Automated Investing

automated investing cycle

Earning returns on returns—sounds pretty good, right? That's the effect of compounding. Learn about how automated investing can create a similar effect in your LendingClub Note portfolio.*

What is automated investing?

Automated investing is a feature investors can use to automate purchases of LendingClub Notes that match their LendingClub investment criteria. The goal of automated investing is to put your cash to work by auto-purchasing new Notes with any cash in your account, including the principal and interest you receive that correspond to borrowers' monthly loan payments. Reinvesting your returns may create a compounding-like effect to keep your capital growing. Other than aiming to deliver investment returns,  the purpose of this is to minimize the amount of money you have sitting  in cash, as cash not only has no return, it generally loses value over time when you factor in inflation.*

How does it work?

Since $25 is the minimum you can invest per Note, whenever you have a cash balance of $25 or more in your account, automated investing may place a Note order for you.

Your investment criteria

Automated investing will only purchase LendingClub Notes that correspond to the criteria you've selected, including filters, Note grades, Note terms, and the amount you choose to invest per Note. The more specific your investment criteria, the more time it may take the automated investing service to invest your capital.

A few things to know:
  • By default, automated investing prevents you from purchasing multiple Notes corresponding to the same loan unless you specify otherwise when setting your investment criteria.
  • Automated investing criteria only apply on a forward-looking basis. Consider this: Assume an investor holds only LC Notes corresponding to A and B grade loans but later sets their investment criteria to only purchase Notes corresponding to E grade loans. From that day forward, automated investing will only place orders for E grade Notes. However, the investor’s account will still contain the previously purchased LC Notes that correspond to A and B grade loans.
  • You can still place manual orders if you use automated investing.

You may want to review LendingClub’s historical inventory when determining your investment criteria.*

Turning automated investing on and off

You can turn automated investing on or off at any time. Simply toggle automated investing on or off on the Investment Strategy page in your account. If you turn automated investing off, know that it can take up to one business day for the change to take effect, during which time orders may continue to be placed for your account. Turning off automated investing will not cancel any outstanding orders that have been placed for your account.

Remember, the goal of automated investing is to keep your cash working for you. If you turn off automated investing, any payments of principal and interest will accumulate in your account until you reinvest or withdraw your cash. Cash sitting in your LendingClub account does not earn interest.

automated investing on your mobile
Click here to log in to your account and manage your automated investing settings, criteria, and filters.


Need additional assistance with automated investing? Our Investor Services team is here to help! Contact us at investing@lendingclub.com or 888-596-3159.