LendingClub Business Checking Review

As of July 2021, LendingClub Tailored Checking has been rebranded from its former name — Radius Tailored Checking — as part of LendingClub’s acquisition of Radius Bank.

When you’re starting your business, choosing the right bank account is one of the first and most important decisions you’ll make with regard to your business finances. After all, opening a business bank account will help you separate your personal finances from your business finances—plus, you’ll use this account to manage your business funds on a day-to-day basis.

With this in mind, however, there are a multitude of business bank account options on the market, ranging from online-based checking accounts to accounts from traditional brick-and-mortar institutions. This being said, if you’re looking for the fastest and easiest way to open a business checking account, you’ll likely opt for an online-based option, like the Tailored Business Checking account from LendingClub Bank.

Is this LendingClub business checking account right for you?

This review is here to help you decide. We’ll break down everything LendingClub has to offer within their business checking suite—including features, fees, and more. We’ll also discuss a few top alternatives to this LendingClub business checking account—so that you have all the information you need to determine what’s best for your small business

LendingClub is an online-based, FDIC-insured bank. In addition to their robust product suite for personal finances, LendingClub offers a variety of solutions and services for businesses—including loans, savings accounts, and of course, business checking accounts.

Overall, LendingClub offers four business checking account options; however, we’ll be focusing on their Tailored Checking account—as this is the only business checking account they offer to general business customers.

Their other accounts—Relationship Checking, Account Analysis Checking, and Interest Checking—on the other hand, are mainly designed for larger institutional clients.

Having made this distinction, let’s explore the Tailored Business Checking account in more detail.

The Tailored Business Checking account from LendingClub Bank is designed to accommodate businesses of all shapes and sizes and can be opened quickly and easily online. In fact, according to the LendingClub website, the Tailored Checking account can be opened in 10 minutes or less with no documents required.

Additionally, one of the most unique features of this account is that it’s interest-bearing. The Tailored Checking account will earn 1.50% APY on balances up to $100,000 and 0.10% APY on all balances after that. A new perk is that LendingClub offers 1% cash back on online and signature-based “credit” transactions made with a LendingClub debit card—though the account holder needs to maintain an average monthly balance of $500 in order to be eligible. Let’s learn more about the features and fees of this account:

As we’ve mentioned, you can open this business checking account online—however, in order to do so, you’ll need a $100 minimum opening deposit. After this opening deposit, there will be no minimum balance requirement on this account.

This being said, however, LendingClub will charge a $10 monthly maintenance fee on accounts with balances below $500.

LendingClub is very transparent about where you will and won’t incur fees with their Tailored Business Checking account. First, you won’t pay any transaction fees, which includes: deposits and deposited items, ACH debits, ACH credits, checks paid, ATM transactions, and online banking transfers.

You also won’t face fees for:

• Mobile and online banking
• Mobile check deposit
• Electronic statements
• LendingClub Bank business debit card
• Bill pay

As we mentioned above, if you maintain a balance of $500 or more, you won’t have to pay a monthly maintenance fee—if you have an account balance under $500, however, your monthly maintenance fee will be $10.

In addition, there are a number of other instances where you will incur fees with this LendingClub business checking account. These include:

• Daily overdraft: $5 per day
• Deposited item reversal: $8
• Expedited ATM/debit card: $35
• Foreign item collection: $30
• Money order: $3
• Non-sufficient funds (NSF): $25
• Returned items: $25 per item
• Stop payment: $25
• Incoming domestic wire: $10
• Outgoing domestic wire: $18
• Incoming international wire: $10
• Outgoing international wire: $40

LendingClub does not charge fees for transactions with the Tailored Business Checking account. This being said then, you can make an unlimited number of transactions per month with no fees.

Once again, transactions, in this case, refers to deposits, ACH transfers, checks paid, ATM transactions, and online banking transfers.

With the LendingClub Tailored Business Checking account, you’ll have ATM access through two different ATM networks: MoneyPass and SUM. You’ll be able to use your free LendingClub business debit card at an ATM in either of these networks (22,000 ATMs around the U.S.) to withdraw cash or make a deposit (cash or check) with no fee.

This being said, however, it’s important to note that not all MoneyPass ATMs can accommodate deposits, so if you need to deposit cash or checks, you’ll want to use the MoneyPass locator to find a deposit-taking ATM near you. Along these lines, it’s also important to mention that any ATM deposit you make will be subject to a two-business-day hold before you have access to those funds.

Moreover, in addition to the network of fee-free ATMs, LendingClub also offers an ATM fee rebate to all business checking account customers. This means that you can use your debit card at any ATM where it’s accepted and LendingClub will rebate all non-network ATM fees you are charged each month. LendingClub will credit your account automatically for these fees at the end of each statement cycle.

The ATM fee rebate, however, does exclude international exchange fees—so if a bank charges you a currency conversion or cross-border transaction fee when using an ATM, you’ll be responsible for paying those fees.

On the whole, there are very few limits when it comes to depositing cash or checks with this account. As we’ve mentioned, you can deposit cash and checks using a participating ATM with no fees. LendingClub does not place a limit on the amount of cash you can deposit on a monthly basis.

Additionally, you can deposit checks at an ATM or using the LendingClub mobile app. Although LendingClub does not place a monthly limit on the number of checks you can deposit, they do have a limit of $5,000 per day for mobile deposit. You can, however, contact LendingClub to request an increase if necessary.

Unlike some business bank accounts, this LendingClub business checking account does not place a limit or provide an allowance for wire transfers. You can send and receive as many wires as you need; however, each wire will cost a fee—any incoming wire will cost $10, an outgoing domestic wire will be $18, and an outgoing international wire will be $40.

Although we’ve mentioned some of the additional online and mobile banking features included in the Tailored Business Checking account thus far in passing, it’s worth breaking them down in more detail.

With this account, you’ll have access to both free mobile and online banking which includes:

• LendingClub business app with:
  • Mobile wallet capabilities
  • Account management including transfers, history, and alerts
  • Mobile deposit
• LendingClub card app for debit card management
• 24/7 online banking with:
  • LendingClub’s Autobooks invoice and payments platform
  • Check ordering
  • Bill pay
  • Electronic statements
  • Account and security alerts
• Customer service via chat, email, and phone—including 24/7 telephone automated banking

Now that we have a better sense of what the LendingClub Bank business checking account can offer, let’s discuss how it compares to other accounts on the market.

Why should you choose a LendingClub business checking account over an alternative option?

Here are some top advantages and disadvantages to consider.

When it comes down to it, the Tailored Business Checking account is fairly competitive with other online-based business bank accounts on the market. Overall, some of the top benefits of this account are that it’s highly accessible, interest-bearing, and offers great online and mobile banking tools.

As an online-based business checking account, one of the biggest advantages of the Tailored account is that it can be quickly opened online—and requires limited documentation. Additionally, once the account is opened, it can be managed 24/7 online or by using the LendingClub mobile app.

Moreover, whereas some online-based business checking accounts are inaccessible to business owners who deal with cash—the Tailored Business Checking account allows you to withdraw and deposit cash, with no fees or limitations, as long as you use an in-network ATM. Along these lines, the ATM fee rebate is a particularly noteworthy feature, as it allows you to have (essentially) free ATM access wherever you go. In fact, this feature is frequently highlighted in online LendingClub Bank customer reviews.

Plus, with unlimited free transactions, this LendingClub business checking account allows you to easily manage your finances on a day-to-day basis, without having to pay to do so.

Another top advantage of this business checking account is that it bears interest—with a fairly high APY. In this way, the Tailored account is a good balance between a checking and savings account for business owners who need the flexibility of a business checking account, but also want to earn interest on their funds—without having to maintain or save enough to actually invest in a separate savings account.

Although most online-based (as well as brick-and-mortar) business checking accounts offer online and mobile tools, there are a few standout features of those included with the Tailored Business Checking account.

First, not only does LendingClub offer a business mobile app that allows you to manage your account on the go, but they also provide a dedicated debit card management app. The LendingClub card app allows you to turn your debit card on and off, restrict use based on location, set and manage a budget, and receive real-time updates and customized alerts.

This being said, in addition to the standard features included with the online banking suite, this LendingClub business checking account also includes Autobooks, an invoicing and payments platform. Instead of having to manage your invoices separately and connect them to your business bank account, Autobooks gives you the ability to create and send invoices, receive payments, and access detailed reports all in one place.

With all of this in mind, the LendingClub Tailored Business Checking account is a worthwhile option for a variety of business owners who need a flexible and affordable bank account—particularly those that are growing quickly and want to earn interest on their funds without a separate savings account.

Despite these notable benefits, there are also downsides to this LendingClub business checking account, especially if you’re looking for the most affordable option, or conversely, looking for in-person access to your bank.

Let’s discuss further.

Although it’s unfair to say that the Tailored Business Checking account is expensive, the fees associated with this account are a huge downside in comparison to other online-based accounts on the market.

To explain, even though there are no transaction or ATM fees, LendingClub does charge for many other instances including all wires, NSF, and stop payments. Again, although these fees are common with bank accounts, there are several options, like NBKC and Novo that will not charge for some or all of these instances.

Additionally, although there technically is no minimum balance requirement after the $100 opening deposit, the Tailored Business Checking account requires that you maintain a balance of $500 to waive the $10 service fee. Other online-based accounts (again, NBKC and Novo) will be truly free of minimum balance requirements and monthly service fees.

Of course, as an online-based bank, LendingClub does not offer branch or in-person access for their customers (even though they do offer ATM access). This being said, if branch access is something you’re looking for in a business bank account, you’ll want to focus your search on brick-and-mortar options, like Chase or Bank of America.

If you don’t need an interest-bearing account and are looking for a LendingClub business checking alternative with fewer fees, the NBKC Business Account may be one of your top options.

In many ways, the NBKC Business Checking account is similar to the LendingClub Tailored Business Checking account—the NBKC account has no transaction fees, includes a free debit card, accommodates ATM access through the MoneyPass network, and provides free mobile and online banking tools.

This being said, however, there are a few distinct differences between these options. First, NBKC has no minimum opening deposit, no monthly service fees, and truly has no minimum balance requirement. Additionally, whereas LendingClub charges a number of fees for instances like returned items, overdrafts, NSFs, and stop payments, NBKC does not charge fees for any of these things.

In fact, NBKC only charges fees in two instances—sending domestic wires ($5) and sending or receiving international wires ($45). Incoming domestic wires are also free—compared to the $10 fee you’ll pay with LendingClub Business Banking.

Plus, if you do decide that you’d like to earn interest on your funds, NBKC also offers a Business Money Market account—which requires no minimum opening deposit, no monthly fees, yields a 1.01% APY.

With all of this in mind, NBKC is a great alternative to LendingClub business checking for easy access to a free, online-based account with significant flexibility, almost no fees, and a competitive savings account option.

If you’re looking for some of the flexibility associated with online-based business accounts, but also would prefer branch access, you might consider a business checking account from Bank of America.

Bank of America offers two different business checking accounts—both of which can be opened online (although you will need to fax or email certain documents to BoA to complete the application). With both of these accounts, you’ll receive access to all Bank of America locations, as well as ATMs, online and mobile banking, and cash-management tools.

This being said, both of the Bank of America business checking accounts have monthly service fees, $16 or $29.95, depending on the account. However, each account offers multiple different ways to waive the fee.

Additionally, although Bank of America does have transaction and deposit limits on both of their business checking accounts, the threshold is much higher than many competitors. To explain, with the most basic option—the Advantage Fundamentals Business Checking account—you receive 200 free transactions per month and a free cash deposit maximum of $7,500.

Plus, if you opt for the Business Advantage Relationship account instead of the Advantage Fundamentals, you’ll have higher transaction and deposit thresholds, as well as free incoming wires, no fees for stop payments, and the ability to add a Bank of America business savings account without an additional monthly fee.

All of this being said, the Bank of America business checking account options are wholly different than the LendingClub business checking account—however, if you’re looking for an alternative from a brick-and-mortar bank, you’ll find that BoA is certainly a top option.

At the end of the day, only you can decide which business checking account is best for your business—whether the LendingClub Tailored Checking account or an alternative option. This being said, if you’re looking for an affordable, highly accessible, and interest-bearing account, there’s no doubt that this LendingClub business checking account is a worthwhile choice.

On the other hand, if you think you’d benefit from a nearly free business checking account, or an account from a brick-and-mortar bank, or something different altogether, there are a variety of alternatives you can explore—from NBKC to Bank of America and beyond.

Ultimately, your decision should come down to your business needs and what features are most important to you—considering fees, transactions, deposits, tools, and more—and which business checking account can come closest to those ideal requirements.