If you have more than $10,000 in your account then you have likely received an email from Lending Club promoting their new PRIME service. You may have also noticed a popup message on the main account screen. So what is this all about?
PRIME is a service provided by Lending Club that allows you to invest in an automated way. I started using Lending Club PRIME when I rolled over my wife’s IRA account back in early 2010. Back then PRIME accounts were very simple – you just decided on a target interest rate and Lending Club did the rest. It was a set it and forget it process. You can read my initial review of Lending Club PRIME here and also why I decided to take my accounts off PRIME.
A New and Improved Lending Club PRIME
A lot has changed since then. Lending Club still provides investors with an automated investing option but the new Lending Club PRIME has three key advantages over the old PRIME:
- PRIME can execute your own saved search for you – This is huge in my mind. I have some saved searches on my accounts that I run regularly but I have to login every single time to run them. Now, if I miss logging in for a while Lending Club can run one of these saved searches for me.
- It is not all or nothing – The original Lending Club PRIME was an all or nothing deal. You let Lending Club invest for you completely and if you made an investment they would take the account off PRIME. Now, you can have PRIME enabled and continue to invest manually while the automated investing continues to run.
- It is free, at least for now – PRIME accounts have had a 0.8% setup fee and through the end of December they are waiving that fee for new accounts. There have never been any ongoing fees for PRIME.