub Bank provides both online banking and mobile app access so you can always know what’s going on with your checking account.
Free bill pay
If you need a bill pay service, LendingClub Bank offers it for free with their Tailored Checking account.
Reach out to a LendingClub Bank representative to get it added to your account. You can do this either on the phone or by using their online chat feature.
Remote deposit capture
Most people don’t deal with checks anymore, but businesses often have to. Depositing checks is as easy as taking a couple of pictures with remote deposit capture.
You can get access to this by contacting a representative, as well.
If you need to keep track of your business’s finances, LendingClub Bank offers a free solution called Autobooks. You can use it to send invoices and even offer online payment options. The best part is, you can keep track of who has paid you and who has an overdue invoice outstanding.
My experience researching LendingClub Tailored Business Checking account
After reading through the information on LendingClub Bank’s website about their Tailored Checking account, a few things stood out very clearly.
I can tell LendingClub Bank is customer-focused. They offer many features on their Tailored Checking account that I personally would love to take advantage of, that other banks simply don’t provide.
They work to make their processes simple, including signing up for a bank account. The part of the process I went through was super easy and didn’t leave me scratching my head.
Minimal regular fees
Every bank charges fees in some areas. While I was disappointed that they charge a $10 monthly maintenance fee for balances under $5,000, I do think it is reasonable given the features that come with the account.
The list of fees I included above are mostly fees people won’t run into, other than the occasional overdraft or wire fee. Even then, the costs of the fees weren’t outrageous.
The Tailored Checking account offers interest. You actually get 0.10% APY on balances of $5,000 and above. That’s rare in the business checking account space and even for many personal checking accounts.
The other features I loved seeing were fee-free ATMs (including rebates), 1% cash back on debit card signature-based purchases, and unlimited transactions with no per-item transaction fees.
Who is LendingClub Tailored Business Checking account for?
LendingClub Tailored Business Checking account could be an excellent fit for businesses that regularly keep $5,000 or more in their account. This allows these customers to avoid the $10 monthly maintenance fee.
Additionally, those who want to earn interest on balances of $5,000 or more will receive at least a bit. Businesses that spend a lot on their debit cards can earn 1% cash back by making signature-based purchases.
The ideal business primarily accepts payments electronically or by check. These transactions are easy to handle using LendingClub Bank’s online banking or mobile app. High transaction volume clients would also be ideal due to the unlimited transactions allowed with this account.
Who shouldn’t use LendingClub Tailored Business Checking account?
LendingClub Tailored Business Checking account isn’t a good fit for everyone. If your business needs face-to-face service in a local branch, the online banking and mobile app won’t work well for you.
Businesses that have to deposit cash regularly might not want to use LendingClub Tailored Business Checking account unless they pair it with a local bank or credit union that can handle the cash transactions in a local branch. You can deposit cash via an ATM, but those that prefer to deposit at a branch won’t have the option.
If you can’t keep a $5,000 minimum balance in the account, you’ll have to pay the $10 monthly maintenance fee and forgo the 0.10% APY. If smaller balances are typical for you, a local credit union may have a better checking account solution.
Pros & cons
- Can earn APY — Balances of $5,000 and up qualify for interest at 1.00% APY.
- Can earn 1% cash back — Earn cash back when shopping online or using signature-based (credit) transactions with your debit card.
- Unlimited transactions with no fees — You don’t pay for excess transactions, as some other banks require.
- Free ATMs and ATM rebates — There are no ATM fees from LendingClub Bank and they even give you ATM fee rebates for fees charged by other banks.
- No branches for face-to-face experience for most people — LendingClub Bank has a single cashless branch in Boston, Massachusetts.
- Can’t deposit cash at a branch — While you can deposit cash using an ATM, you can’t deposit cash at a local branch.
- $5,000 & up balance required to earn APY — You only earn 1.00% APY on balances of $5,000 & up.
- $5,000 balance required to avoid maintenance fee — You get charged a $10 monthly maintenance fee if you don’t maintain a $5,000 or higher balance.
LendingClub Tailored Business Checking account vs. the competitors
Here’s how LendingClub Tailored Business Checking account stacks up against a couple of their competitors.
LendingClub Bank Tailored Checking Bluevine Novo Introducing Chase Business Complete BankingSM
APY 1.00% APY on balances of $5,000 and up 2.0% on your balance up to $100,000 (conditions apply) None None
Cash back on signature-based purchases 1% None None None
ATM fees None plus ATM rebates for fees charged by other banks No ATM fees at 38,000+ MoneyPass® locations nationally Reimburses ATM fees Doesn’t reimburse ATM fees
Monthly maintenance fee $10 for balances of less than $5,000 None None $15 (can be waived)
Transaction limits None None Initial limits that may change as you do business -
ACH pull limit- $250
ACH push limit- $5,000
Check deposit limit per day- $20,000
Check deposit limit per month- $40,000
Check deposit transaction limit- 20 per month
POS limit- $5,000
ATM withdraw limit- $1,000
100 free transactions with unlimited electronic deposits. Excess transactions cost $0.40 each
Local branches Single branch in Boston, MA 90,000+ retail locations with their partnership with Green Dot None Thousands
Mobile app Yes Yes Yes Yes
Bluevine offers everything a small business could need in a checking account. For starters, you’ll earn 2.0% APY on your balance up to $100,000, provided you meet one of the following monthly eligibility requirements (effective May 1, 2022):
- Spend $500 per month with your Bluevine Business Debit Mastercard®.
- Receive $2,500 per month in customer payments into your Bluevine Business Checking account via ACH, wire transfer, mobile check deposit, or directly from your merchant payment processing provider.
Aside from that, you can make unlimited transactions each month, and you won’t pay any fees whatsoever. That includes transactions within a wide number of ATMs, as Bluevine offers 38,000+ MoneyPass® locations nationally.
You’ll also get some pretty exciting business perks as well, including two free checkbooks, the ability to pay vendors and bills by ACH, wire, or check, and the ability to schedule recurring monthly payments through your account.
And if you’re looking to keep your bank account as secure as possible (who isn’t?), you’ll be happy to know that Bluevine takes that into consideration as well. You can instantly lock your card if it’s stolen or misplaced, and your money is FDIC insured up to $250,000 through Coastal Community Bank.
Novo offers an FDIC-insured account and focuses on simple business banking with no hidden fees. They only charge you $27 for each insufficient fund charges fee and uncollected funds returned fee. You can quickly apply for an account in under 10 minutes.
Novo, like LendingClub Bank, is an online-focused bank. They have no branches, but they don’t charge a monthly maintenance fee. You get all of your ATM fees refunded, free transfers, mailed checks, and incoming wires. The account also easily integrates with many other services, including Stripe, Quickbooks, Slack, Zapier, TransferWise, and Xero.
This account could be a good option if you don’t keep a $5,000 & up minimum balance required to earn APY and avoid monthly maintenance charges with LendingClub Tailored Business Checking account. Unfortunately, you don’t earn cash back with Novo though.
Chase Business Complete BankingSM
Chase is a much more traditional bank with thousands of branches you can access should you need them. They offer a business checking accounts and it comes with many of the hassles of working with a traditional bank. This account does not offer interest or cash back on signature-based purchases either.
The account charges a $15 monthly maintenance fee which can be waived. (This does compare similarly w/ LendingClub Bank)
Unfortunately, you’ll have to deal with other fees, too. You only get 100 transactions per month at no charge with a Chase Business Complete BankingSM Account. You do get unlimited electronic deposits, though. Thanks to Chase’s extensive branch network, you can deposit cash at a branch. You’re limited to $5,000 per statement cycle before you start incurring fees, though.
LendingClub Tailored Business Checking account offers quite a few perks that help distinguish it from its competitors. Earning 1.00% APY on balances of $5,000 and up, even though it’s a relatively low rate, is more than most other business checking accounts offer. Combine that with 1% cash back on signature-based (credit) purchases and you could be rewarded nicely for using this account.
While there is a $10 monthly maintenance fee, it can be waived by keeping a balance of $5,000 or more. If you need access to cash, there aren’t ATM fees to worry about and you even get reimbursed if other banks charge you an ATM fee. As long as you mainly deal with electronic transactions and checks, LendingClub Tailored Business Checking account could be a great fit for you.
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