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Compare the features of Betterment vs Lendingclub before investing next time

Investment is one of the most important aspects of living in the current time. The proven way of growing money is by investing this money into various funds and stocks. Investment is also very crucial for businesses. As a matter of fact, banks are not the only way to invest money into good schemes. But there are many investment firms too. These firms provide a good opportunity for investing money and putting this money into good use. However, choosing a good fintech company to make a good investment decision. We all have been in this confusion at some point in time. In this article, we will discuss and compare Betterment vs Lendingclub.

As a matter of fact, Betterment and LendingClub are two well-known fintech companies that have been helping individuals to make good investing choices. While both of these are quite similar, however, there are some differences too them. These small differences make these not only stand out but a better choice for different individuals. So, before comparing Betterment vs Lendingclub, let us get some information about these two fintech firms.

Betterment

Betterment is a very popular financial advisory firm. It is an American company. Betterment is known for providing cash management services and Robo advising services. These are a key pillar of Betterment that makes it a good fintech company. This company is a well-known registered broker-dealer and registered investment advising platform/ advisor. Its primary service is an automated goal aimed to invest. This company provides tax-advantaged and taxable investment accounts to its customers. Knowing the benefits or features of Betterment is important before we go ahead and compare Betterment vs Lendingclub.

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Features of Betterment

• You can manage your money efficiently with Betterment. This happens with guided investing, cash management, and retirement planning. You can be carefree with your money with Betterment.
• Betterment guides you with risk levels, goal settings, portfolio options, and saving features.
• With Betterment, you can invest in diversified fields. You can save money, move money, and withdraw at any time.
• There is only one fee that you will have to pay. It is the annual fee of 0.25% which you will have to pay.
• Betterment takes care of the additional needs of people. It helps you save on additional extra taxes. In this way, you can make more money to your home.
• It also takes care of the social values of individuals and helps them in making responsible investments.
• With Betterment, you have more control over your finances. You can manage and track your financial life anytime in one place.

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LendingClub

LendingClub is a well-known peer-to-peer credit lending company. The headquarters of LendingClub is situated in San Francisco. As a matter of fact, it was the first-ever peer-to-peer lender. It offers its services as securities and loan trading. At one point in time, it was identified as the largest peer-to-peer lending firm. Knowing the benefits or features of LendingClub is important before we go ahead and compare Betterment vs Lendingclub.

Features of Lending Club

• With LendingClub, you can get unsecured personal loans. These are usually between $1000 to $40000. The period of the loan is about three years.
• The investors have the benefit of browsing and searching loan listings available on the LendingClub website. They can make a better and informed selection of loans based on information about the borrower, loan grade, amount of loan, and purpose of the loan.
• The investors are able to make money on the loan interest that they earn from the loans. Whereas, LendingClub earns by taking origination fees from the borrowers and service fees from the investors.

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Compare Betterment vs Lendingclub

So, by now we have a piece of sound information on the features of Betterment and LendingClub. These features will help in making a good choice. So, let us go ahead and compare Betterment vs Lendingclub.

• Both LendingClub and Betterment are financial firms that help people to invest and borrow money. They help people to make better choices when saving and investing money.
• LendingClub is a more personalized fintech firm. This is due to the peer to peer service. Here, borrowers and investors can interact directly without much involvement of any mediator. Also, it uses technology to help the investor to get higher returns.
• Betterment uses technology tools. These tools help an individual to keep a track of all the money related decisions they make. They use Robo analysis to make better decisions for the people. It helps people by making goal oriented portfolios.
• On Betterment, you can make trust accounts, taxable accounts, and SEP, and Rollover IRAs account. Whereas on LendingClub you can again make all the above types of accounts including accounts for minors, corporate accounts, etc.
• In order to open an account on both Betterment and LendingClub. You will not have to worry about any minimum fee requirements. So, you can start your new account at zero money investment.
• Betterment is available in all the states of America. However, LendingClub is not available in some states of America. So, always take a quick check to know if LendingClub is available or not.

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Wrapping Up

So, if you are looking to invest money and make more gains or borrow money at least interest then you might want to consider LendingClub. However, if you are more concerned about your taxes and investment, then consider going with Betterment.

Published On : January 10, 2022 by: Manisha Sharma/Category(s) : Banking & Finance