Live Oak Bank is an online-only bank founded in 2008. It’s a subsidiary of Live Oak Bancshares, Inc., and is headquartered in Wilmington, North Carolina. While it offers a savings account and certificates of deposit (CDs) for individuals, it’s mainly known for being a small business bank. It currently services the highest dollar volume of Small Business Administration (SBA) loans in the country.
All rates and fees are current as of June 27, 2024, and are subject to change.
Live Oak Bank
Savings accounts: | Open with as little as $0 |
CD rates: | Earn up to 5.00% annual percentage yield (APY) |
Live Oak Bank rates and products
For individual consumers, Live Oak Bank offers a high-yield savings account as well as personal CDs. Both offer above-average APYs that can help your money grow faster.
Savings accounts
The Live Oak Bank’s personal savings account currently has a 4.40% APY—slightly less than rates offered by the best high-yield savings accounts. It also has no monthly maintenance fees or minimum balance requirements
As far as high-interest savings accounts go, this Live Oak option is above average. One of its selling points is the lack of a monthly transaction limit. This means you can make as many withdrawals as you like. Many other banks limit you to six per month. The account also has a high transfer limit of up to $250,000 per day.
One drawback is that this account does not come with checks or a debit card. However, you can make automated clearing house (ACH) transfers.
You’ll receive interest as long as you have a balance of at least a penny. The bank credits all earned interest to your account on the last business day of the month.
Live Oak Bank savings rates compared to current top rates*
While Live Oak Bank is a great option, some institutions offer higher interest rates. Compare the rates above to this list of competitors:
Certificates of deposit
While Live Oak Bank may not offer the best CD rates on the market, its accounts are certainly higher than what the average bank offers.
A CD is a type of savings account where you deposit your money for a set period of time in exchange for a fixed interest rate. Live Oak has CD terms ranging from three months to five years. However, to score the best APY of 5.00%, you’ll need to commit to a one-year term.
All Live Oak CDs require a $2,500 minimum deposit, which is a bit steep. They also have a maximum limit of $250,000.
If you prefer, you can have the CD’s interest paid automatically into an account of your choosing every month. But to get the advertised APY, you’ll want to keep it in the CD account.
Removing your principal before the term is over will result in an early withdrawal penalty of up to 180 days of interest. To make your early withdrawal, you’ll need to call customer support.
Other services Live Oak Bank offers
Live Oak doesn’t offer any other services for individuals. However, if you operate a business, you can take advantage of several additional offerings:
- Business loans: Live Oak offers four types of business loans, including SBA loans, United States Department of Agriculture (USDA) loans, commercial loans, and its signature Live Oak Express loans of $500,000 or less.
- Business checking: Businesses can choose from three checking accounts with waivable monthly maintenance fees and a debit card.
- Business savings: The Live Oak business savings account has a 4.00% APY with no minimum balance requirements.
- Business CDs: Business CDs range from 2.00% to 5.00% APY, and you’ll get the best deal with a one-year term.
Online banking
Live Oak is an entirely online bank, so you’ll do all of your banking from its website or app. The bank makes it easy to open an account online and view relevant terms and disclosures before you provide your personal information. Still, it does lack some features other digital banks have, such as online chat support and online account tutorials, which would make using its site easier.
The Live Oak Bank platform and customer support
In addition to its online platform, Live Oak Bank offers apps for Apple and Android users. They’re rated 2.6 stars and 3.2 stars, respectively. The app allows you to make transfers, deposit multiple checks at one time, and see a record of your account transactions.
If you need help from a Live Oak Bank customer support agent, your only option is to place a call. Luckily, representatives are available Monday through Friday from 8 a.m. to 8 p.m. Eastern time. However, there is no weekend customer service, email, or chat support.
Is Live Oak Bank secure?
Live Oak Bank does not appear to have had any major data breaches or security hiccups in the past. It uses antivirus and antimalware tools, firewalls, secure sockets layer (SSL) encryption, multifactor authentication (MFA), and fraud and threat management analytics to safeguard customers’ information. It’s also partnered with Orca Security to help comply with data privacy and security mandates.
Live Oak Bank user reviews
On Trustpilot, Live Oak has a 4.4-star rating from customers. Most customers praise the support they receive from the bank, saying they can resolve their issues with the first person they speak with. Support is always responsive and helpful, and many customers say they have no complaints.
Some one-star reviews include complaints about an increase in interest rates. Others mention problems locking out of their accounts or making international wire transfers.
Compare Live Oak Bank alternatives
Is Live Oak Bank right for you?
Live Oak Bank could be a good solution for the consumer looking for a bank that can handle both personal and business accounts. Its personal savings and CD accounts offer decent APYs, and its online account access is simple and easy to use. However, the lack of a checking account and no brick-and-mortar locations could be a breaking point for a customer who wants an all-in-one, in-person solution.
Frequently asked questions
Is Live Oak Bank a real bank?
Live Oak Bank is a real bank headquartered in Wilmington, North Carolina. Its parent company is Live Oak Bancshares, Inc.
Who owns Live Oak Bank?
Live Oak Bank is a publicly traded company on the New York Stock Exchange (LOB), so it doesn’t have an owner. However, its chief executive officer and founder is James S. Mahan III, and its president is William C. Losch III.
Does Live Oak Bank have Federal Deposit Insurance Corp. (FDIC) coverage?
Yes, Live Oak Bank carries the standard $250,000 in FDIC coverage per depositor for each account ownership category. It also has up to $10 million in FDIC insurance on business deposits through its cash sweep program.
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