Live Oak Bank Review 2020

Published March 2020 by Mary Wisniewski

AT A GLANCE
4.8

Bankrate Score

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High APYs

No monthly fees

Top CD rates

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.

  • Savings
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    5.0
  • CDs
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    4.5
  • MORE HIGH-YIELD OPTIONS
    MORE HIGH-YIELD OPTIONS
    Goldman Sachs Bank USA

    Member FDIC

    Savings account

    0.60 % APY

    $ 0

    Min. balance for APY

    Wealthfront

    Member FDIC

    Checking account

    0.35 % APY

    $ 1

    To open

    $ 0

    To avoid fees

    Capital One

    Member FDIC

    Checking account

    0.10 % APY

    $ 1

    To open

    $ 0

    To avoid fees

    Overall

    4.8

    Bankrate Score

    Live Oak Bank offers online savings accounts and CDs to savers nationwide.

    What we like

    • Offers CDs and a saving account with competitive rates.

    • No minimum balance requirements for its savings account.

    • Customers can manage external accounts from other banks through the Live Oak mobile app.

    What we don't

    • Product offerings are limited.

    • You won't have access to branches.

    Savings accounts

    5.0

    Bankrate Score

    OTHER SAVINGS OFFERS YOU MAY LIKE
    Goldman Sachs Bank USA

    Member FDIC

    Savings account

    0.60 % APY

    $ 0

    Min. balance for APY

    Live Oak consistently offers a top-tier APY to customers with its Online Savings account. While you can find a few online accounts with higher payouts, this account offers 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.

    What we like

    • The Online Savings account doesn’t have a monthly maintenance fee.

    • Very competitive APY.

    • No minimum balance requirements.

    • Interested is compounded daily.

    What we don't

    • There are still a few banks that offer a higher APY.

    CD rates

    4.5

    Bankrate Score

    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.

    What we like

    • Interest is compounded daily.

    • Competitive CD rates are available to consumers nationwide.

    • Account holders can have interest automatically disbursed to them every month.

    What we don't

    • There are no special CDs available.

    • Not all standard CD terms are available.

    Bank experience

    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.

    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.

    Mary Wisniewski Twitter Created with Sketch. @MARYMWISNIEWSKI

    Mary Wisniewski Twitter Created with Sketch. @MARYMWISNIEWSKI

    Mary Wisniewski is a banking editor for Bankrate and occasionally writes on a variety of fintech and banking subjects. Previously, she covered fintech for American Banker and edited op-eds for the publication's BankThink section. She was also a blogger and editor at Bank Innovation and served as a fashion editor for National Jeweler, where she reported on fashion shows and jewelry news. Mary grew up in the Michigan suburbs and now lives in Los Angeles with a maltipoo, a record player and an espresso machine.