Score an Eye-Popping 5.30% APY With This Savings Account Before Rates Drop

San Francisco-based LendingClub, an online-only bank, recently launched a competitive high-yield savings account that pays you more when you commit to a routine savings schedule. In an environment where savings rates are expected to drop, the LevelUp Savings account's 5.30% annual percentage yield, or APY, is a breath of fresh air.

But there are strings attached. To qualify for this eye-popping rate, you’ll need to deposit $250 or more each month into your account. If you need motivation to boost your savings efforts, this may be just the push you need.

Before you jump on this offer, here's what you need to know to decide if a LevelUp Savings account is a good fit.

LendingClub LevelUp Savings account overview

LendingClub is a self-described "digital marketplace bank" that offers a variety of personal and commercial loan products along with retail banking services. Since 2007, the FDIC-member bank has served nearly 5 million customers.

The LevelUp Savings account is designed to encourage you to save more by rewarding you with a competitive LevelUp rate, currently 5.30% APY. To qualify for this rate, you must deposit at least $250 per month. 

The LevelUp rate applies automatically for the first two months, giving you an opportunity to establish your recurring deposit. After two statement cycles, your account will be evaluated monthly to determine whether the LevelUp rate will apply going forward. If not, the standard 4.80% APY rate applies -- which is also competitive at more than 10 times the national average.

You’ll have 24/7 access to your accounts via LendingClub’s website or mobile app.

Other features that make the LevelUp Savings account stand out include:

• No minimum balance to open or minimum balance requirements
• No monthly fees
• Unlimited ATM fee refunds
• FDIC-insured balances up to $250,000 per person
• All deposits from any source count toward the $250 minimum to qualify for the LevelUp rate
• Deposits can be made multiple times in one statement cycle to qualify for the LevelUp rate
• Cash deposits are accepted at select ATMs

How LendingClub's LevelUp Savings account compares to other HYSAs

You can earn a LevelUp rate of 5.30% APY with LendingClub’s high-yield savings account if you can maintain the minimum monthly deposit requirement. The standard rate, 4.80% APY, is still competitive if you can't meet this requirement 

However, there are other banks with competitive rates that don’t impose a monthly deposit requirement. They include:

Rates as of August 27, 2024.

The Federal Reserve will likely issue rate cuts soon, which can impact APYs. CNET can help you keep an eye on rates for high-yield savings accounts.

Factors to consider when choosing a high-yield savings account

Keep these factors in mind when deciding which new savings account to open:

• APY: Compare rates across multiple banks to determine which accounts offer the best return on your money. Most importantly, confirm whether the APY applies to the entire balance. Some accounts have tiered rate structures, and the highest APY is available only for balances above a certain amount.
• Fees: Avoid savings accounts that charge monthly fees. Fees will work against your savings goals and can add up to hundreds of dollars each year.
• Account features and perks: Compare the tools and services each bank offers. Savings accounts with savings helpers such as round-ups can help you reach your savings goals faster.
• Account access: The best rates on high-yield savings accounts often come from online-only banks, which don’t have physical branches and may not offer fee-free ATM access. If you prefer the option to visit a bank branch, consider a hybrid bank such as Capital One. It has a robust mobile banking app and physical locations. 
• Cash deposits: If you handle large amounts of cash, make sure the bank accepts cash deposits or that you’re comfortable working with a secondary bank that provides the features you need.