Comments on: Why Lending Club is better than a savings account

By: Tyler

Tyler — Mon, 03 Sep 2007 02:34:37 +0000

Also noteworthy--and well publicized by Lending Club though not in
this blog entry--is that Lending Club investments are NOT FDIC
guaranteed, unlike savings accounts. Therefore, I would also note
that it is not only important to consider whether "you don't need
to use" it currently but whether you absolutely NEED it at all.
This is not anti-Lending Club but, rather, pro-diversification.

By: Maneesh Sethi

Maneesh Sethi — Sat, 01 Sep 2007 15:58:08 +0000

Hey Luke, I was trying to emphasize that Lending Club is for
lending out money you don't need. I said "Lending Club helps you
put that money to use by letting you lend the money you aren’t
using to someone else." The money you aren't using, meaning that
you don't need in the future. The liquidity difference does exist,
but the point still stands---if you have money you don't need to
use, you should invest it instead of leaving it in a savings
account. Thanks for commenting! -M

By: Luke Duff

Luke Duff — Fri, 31 Aug 2007 19:19:00 +0000

Isn't this slightly misrepresenting Lending Club? LC accounts have
nearly zero liquidity. I'm a happy Lending Club lender but I
wouldn't put my "dog might need an operation" money in it.