Yes, LendingClub is FDIC insured. LendingClub Bank, N.A. is a member of the Federal Deposit Insurance Corporation, and deposits held in its accounts are protected up to $250,000 per depositor, per ownership category — the same federal coverage you would get at any traditional bank. The bank operates under FDIC Certificate Number 32551, which you can confirm yourself through the FDIC’s BankFind tool.1Federal Deposit Insurance Corporation (FDIC). BankFind Suite – Find Institutions by Name and Location
LendingClub became a chartered national bank in February 2021 after acquiring Radius Bancorp, which shifted it from a peer-to-peer lending platform to a full-service digital bank that holds deposits directly. The Office of the Comptroller of the Currency is its primary federal regulator.2Federal Financial Institutions Examination Council. Institution Profile – National Information Center
Which LendingClub Accounts Are Covered
FDIC insurance applies to money placed in standard deposit accounts. At LendingClub, that currently means three products:
- LevelUp Savings, a high-yield savings account
- LevelUp Checking
- Consumer Certificates of Deposit
Each one qualifies as a deposit under federal law, which covers checking, savings, and time accounts, including balances evidenced by certificates of deposit.3Office of the Law Revision Counsel. 12 USC 1813 – Definitions All deposits at LendingClub Bank are insured up to applicable FDIC limits.4Lending Club. Is My Savings Account FDIC Insured
Some things sold or held through a bank are not deposits and are not covered. That includes stocks, bonds, mutual funds, crypto assets, annuities, and life insurance.5FDIC. Financial Products That Are Not Insured by the FDIC Two boundaries matter at LendingClub specifically. First, the investment notes LendingClub issued in its peer-to-peer era were securities, not deposits, and any legacy notes carry no FDIC protection. Second, personal loans from LendingClub are not insured deposits either; FDIC coverage protects depositors against bank failure, not borrowers against loan terms.
How the $250,000 Limit Works
Federal law sets the standard maximum deposit insurance amount at $250,000.6Office of the Law Revision Counsel. 12 USC 1821 – Insurance Funds The limit is per depositor, per insured bank, per ownership category. Those last two words do most of the work.
If you hold a checking account and a savings account at LendingClub, both in your name alone, they sit in the same ownership category — single accounts — and share one $250,000 cap. They are not insured for $250,000 each. If your total single-account balance at LendingClub were $300,000, the FDIC would pay $250,000 and the extra $50,000 would be at risk.7FDIC. Understanding Deposit Insurance
Getting More Than $250,000 Insured at LendingClub
Each ownership category gets its own $250,000 at the same bank, so a single person can be covered well above the headline limit by spreading funds across qualifying categories.8FDIC. Account Ownership Categories
Joint Accounts
Joint accounts are insured separately from each owner’s individual accounts. Each co-owner gets up to $250,000 for their share of all joint accounts at the bank. A couple can protect $500,000 in a single joint account, and if each spouse also keeps a single account, the household can reach $1,000,000 in coverage at LendingClub.7FDIC. Understanding Deposit Insurance
Trust and Payable-on-Death Accounts
Naming beneficiaries, either through a payable-on-death designation or a living trust, increases coverage based on how many unique beneficiaries you name. The FDIC calculates trust coverage as number of owners times number of beneficiaries times $250,000, capped at $1,250,000 per owner.9FDIC.gov. Trust Accounts One owner with three beneficiaries reaches $750,000; one owner with five beneficiaries hits the $1,250,000 ceiling.
Retirement Accounts
Deposits in qualifying retirement accounts, including Traditional, Roth, SEP, and SIMPLE IRAs, are insured up to $250,000 separately from your other deposits at the same bank.10FDIC.gov. Certain Retirement Accounts Naming beneficiaries on an IRA does not raise coverage above that limit. Check with LendingClub to confirm which IRA-designated deposit products it currently offers.
Business Accounts
Deposits held by a corporation, partnership, or LLC are insured separately from the owners’ personal deposits, up to $250,000 per entity.11FDIC.gov. Your Insured Deposits Sole proprietorships are the exception: those balances are combined with the owner’s personal single accounts under the same $250,000 cap.
What Happens if LendingClub Fails
Federal law requires the FDIC to pay insured deposits as soon as possible after a bank fails, and the agency’s stated goal is to make those payments within two business days.12FDIC.gov. Payment to Depositors In most failures, the FDIC arranges for another bank to acquire the deposits, and customer accounts transfer with little or no interruption. If no acquirer is available, the FDIC issues checks or direct payments to depositors, typically within days of the closure. Accounts tied to formal trust agreements may take longer because the FDIC has to review the trust documentation before releasing funds.
How to Verify Your Own Coverage
Use the FDIC’s BankFind tool and search Certificate Number 32551 to confirm that LendingClub Bank is currently insured.1Federal Deposit Insurance Corporation (FDIC). BankFind Suite – Find Institutions by Name and Location To check how much of your own money is covered, run your account types and balances through the FDIC’s Electronic Deposit Insurance Estimator (EDIE). If your deposits sit across more than one ownership category, EDIE will tell you whether any portion exceeds the limits and sits uninsured.