Choosing a small-business checking account can quickly get overwhelming. It’s not always clear which features add value and which serve mainly to confuse, and many accounts come with frustrating transaction restrictions that can really bite as your business grows.
So for many small-business owners and independent professionals, simpler is better. LendingClub Bank seems to agree. Its LendingClub Bank Tailored Checking is an easy-to-understand, user-friendly bank account for small businesses and freelancers that pays interest on eligible balances, earns rewards on eligible purchases, and allows unlimited transactions.
It’s not the only small-business bank account worth investigating, but it should definitely be on your list. Take some time to learn how it stands out and what it can do for your business.
What Is LendingClub Bank Tailored Checking?
LendingClub Bank Tailored Checking is a small-business bank account with a $10 monthly maintenance fee. The fee is waived in any month during which you maintain a $500 minimum balance, so while not technically a free checking account, most users don’t pay a monthly fee.
LendingClub Bank Tailored Checking pays interest on eligible balances: 1.50% APY on balances up to $100,000 and a much lower, variable rate on balances above that amount. Eligible debit card purchases earn 1% cash back with no caps or restrictions on earning potential.
This account has some other notable benefits, including no monthly transaction limits, unlimited ATM reimbursements at U.S. ATMs, and basic accounting and expense management tools built into the online and mobile interface.
What Sets LendingClub Bank Tailored Checking Apart?
LendingClub Bank Tailored Checking stands out from other small-business checking accounts in several ways:
- Relatively generous yield. This account pays 1.50% APY on balances up to $100,000. Balances above that amount earn only a token yield, but the threshold is high enough not to affect most users.
- Unlimited ATM reimbursements. LendingClub Bank reimburses ATM withdrawal fees and other surcharges at any U.S. ATM, regardless of network. That’s a big selling point for businesses that regularly use cash.
- Cash back on all eligible purchases. This account earns unlimited 1% back on eligible purchases. LendingClub Bank defines eligible purchases generously, such that basically any debit card purchase using the “credit” option qualifies.
- Built-in accounting tools. This account comes with built-in expense management and basic accounting tools built in. You can also integrate external accounting software like QuickBooks, but if your business has relatively simple finances, that might not be necessary.
Key Features of LendingClub Bank Tailored Checking
Now that you know what sets LendingClub Bank Tailored Checking apart from most competing accounts, dive into the details of its core features and see how they work together.
Account Fees & Waiver Requirements
This account has a $10 monthly maintenance fee. You can waive this fee in any given statement cycle by maintaining a minimum balance of $500 or greater in your account.
Minimum Balance Requirements
There’s no minimum balance to open or maintain this account. However, if you want to avoid the monthly maintenance fee, you need to keep at least $500 in the account at all times.
This account yields 1.50% APY on balances up to $100,000. Balances above that amount pay interest at a much lower rate, but all balances earn some interest.
Cash Back on Eligible Purchases
This account earns unlimited 1% back on eligible purchases. Any online or in-person purchase qualifies, but you must select the “credit” option at the point of sale if it’s not already preselected by the payment system.
ATM Access & Reimbursement
LendingClub Bank reimburses fees and surcharges at all U.S. ATMs without any network or dollar limits. International ATM fees may apply.
Autobooks is LendingClub Bank’s built-in business money management suite. It offers some useful capabilities at no additional cost:
- Create and send customizable invoices
- Offer clients an option to pay your invoice directly via ACH or credit/debit card
- Detailed expense and accounts payable/receivable reports
Autobooks is powerful enough to replace your third-party invoicing software and could potentially replace your third-party accounting platform if your business has relatively simple finances.
LendingClub Bank offers seamless integrations with popular external business and personal financial software, including QuickBooks, Mint, and Quicken.
The LendingClub mobile app has a rich set of mobile features that fully replicate the traditional online banking experience:
- Mobile check deposit
- Real-time transaction history
- One-time and scheduled bill payments
- Send and receive money via ACH or wire transfer
- Full Autobooks functionality
- Check orders and reorders
- Electronic statement access
The mobile app itself is well-reviewed and has been downloaded tens of thousands of times by verified users.
You can order standard business checks from your account dashboard. A fee may apply for each order, depending on the design and other variables.
Pros & Cons
LendingClub Bank Tailored Checking has several key benefits, along with a couple notable downsides.
LendingClub Bank Tailored Checking is unusually generous for a basic business checking account and has some useful built-in business tools.
- Generous yield for a checking account. This account yields 1.50% APY on balances up to $100,000. That’s a much better rate of return than most small-business checking accounts offer.
- Unlimited cash back on eligible purchases. This account also earns unlimited cash back on eligible purchases. While not competitive with the best cash-back credit cards, it’s a big advantage over competing accounts without rewards programs at all.
- Built-in invoicing and accounting tools. LendingClub’s Autobooks feature is a useful invoicing and accounting tool that could potentially replace costly third-party software. The invoicing features are especially useful for businesses juggling many different client relationships.
- Unlimited ATM fee reimbursement. There’s no limit to the number or dollar value of U.S. ATM fees and surcharges LendingClub Bank reimburses. That’s excellent news if your business pays for lots of stuff in cash.
- Easy to waive the monthly maintenance fee. It’s relatively easy to waive the $10 monthly maintenance fee with LendingClub Bank Tailored Checking. Just keep at least $500 in the account at all times, a much lower threshold than many other accounts require.
- Unlimited transactions. There’s no limit to the number of transactions you can make with your account each month. That’s a big advantage over traditional business checking accounts, which often limit users to 50 or 100 free transactions per month before charging a per-transaction fee.
LendingClub Bank Tailored Checking isn’t quite a one-stop shop for business owners looking to manage their affairs, and the monthly fee isn’t ideal for users with volatile cash flow.
- Built-in tools not as extensive as some competitors. Autobooks’ main capabilities are invoicing and expense management. They’re useful but not as comprehensive as some competing banks’ built-in tool suites, which include tax management among other functions.
- $10 monthly maintenance fee for low balances. If you anticipate having trouble keeping at least $500 in your account at all times, LendingClub Bank Tailored Checking might be too expensive for you.
How LendingClub Bank Tailored Checking Stacks Up
Before you apply for a LendingClub Bank Tailored Checking account, compare it to at least one other small-business checking account to confirm that it makes sense for your needs. One popular alternative is the NorthOne Deposit Account.
|LCB Tailored Checking||NorthOne|
|Monthly Fee||$10, but easy to waive||$10|
|Minimum Balance||$0 or $500 to waive the monthly fee)||$0|
|Yield||Up to 1.50% APY||None|
|ATM Fees||None (unlimited reimbursement)||None|
|Invoicing||Built in||External integration|
|Accounting||Built in||External integration|
|Tax Management||External integration||External integration|
|Rewards||Unlimited 1% back on eligible purchases||None|
LendingClub Bank Tailored Checking offers better value than NorthOne overall thanks to an easy-to-waive maintenance fee, cash back on eligible purchases, and a relatively generous interest rate. It also has useful built-in features that NorthOne lacks. The only real downside is the effective $500 minimum balance requirement.
LendingClub Bank Tailored Checking is one of the better small-business bank accounts on the market. That’s quite an achievement given the sheer amount of competition it faces.
If you own a very small business or operate an independent professional practice, Tailored Checking has just about everything you need in a bank account. It’s more generous than most alternatives, with a very nice yield on eligible balances and a strong cash-back program.
That said, LendingClub Bank Tailored Checking isn’t perfect. It lacks some built-in features that more comprehensive accounts offer, and it’s not designed to scale with rapidly growing businesses. But for the large majority of would-be users, it’s an excellent choice.