Yes, LendingClub is FDIC insured. LendingClub Bank, N.A. is a member of the Federal Deposit Insurance Corporation, which means deposits held in its accounts are protected up to $250,000 per depositor, per ownership category, if the bank ever fails. It obtained a national charter by acquiring Radius Bancorp in February 2021, moving from a peer-to-peer lending platform to a full-service digital bank that holds deposits directly.
How to Confirm It Yourself
LendingClub operates under FDIC Certificate Number 32551, with the Office of the Comptroller of the Currency as its primary federal regulator.1Federal Financial Institutions Examination Council. Institution Profile – National Information Center You can verify the bank’s insured status using the FDIC’s BankFind tool, which lets anyone look up an institution by name or certificate number.2Federal Deposit Insurance Corporation (FDIC). BankFind Suite – Find Institutions by Name and Location
Which LendingClub Accounts Are Insured
FDIC coverage applies to LendingClub’s deposit products:3Lending Club. Is My Savings Account FDIC Insured
- LevelUp Savings, a high-yield savings account
- LevelUp Checking
- Consumer Certificates of Deposit (CDs)
Each qualifies as a “deposit” under federal law, which covers money in checking, savings, and time accounts, along with balances evidenced by CDs.4Office of the Law Revision Counsel. 12 USC 1813 – Definitions
The $250,000 Limit and How to Stretch It
Federal law sets the standard maximum deposit insurance amount at $250,000.5Office of the Law Revision Counsel. 12 USC 1821 – Insurance Funds The limit is per depositor, per insured bank, for each ownership category. So if you have both a LevelUp Checking account and a LevelUp Savings account in your name alone, the two balances are added together and insured up to $250,000 total, not $250,000 each.6FDIC. Understanding Deposit Insurance Anything above that in the same ownership category at LendingClub is uninsured.
The way to raise your total coverage at one bank is to hold money across different ownership categories. Each category gets its own $250,000.7FDIC. Account Ownership Categories
Joint Accounts
Joint accounts are insured separately from each owner’s individual accounts. Every co-owner gets up to $250,000 in coverage for their share of all joint accounts at the bank. A couple sharing one joint account can therefore protect up to $500,000 in that account. Add an individual account for each spouse, and the couple’s coverage at LendingClub can reach $1,000,000.
Revocable Trust Accounts
Naming beneficiaries through a payable-on-death designation or a living trust increases coverage based on the number of unique beneficiaries. The FDIC uses this formula: number of owners × number of beneficiaries × $250,000, capped at $1,250,000 per owner.8FDIC.gov. Trust Accounts One owner with three beneficiaries reaches $750,000; one owner with five or more hits the $1,250,000 cap.
Retirement Accounts
Deposits in qualifying retirement accounts, including Traditional, Roth, SEP, and SIMPLE IRAs, are insured up to $250,000 separately from your other accounts at the same bank.9FDIC.gov. Certain Retirement Accounts Naming beneficiaries on an IRA does not raise the limit. Check with LendingClub directly to confirm whether IRA-designated CDs are currently offered.
Business Accounts
Deposits held by a corporation, partnership, or LLC are insured separately from the owners’ personal deposits, up to $250,000 per entity.10FDIC.gov. Your Insured Deposits Sole proprietorships are the exception: those balances are combined with the owner’s personal single accounts and share the $250,000 limit.
To calculate your own situation, the FDIC offers the Electronic Deposit Insurance Estimator (EDIE), which shows exactly how much of your money is insured based on your account types and balances.
What FDIC Insurance Does Not Cover
FDIC insurance only protects deposit accounts. Several financial products are excluded even when offered through an insured bank:11FDIC. Financial Products That Are Not Insured by the FDIC
- Stocks, bonds, mutual funds, and municipal securities
- Crypto assets
- Annuities and life insurance
- Safe deposit box contents
- U.S. Treasury securities (backed separately by the federal government)
Two exclusions matter specifically for LendingClub. First, the investment notes the company issued during its peer-to-peer lending era were securities, not deposits, and any remaining legacy notes carry borrower-default risk with no FDIC protection. Second, a personal loan from LendingClub is not a deposit. FDIC insurance protects depositors against bank failure, not borrowers, and if LendingClub failed, your obligation to repay would typically transfer to whoever acquires the bank’s assets.
What Happens if LendingClub Fails
Federal law requires the FDIC to pay insured deposits “as soon as possible” after a bank failure, and the agency aims to do so within two business days.12FDIC.gov. Payment to Depositors In most closures, the FDIC arranges for another bank to acquire the failed institution’s deposits, so accounts transfer over with no interruption. When no acquirer is available, the FDIC issues checks or direct payments to depositors, usually within a few days.
Accounts tied to formal trust agreements may take longer, since the FDIC often needs to review documentation before releasing funds. If you are not contacted directly after a closure, the FDIC maintains a searchable database of unclaimed funds from closed banks where you can file a claim.13Federal Deposit Insurance Corporation (FDIC). Unclaimed Funds