1. Open an account and transfer funds.
To begin investing, you must open an account at lendingclub.com. Whether you want to invest as an individual, a corporation, on behalf of a minor, or through a joint or trust account, we offer an account type to fit your needs.
To open a self-directed investment account, there is a required minimum initial deposit of at least $1,000. Once an account is funded, there is a $25 minimum investment per LendingClub Note. This account minimum creates an opportunity for a better investment experience. With $1,000, investors can purchase up to 40 Notes in $25 increments, which can diversify their portfolios across 40 different borrowers' loans. LendingClub investors with more diversified accounts have been more likely to experience positive returns1 and lower volatility than investors with more concentrated holdings. Your investment is more diversified when you purchase Notes corresponding to different borrower loans. Learn more about the benefits of diversification.
Once you've read the requirements to become an investor, click here to open a taxable or retirement account. Transferring money to your LendingClub account is easy, simply link your bank account transfer the amount you want to invest by ACH, wire, or check.
2. Build your portfolio.
Instead of investing in an entire loan, you can invest in pieces of loans in $25 increments. When you invest in a piece of a loan, LendingClub will issue you a Note in the amount of your investment with a stated interest rate. Investors may choose to spread their investment across hundreds or even thousands of loans in order to create a diversified portfolio. Learn more about what LendingClub is offering as an investment.
Using loan grades or other selection criteria, you can balance the risks and returns of your investments and build a portfolio that suits your goals. In addition to loan grade, you can choose the term length (3 or 5 years), loan purpose, borrower location, and any other available criteria.
There are several methods for building your portfolio. You may use the Browse Loans feature to manually review and select loans currently available on the platform and build your portfolio Note by Note. You may also qualify to use LendingClub’s Automated Investing service, an automated investing tool driven by investment criteria that you select. You can change your investment criteria and pause or cancel Automated Investing at any time.
3. Receive monthly payments of principal and interest.
LendingClub makes monthly principal and interest payments to investors as borrowers make payments on their loans. Your portion of each borrower payment net of LendingClub’s service fee is automatically credited to your account as it is received by LendingClub. Accounts that hold multiple Notes may receive multiple borrower payments on any given day.
4. Reinvest or withdraw funds.
It is easy to reinvest the cash you receive from monthly payments using Automated Investing or by manually placing orders for new Notes.
You may withdraw your available cash at any time by scheduling a transfer to your bank account.
The information presented here is for informational purposes only and is not intended to be investment advice, guidance, or a guarantee of the performance of any Note or portfolio.
This information is not intended to be investment advice. Historical performance is not a guarantee of future results. Actual results may differ materially from historical data. LendingClub Notes are not guaranteed or insured, and investors may lose some or all of the principal invested. Individual portfolio results may be impacted by, among other things, the size and diversity of the portfolio, exposure to any single Note, Borrower, or group of Notes or Borrowers, as well as macroeconomic conditions. LendingClub Notes are offered by prospectus filed with the SEC.
1As of September 30, 2017. Based on adjusted net annualized return (Adjusted NAR) of current retail investors with a portfolio containing 100+ Notes of only grades A through E (i.e. no F or G grade Notes), none of which have been purchased or sold on the Folio Investing Note Trading Platform* and the portfolio has a weighted average age of at least 12 months (weighted based on the dollar value of each Note relative to the total dollar value of the portfolio, where the age of each Note is measured as of the purchase date of such Note). Adjusted NAR is calculated using the formula described here. This information is not intended to be investment advice. Historical performance is not a guarantee of future results. Actual results may differ materially from historical data. LendingClub Notes are not guaranteed or insured, and investors may lose some or all of the principal invested. Individual portfolio results may be impacted by, among other things, the size and diversity of the portfolio, exposure to any single Note, Borrower, or group of Notes or Borrowers, as well as macroeconomic conditions. *Folio Investments, Inc. ("Folio Investing") is a registered broker-dealer and member of FINRA and SIPC and operates the Note Trading Platform. Folio Investing is based in McLean, VA and is not affiliated with LendingClub. Folio Investing has no role in the original issuance of the Notes and is not responsible for and does not approve, endorse, review, recommend or guarantee the Notes or the accuracy, reliability, or completeness of any data or information about the Notes. See the Important Disclosures page for additional important information. More information about Folio Investing is available at www.folioinvesting.com.