Our Take
The bottom line:
You’ll earn interest and cash back with this online business checking account, if you can meet the rather low minimum balance requirements. Other perks include easy cash deposits and no ATM fees anywhere, ever.
LendingClub Tailored Checking
Checking
Member FDIC
Monthly fee
$10.00 Waived with $500 minimum balance
APY
1.50% With $0 min. balance for APY
Bonus
N/A
Pros & Cons
Pros
- Unlimited fee-free transactions; no overdraft fees.
- Earn 1.50% APY on balances up to $100,000 and 0.10% on all balances after that.
- Fee-free ATM access with automatic refund of third-party ATM fees (worldwide).
- Cash deposits via MoneyPass and SUM ATMs.
- Earn unlimited 1% cash back on debit card purchases.
Cons
- $10 monthly fee.
- $100 minimum opening deposit requirement.
- Minimum $500 balance required to earn cash-back rewards and waive monthly fee.
- Limits of $10,000 on both incoming and outgoing ACH transfers.
Full Review
LendingClub Tailored Checking
shines thanks to a slew of business-friendly features, including easy cash deposits, cash back on debit card purchases and unlimited automatic ATM fee refunds. And the cherry on top: 1.50% APY on balances up to $100,000 and 0.10% APY on all balances after that
.Given that package of perks, it’s easy to see why
LendingClub Tailored Checking
is rated near the top of our picks for best business checking accounts.The account does have a few catches and caveats, to be sure. There is a monthly fee ($
10
), but it can be avoided with an average monthly balance of $500
. And while the bank’s cap on outgoing ACH transfers is a bit low — particularly for new customers — it increases as your business account hits certain balance thresholds. LendingClub is an online bank with corporate offices in multiple states, but no public branches. However, unlike some online business checking accounts, LendingClub does not use a third-party financial institution to provide its banking services and is directly insured by the Federal Deposit Insurance Corp.
» MORE: Best banks for small business
LendingClub Tailored Checking is best for small-business owners who:
- Want a high-yield business checking account.
- Can maintain a $500account balance to waive the $10monthly fee and activate cash-back rewards.
- Need to make occasional cash deposits.
- Don’t make frequent outgoing wire transfers.
Does your business make frequent outgoing wire transfers? LendingClub charges high fees for outgoing wire transfers: $18 (domestic) and $40 (international). But the
Mercury Business Bank Account
offers free incoming and outgoing wire transfers (domestic and international). Mercury is a business cash management account with a Treasury option that earns up to 5.43% APY, as of this writing. LendingClub Tailored Checking at a glance
Monthly fee: | $ 10 , waived with average monthly balance of $500 . |
Minimum opening deposit requirement: | $ 100 . |
APY: | 1.50% on balances up to $100,000 and 0.10% on all balances after that. |
Transactions: | Unlimited. |
Bonus: | None. |
How to open a LendingClub Tailored Checking business account
LendingClub Tailored Checking
accounts are opened entirely online via the bank’s website or mobile app. To be eligible, you must be at least 18 years old, a U.S. citizen or permanent resident and have a valid U.S. address. Your business also needs a digital presence (website or social media) to qualify.What you need to open an account
The online application for
LendingClub Tailored Checking
asks for information about you, your business and any other business owners.- Personal information: Name, home address and phone, email, date of birth and Social Security number for primary account holder and any business owners with at least a 25% stake in the company.
- Business information: Business name, physical address, web presence, phone number, entity type (LLC, corporation, etc.), industry served and employer identification number (EIN). You need to note the date your business was established and where it is registered. And answer questions related to estimated daily and monthly ACH and wire transfers.
- Required documentation: This varies by business type but can include articles of incorporation, certificate of formation, Doing Business As (DBA) documentation and/or partnership agreements.
You also will need to link an existing bank account or debit card in order to fund your new account, pending approval.
Once you’ve submitted your application, the review process generally takes anywhere from two to five business days. After you receive approval from LendingClub, you’ll be able to log in to online banking, as well as download the mobile app, to set up and manage your checking account.
You’ll receive your LendingClub business debit card within seven to 10 days — and you can contact customer service to request additional cards for employees.
Where LendingClub Tailored Checking stands out
Easy cash deposits: Only a handful of online business checking accounts allow fee-free cash deposits — LendingClub is among them. Account holders can deposit cash as needed at participating ATMs in the MoneyPass and SUM networks for no additional charge. While there is no monthly cap on cash deposits (something most brick-and-mortar business banks implement), individual ATMs may limit how much you can deposit at any given time.
High APY: You can earn
1.50% APY on balances up to $100,000 and 0.10% APY on all balances after that
with your LendingClub business account. If you don’t want a separate business savings account — or don’t want to be limited by those accounts' typical transaction limits — LendingClub Tailored Checking
still offers you the chance to earn interest on your business funds. And if you do want a dedicated savings account, LendingClub has its own business savings option (with 3.60% APY, as of this writing) that's only available to customers with a LendingClub Tailored Checking
account.🤓 Nerdy Tip
If you want to earn even more interest and don't need access to features like checks or a debit card, consider a business savings account. Our top pick earns4.00%
and has no monthly fee.No ATM fees anywhere: LendingClub is part of the MoneyPass and SUM networks, giving account holders access to more than 40,000 ATMs nationwide. But LendingClub goes a few steps further to ensure business checking customers don’t pay ATM fees. For starters, LendingClub doesn’t charge any fees if you venture outside of its ATM networks. And the bank will automatically reimburse you for ATM fees by third-party banks and ATM operators — anywhere in the world (international currency exchange and transaction fees still apply, though).
Earn cash back with your debit card: You can earn an unlimited 1% cash back on online and signature-based credit transactions (where you select credit instead of debit at an in-store point-of-sale terminal) made with your LendingClub debit card — provided you maintain an average monthly balance of $
500
or more.Where LendingClub Tailored Checking falls short
Account minimum required to access perks: You need to maintain an average monthly balance of at least $
500
to waive the $10
monthly service fee and unlock debit card rewards on your LendingClub Tailored Checking
account. While that is a rather low bar to clear, it is still a bar. Business owners looking for perks with no strings or fees should consider Grasshopper Business Checking Account
, a free business checking account that has a high APY (up to 2.25%
) and earns 1% back on qualified debit card purchases.Low cap on ACH transfers:
LendingClub Tailored Checking
accounts have a $10,000 per day cap on incoming and outgoing ACH transfers. That limit can increase after the account is open for 30 days, assuming you hit certain balance thresholds (learn more here). If those transfer caps are a deal breaker for your small business, consider Bluevine Business Checking
. This free online account has far more lenient ACH limits than LendingClub — you’re allowed up to $20,000 per ACH transfer. Bluevine doesn’t limit how many transfers you can make each day, but there is a monthly cap: up to $100,000 per 30-day period for outgoing wire and ACH transfers.High wire fees: Businesses that rely on wire transfers — especially international wires — may want to steer clear of
LendingClub Tailored Checking
. The account charges high outgoing wire transfer fees: $18 (domestic) and $40 (international). Instead, consider a business checking account with free wire transfers, like Mercury Business Bank Account
. Mercury doesn’t charge for wire transfers, international or otherwise, and businesses with high deposits can also open a Mercury Treasury account to earn top-rate yields on excess operating funds. Mercury doesn’t support cash deposits, though. Another option for wire transfers:
Relay Business Checking
. This account accepts cash deposits at compatible AllPoint ATMs, has free incoming wires and low outgoing wire transfer fees: $5 (domestic) and $10 (international). Relay Business Checking customers can also open a Relay Business Savings
account and leverage automatic transfers to earn interest:Earn 1% APY on balances of less than $50,000; 1.5% APY on balances between $50,000 and $250,000; 2% APY on balances between $250,000 and $1 million and 3% APY on balances of more than $1 million.
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