For a limited time only, Lending Club is waiving their service fee on certain loans for the life of the loan. This is an awesome opportunity for lenders to make a little extra money on their investments!
Each month, I go into my lending club account and browse through the notes to see what investments I might find. The other day, I was browsing through some potential borrowers when I noticed this:
On all the loans that were over $20,000, there was the little green no fee tag.
I’ve always liked lending club ever since I started investing with them. I liked the idea of being able to invest directly with borrowers, but at the same time have the buffer of a funded company servicing the loan to ensure that my investments didn’t default.
Currently, I earn over 17% annualized return on my investments, so I’m happy to pay the 1% service fee on the loans. Overall, I’m hard pressed to think of any other investment that would give me even close to that kind of return on my investment.
Now that they are waiving their service fee on quite a few loans, I’m really excited to start earning a little bit more. It means that I will be receiving the entirety of the interest paid on the loan.
If you don’t yet have a lending club account, I highly recommend getting one now.
Here are a few of the benefits of Lending club:
- no minimum deposit required
- invest as little as $25 on a loan
- great returns on your investments
- deposit bonus of up to 2% on your initial deposit
- bypass the big bank to invest directly with the borrower
Overall, you’ll find a great number of benefits to investing with lending club. I’ve been investing with them for a few years now and as you can see, I’m thrilled with the returns that I’m getting on my investments there. It beats out the stock market, bonds, savings accounts, you name it. The other thing that I do is that I compound my interest by reinvesting the money that I earn from the loans back into another investment.
The best thing is that you can start with a small deposit to get familiar with the system. There’s no minimum deposit required, although the minimum amount to invest in a note is $25. When I started, I just deposited $100. I invested in 4 notes to see how they would do. As I became more familiar with their system, I deposited a little more money each month.
This is the first time that I’ve seen them run a promotion to waive their service fee. It’s for the life of the loan, so it’s an awesome opportunity that will pay off for a few years. If you’re not already investing with Lending Club, I’d recommend opening an account now, while the promotion is still running.
It’s free to open an account.