Live Oak Bank Review 2020

Published January 2020 by Amanda Dixon

AT A GLANCE
3.5
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Bankrate Score

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High APYs

No monthly fees

top-CD-rates

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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    4.6
  • MORE HIGH-YIELD OPTIONS
    MORE HIGH-YIELD OPTIONS
    Citi

    Member FDIC

    Savings account

    1.85 % APY

    $ 0

    Min. balance for APY

    CIT Bank

    Member FDIC

    MMA

    1.80 % APY

    $ 100

    Min. balance for APY

    Goldman Sachs Bank USA

    Member FDIC

    Savings account

    1.70 % APY

    $ 0

    Min. balance for APY

    Overall

    3.5

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    Bankrate Score

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

    What we like

    • 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.

    What we don't

    • 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.

    Savings accounts

    5.0

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    Bankrate Score

    OTHER SAVINGS OFFERS YOU MAY LIKE
    Citi

    Member FDIC

    Savings account

    1.85 % APY

    $ 0

    Min. balance for APY

    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.

    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.

    • No debit card available for the Online Savings Account.

    CD rates

    4.6

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    Bankrate Score

    OTHER CD OFFERS YOU MAY LIKE
    Goldman Sachs Bank USA

    Member FDIC

    CD

    2.05 % APY

    1 yr

    Term

    $ 500

    Min. deposit

    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.

    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.

    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.

    Amanda Dixon Twitter Created with Sketch. @AMANDAADIXON

    Amanda Dixon Twitter Created with Sketch. @AMANDAADIXON

    Amanda Dixon is a senior reporter covering banking. Prior to joining Bankrate, she served as a writer and editor for SmartAsset, a New York-based fintech startup. Originally from the metro Atlanta area, she's a University of Georgia alum. She enjoys providing an inside look into what banks and credit unions are up to and offering tips and tricks to help consumers save money and build wealth at every stage of their financial lives. Follow her on Twitter: @amandaadixon.