3 Reasons to Open a LendingClub Savings Account Before the Fed Changes Rates
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If you're just now jumping on the high-yield savings account (HYSA) train, don't worry -- you haven't missed out completely.
But the clock's ticking.
The Federal Reserve has started cutting rates and signaled that more cuts are coming -- possibly continuing through 2027. When that happens, savings account APYs that are over 4.00% today will shrink drastically.
That's why I've been recommending the LendingClub LevelUp Savings account to friends and family lately. It's got one of the best APYs on the market, offers helpful built-in tools, and doesn't bury the good stuff behind complicated hoops or fine print.
Here's why it's worth opening an account.
1. Get a high APY while they last
Right now, the LendingClub LevelUp Savings account offers 4.20% APY with $250+ in monthly deposits.
Many big banks offer only 0.01% APY on their basic savings accounts. Here's the difference that makes over a year based on different savings balances:
| Balance | 0.01% APY | 4.20% APY |
|---|---|---|
| $5,000 | $0.50 | $210.00 |
| $10,000 | $1.00 | $420.00 |
| $20,000 | $2.00 | $840.00 |
These rates aren't locked in forever. As the Fed lowers rates, most banks will start cutting their savings yields. So if you're thinking about earning passive interest on your emergency fund or short-term savings, now's the time to secure a strong return.
2. No fees and you can open immediately
Unlike traditional banks that surprise you with "junk fees" everywhere they can, today's top online savings accounts don't charge any fees.
With a LendingClub LevelUp Savings account, there are:
- No fee to open
- No monthly maintenance fees
- No minimum balance requirements
- Free ATM card and waived ATM fees nationwide
You can open an account online in under five minutes. Just remember to set up a small monthly deposit of $250 or more to earn the top APY.
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LendingClub LevelUp Savings
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- Competitive APY
- No fees
- Easy ATM access
- Unlimited number of external transfers (up to daily transaction limits)
- Requires you to make monthly deposits to earn the best APY
- ACH outbound transfers limited to $10,000 per day for some accounts
- No branch access; online only
The LendingClub LevelUp Savings account has a lot to offer. At the top of the list is its high APY, though you must deposit monthly to earn the best rate. Next is zero account fees, a strong and straightforward perk. Finally, you get a free ATM card, which you can use to withdraw from thousands of ATMs nationwide. Interested? You can open an account with $0.
3. Easy access when you need it, plus FDIC insurance
Every LendingClub LevelUp Savings account comes with a free debit card and full ATM access, making it just as convenient as a checking account if you need cash ASAP.
You can withdraw cash fee-free at thousands of SUM and MoneyPass ATMs nationwide. And if you happen to use an out-of-network ATM, LendingClub will rebate the fee -- unlimited times.
There's also an in-app locator tool that helps you find the closest ATM in seconds.
And of course, your deposits are FDIC insured up to $250,000, so your savings balance is protected while it grows.
Open an account before rates fall further
If you're sitting on cash in a low-yield bank account, you may as well earn the highest APY you can. Especially while 4.20% rates are still available.
And if you're trying to build up savings, having a set-it-and-forget-it system that quietly encourages you to save more is a good start.
There's zero downside here. LendingClub has no fees, doesn't lock up your money, and takes just a few minutes to set up.
See our full LendingClub LevelUp Savings account review, and learn how to earn 4.20% APY with $250+ in monthly deposits today.
Our Research Expert
Joel O’Leary is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, mortgages, and other personal finance topics. Joel has been writing about personal finance since 2018, previously leading editorial content for the How To Money podcast and serving as a resident writer at Budgets Are Sexy. He bought his first rental property at age 18, funding the down payment with savings from his high school job at McDonald’s -- a testament to his lifelong passion for smart money decisions. His work aims to make personal finance accessible and actionable for everyday readers. When he’s not writing, Joel enjoys surfing and spending time with his family.