Live Oak Bank Review 2019

Live Oak Bank Logo

3.5/5

Live Oak Bank is a branchless, digital financial institution serving savers and small-business owners nationwide.

High APYs
No Monthly Fees
Top CD Rates

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Bankrate's overall ratings for financial institutions comprise weighted averages up to five stars of five main categories: customer service, savings accounts, checking accounts, money market accounts (MMAs) and certificate of deposit (CDs).

The Bankrate editorial team compiles publicly-available company data as well as information from the government organizations like the Federal Deposit Insurance Corp. for our review of each financial institution. App ratings are obtained from iTunes and Google Play. The interest rates, branch densities, fee amounts and other data was collected in fourth quarter 2018 and first quarter 2019.

When a financial firm offers more than one checking, savings or MMA accounts, Bankrate reviews the account with the highest APY. Each bank is evaluated based on the 12-month certificate of deposit (CD) it offers.

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About Live Oak Bank

Live Oak Bank was founded in 2008 and is headquartered in Wilmington, North Carolina. It offers high-yield deposit accounts and targets entrepreneurs in the market for a loan that will help them grow their small business. Though the bank originally focused on supporting professionals providing veterinary services, it now works with business owners across multiple industries, including agriculture, insurance and health care.

The bank is also known for its interest in technology and innovation. Live Oak prides itself on using technology to streamline the loan application and funding process. A subsidiary of its parent company funds companies developing solutions for the banking industry.

Forming a solid relationship with Live Oak Bank is worth considering if you’re a small-business owner looking for financing or a consumer ready to move your savings into a high-yield account. If you’re looking for a full-service online institution, however, you may be more satisfied with another bank.

 Pros

  • Offers CDs and a saving account with competitive rates.
  • Customers can manage external accounts from other banks through the Live Oak mobile app.
  • Provides loan solutions tailored to business owners in various sectors.
  • Offers basic banking features, including mobile check deposit, budgeting tools and account alerts.

 Cons

  • Product offerings are limited.
  • Customers don’t have access to a checking account.
  • Bank representatives aren’t available on weekends.
  • There’s no ATM access.
  • Money market accounts are no longer available.

Live Oak Bank Services

CDs Rating

4.6/5

Live Oak Bank offers traditional CDs across seven different terms ranging from six months to five years. According to the bank, accounts can be opened within minutes and managed through the mobile app. The minimum deposit is higher than it is at some online banks, but still relatively low. Early withdrawal penalties are fairly standard. For CDs maturing in less than 24 months, the fee is 90 days of simple interest on the amount withdrawn.

 Pros

  • Interest is compounded daily.
  • Competitive CD rates are available to consumers nationwide.
  • Account holders can have interest automatically disbursed to them every month.

 Cons

  • There are no special CDs available.
  • Not all standard CD terms are available.

Live Oak Bank CDs

3.00 % APY
5 YEAR CD
$2,500 MINIMUM DEPOSIT
2.95 % APY
4 YEAR CD
$2,500 MINIMUM DEPOSIT
2.90 % APY
3 YEAR CD
$2,500 MINIMUM DEPOSIT
2.85 % APY
2 YEAR CD
$2,500 MINIMUM DEPOSIT
2.80 % APY
1 YEAR CD
$2,500 MINIMUM DEPOSIT
2.80 % APY
18 MONTH CD
$2,500 MINIMUM DEPOSIT
2.45 % APY
6 MONTH CD
$2,500 MINIMUM DEPOSIT

CDs available from other banks

Goldman Sachs Bank USA Logo
2.70% APY
$500 MINIMUM DEPOSIT
Rising Bank  Logo
2.87% APY
$1,000 MINIMUM DEPOSIT
Citizens Access Logo
2.80% APY
$5,000 MINIMUM DEPOSIT
Savings Rating

5.0/5

Live Oak consistently offers a top-tier APY to customers with its Online Savings account. The account’s yield is 23 times higher than the national average. Though there are a few online accounts with higher APYs, this is one of the highest APYs around. The Live Oak Online Savings account has no minimum opening deposit requirement and customers with a balance of $0.01 or more earn interest. The Online Savings account also has no monthly account fee.

 Pros

  • The Online Savings account doesn’t have a monthly maintenance fee.
  • Very competitive APY.
  • No minimum balance requirements.
  • Interested is compounded daily.

 Cons

  • There are still a few banks that offer a higher APY.
  • No debit card available for the Online Savings Account.

Live Oak Bank Savings

2.30 % APY
Savings
$0
MINIMUM BALANCE FOR APY

Savings accounts available from other banks

Goldman Sachs Bank USA Logo
2.25% APY
$0 MINIMUM DEPOSIT
Vio Bank Logo
2.46% APY
$100 MINIMUM DEPOSIT
UFB Direct Logo
2.45% APY
$10,000 MINIMUM DEPOSIT
Bank Experience Rating

1.7/5

There are only a handful of users who have rated Live Oak Bank’s mobile banking app; however, by and large, the scores are favorable. The mobile banking app features include the basics, such as mobile deposit capture. More interestingly, the mobile banking app also lets you view all of your bank accounts — including non-Live Oak accounts. The ability to reach customer service agents via the phone, however, is restricted to weekdays. At this time, bank customers do not have access to ATMs. However, a representative for Live Oak Bank told Bankrate it plans to offer surcharge-free access to a nationwide network of ATMs as it broadens its products later this year.

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