Latest responses to “Best Online Bank: Savings and Checking Accounts” Copyright 2012, MoneyBlueBook.com 402330 2009-11-25T15:36:07-08:00 Michael I agree with the above statement...sort of - Lending Club is nothing like a traditional bank and it's definitely not FDIC governmentaly insured. But I don't think one should immediately write them off. If you read the Lending Club prospectus and disclosure statements, their low default rates are pretty transparent. They are obviously not a bank - more of an investing club...and bank alternative Besides, I don't know how else one could earn a higher rate of return greater then the ridiculously low 1-2% that regular banks offer nowadays. 402390 2009-11-25T11:56:18-08:00 Flexo Not only are peer to ppeer lending offerings not FDIC insured, they operate nothing like savings accounts. You don't have access to the money while it's earning interest. These investments are not liquid and they carry risks. It is irresponsible to compare interest earned on investing in peer to peer lending with savings accounts interest rates. We all know bloggers earn income from these types of advertising posts when people click through but at least consider not misleading the reader into believing that peer to peer lending is simply a savings account with a better interest rate. 402400 2009-11-18T15:39:20-08:00 Investing 101 For Dummies This list is an excellent starting point for people looking to get the highest yield for their money while putting it in relatively safe investments. As for the affiliate links, as long as the blog owner is objective and has a sense of ethics, I don't think it takes anything away from the value of the post. 402370 2009-11-11T20:43:24-08:00 Raymond Hi Peter, As is the case with all personal finance blogs, bloggers such as myself do earn some income via the online advertising that we occasionally display on our sites. However, I always try to be as objective as possible and provide financial product suggestions to readers that I myself have personally experienced and would utilize myself. I welcome all comments concerning my reviews and recommendations. It's readers like yourself that help to fully flesh out and authenticate the details found on these types of editorial reviews. 402340 2009-11-11T16:09:57-08:00 Peter You should highlight to your readers how much affiliate income you get from doing these posts. 402360 2009-11-07T23:56:44-08:00 Raymond You're correct in stating that Lending Club is not FDIC insured and absolutely protected the way banks and credit unions are. However, if you stick with the highest A-rated offers through Lending Club, the default loss rate is quite low...at a mere 0.22% or so. Even the higher interest rate but slightly riskier B-rated loans have low default rates of 1.69%. If you truly want full government guarantee of your assets, stick with online bank accounts and CD rates. But if you're looking for higher rates of return on your money and are willing to absorb a slight bit of risk, Lending Club is worth looking into. Remember, the general rate of return of Lending Club assets are about 9.60%. The rate of return for even the best online bank savings accounts top out at 1.50% - 3.00%. You have to decide if this great interest rate for Lending Club is worth the slight but slim chance of loss. 402380 2009-11-07T22:37:56-08:00 RateNerd Are you certain that Lending Club is FDIC insured? There is no mention of it on their site. 402350 2009-11-07T15:18:35-08:00 J.D. Nice review and list of online banks. But to clarify, Lending Club, Prosper, and other P2P lending companies are not actual banks. They don't enjoy the same FDIC insurance guarantees that mainstream Internet banks get. Your money at Lending Club is not fully ensured against loss and there is a small chance of default/losing your money. However, based on my own experience with Lending Club as an investor, this chance of losing your money is quite slim, especially if you stick with top rated loans. I hope LC expands the program into more states. Currently my friends who live in states like Maryland can't qualify as Lending Club investors. The site is a good way to make more money beyond the lower rates at banks.