What will the interest rate on LC's new high-yield savings account be?

[Fred93]

Lending Club has told us they will soon announce a special "a high-yield savings account exclusively available to our Notes investors".  What an opportunity! 

They have not yet said what the interest rate on this special high-yield account will be. 

Would you like to guess?  Place your bets gentlemen.  Pick the answer closest to your guess.

[bkcarp00]

It's going to be not even worth your time. Most likely less than .50.

[Rob L]

Marcus and Ally are at 0.60%. So, I guessed 0.70% thinking LC will might possibly offer a tad more to be competitive.

I'm sure current note holders are all so pleased with LC they can't wait for this terrific opportunity! Probably should have guessed 0.50% but didn't factor this enthusiasm in.

Actually the whole idea doesn't make sense. LC is gonna spend a bunch of money creating a product for the very investors they walked away from? Really? You might add an "It ain't gonna happen" choice to your poll for the mega cynics like myself.

[macroman7799]

If they did manage to come up with 0.70% or more that might  make it wothwhile to move non-LC money to the new account but that just doesn't seem likely. My question, will there be an IRA version of the new account because my LC account is an IRA.

[Rob L]

If they did manage to come up with 0.70% or more that might  make it worthwhile to move non-LC money to the new account but that just doesn't seem likely. My question, will there be an IRA version of the new account because my LC account is an IRA.

I have a checking account with TAB bank (online only, no branches) and am extremely pleased.
They also offer a "high yield" savings account at 0.90%, but do not appear to have an IRA version that I could find.
I've thought about it but I'm so happy with Ally it isn't worth the extra 30bps on the relatively small amount I keep in the account.

https://www.tabbank.com/high-yield-savings/
https://www.depositaccounts.com/banks/tab-bank.html#rates

[jheizer]

I see my vote (.30%) is pretty far on the pessimistic side so far.  I think they are just saying it to try to shut people up.

[Debt Free]

Will it be simply an "introductory offer" valid only for your initial opening deposit?  Or expires after 12 months.
Will there be a minimum deposit maintained amount of say $10,000 in order to achieve it?  Otherwise it reverts to 0.01%.
Will it be  the scenario of only up to the first $3,000 and then any amount above that is the standard rate of 0.01%?

[JDII]

Will it be simply an "introductory offer" valid only for your initial opening deposit?  Or expires after 12 months.
Will there be a minimum deposit maintained amount of say $10,000 in order to achieve it?  Otherwise it reverts to 0.01%.
Will it be  the scenario of only up to the first $3,000 and then any amount above that is the standard rate of 0.01%?

I wouldn't call myself an LC cheerleader but I was optimistic on the company.  I don't think that I will trust them anytime soon with any new product. They spent a year or more saying they were working on getting the banned states back on the list for investment.  Instead they went the opposite direction and are closing down. 

Whatever new product they at this point has to be looked at with a very skeptical set of eyes.

[Fred93]

Will it be simply an "introductory offer" valid only for your initial opening deposit?  Or expires after 12 months.
Will there be a minimum deposit maintained amount of say $10,000 in order to achieve it?  Otherwise it reverts to 0.01%.
Will it be  the scenario of only up to the first $3,000 and then any amount above that is the standard rate of 0.01%?

You must have dealt with some banks.  :-)

Well, there are clues.  Here are the terms for radius bank's high yield savings account, available to anyone...

Radius High-Yield Savings is a free savings account with no monthly maintenance fee, no minimum balance requirement after $100.00 to open the account, and is FDIC-insured up to the maximum allowed. Annual Percentage Yield (APY) accurate as of 10/10/2020. Minimum amount to open account is $100.00. Rate tiers are as follows, 0.00% APY applies to balances of $0.01–$9.99, 0.05% APY applies to the entire balance on balances of $10.00–$2,499.99, 0.15% APY applies to the entire balance on balances of $2,500–$24,999.99, and 0.25% APY applies to the entire balance on balances of $25,000 or more. Rates may change after account is opened. Fees may reduce earnings.

So if 0.25% is available to any Tom Dick or Harry, I'd imagine that long-standing beloved LC customers would get at least 0.3%.

They don't seem to make any of the fine print available.  Maybe you can read it if you begin an application.  I was unwilling to give them my email address, so I didn't do that.

[AnilG]

0.25% is not available to "all" Tom Dick or Harry but the ones with $25,000 or more account balance.

Well, there are clues.  Here are the terms for radius bank's high yield savings account, available to anyone...

Radius High-Yield Savings is a free savings account with no monthly maintenance fee, no minimum balance requirement after $100.00 to open the account, and is FDIC-insured up to the maximum allowed. Annual Percentage Yield (APY) accurate as of 10/10/2020. Minimum amount to open account is $100.00. Rate tiers are as follows, 0.00% APY applies to balances of $0.01–$9.99, 0.05% APY applies to the entire balance on balances of $10.00–$2,499.99, 0.15% APY applies to the entire balance on balances of $2,500–$24,999.99, and 0.25% APY applies to the entire balance on balances of $25,000 or more. Rates may change after account is opened. Fees may reduce earnings.

So if 0.25% is available to any Tom Dick or Harry, I'd imagine that long-standing beloved LC customers would get at least 0.3%.

They don't seem to make any of the fine print available.  Maybe you can read it if you begin an application.  I was unwilling to give them my email address, so I didn't do that.

[macroman7799]

In other words, the answer is that the interest rate is not enough except that it will serve as a transitional vehicle for people moving their funds out of Lending Club.

[trixh0]

Dear LC,

my idea of a compelling rate:



If you be so kind here my suggestion:

Return all my "Available cash" on Jan 4th, 2021.
All cash that collects afterwards in my LC account will earn the above interest until I withdraw or my last note enters either "Fully paid" or "Charged off" status.

Thanks for consideration,
Jens

[FILTER]

Its going to be PEANUTS!!   My guess would be less than .6%   If Savings Rate is above 1% I will be stunned !!!