Live Oak Bank
Fees
Minimum Deposit
Our Rating
APY Savings
Live Oak is one of the country's popular banks, having begun in Wilmington, North Carolina, in 2008 – which remains its only physical branch to date. Today, they are a nationwide bank in terms of reach and are the 246th bank in terms of size in the United States.
The bank offers competitive deposit rates and pays higher interest than its competitors. Because they are practically an online bank, they don’t have the expenses of an extensive banking network. This enables them to give out an above-average APY to their depositors.
The bank is digitally-focused – which, to them, means banking is available only through an online and mobile app. Their mobile app can let you see even your non-Live Oak account. Currently, customers have no ATM access, but the bank reports that they are working on it.
Customers can contact their help desk by phone only Monday to Friday during office hours. Or they can communicate by leaving a message on the bank’s website.
- High APY on savings account and CDs
- No monthly maintenance fees
- Digital Experience
- Limited Customer Service Access
- No debit card
- No ATM access
Live Oak Bank Review
Live Oak Bank Pros & Cons
Like any other bank, Live Oak has its own strengths and weaknesses. Here are the main benefits and drawbacks you should know before applying:
- High Rates
When it comes to deposit and loan rates, the bank is almost heaven-sent. As of September 2024, you can get 4.40% APY with Live Oak savings account.
The strict qualification process is an incentive to responsible business owners – manage your business well and you can get low-cost financing.
- No monthly maintenance fees
Live Oak bank doesn't charge monthly maintenance fees, unless you carry less than $10 in your account for more than 24 months.Â
- Technology
The bank uses technology accordingly, especially in loan processing. A shorter turnaround time means customers get the benefits of the loan products earlier. For small businesses, the faster they can get help, the bigger the chance of the business making it.
The bank app is also noteworthy. Being an online bank, everything rises and falls because of the app. After being in the business for some time, the bank’s tech team has already eliminated most of the bugs.
- Limited Customer Service Access
This is a bank with no physical branch and is proud of its level of technology.
Customers who open online accounts expect everything to be available 24/7. This includes access to a help desk that can assist them at any time and any day of the week.
- No debit card
Since Live Oak Bank is designed for customers searching for deposit accounts and not offering a checking account, so debit cards cannot be used to make transactions.
- No ATM access
Live Oak is an online-only bank institution; there are no physical locations where you can access your money.
Savings Account
Live Oak Savings Account
Live Oak Savings Account
Fees
Minimum Deposit
APY Savings
APY MMA
In the competitive world of deposit rates, Live Oak consistently lands among the bunch near the top. They don’t offer the highest rate in the market, but they’re better than good.
Their savings account has no minimum balance and no monthly fee. Even if you only have $1.00 in your account, it’s still good enough to earn interest. Even better, the bank compounds interest daily.
This is a straight online savings account that you can access through a mobile app. The app works with non-Live Oak Bank accounts, so you don’t need another app for your accounts in other banks. However, they won’t give you a checkbook or an ATM for this account.
Although you won’t pay any monthly fee, there’s a whole range of fees for other transactions or services.Â
Top Savings Accounts From Our Partners
Quontic High Yield Savings
- 4.50% APY on savings
- Interest is compounded daily
- No Monthly Service Fees
CIT Savings ConnectÂ
- Up to 5.00% APY on savings
- No monthly service fees.
- Zelle, Samsung & Apple Pay
Advertiser Disclosure
The product offers that appear on this site are from companies from which this website receives compensation.Â
Top Offers From Our Partners
Top Offers From Our Partners
Live Oak Certificate Of Deposits (CDs)
Live Oak Certificate Of Deposits (CDs)
APY Savings
Minimum Deposit
Fees
Term Range
This product is the digital version of the traditional CD – the terms and conditions are standard except that you manage it through an app. Opening an account only takes a few minutes online.
Their opening deposit is higher than other online banks but you will find that it is still a bit low. Customers can choose terms that run from 6 months, 1 year, 18 months to two to five years. Interest goes up as the term goes longer. The bank gives a higher APY than many banks due to the monthly compounding of interest.
Deposits are eligible for FDIC coverage to the maximum that the law allows. Customers have the option to get their interest monthly. There is only one kind of CD available so those looking for special CDs would have to look for them elsewhere. Here are the basic requirements:
- Maximum of $250,000 per account
- Interest payable monthly
- Early withdrawal penalty
Bottom Line: Is Live Oak Bank Worth It?
From what we’ve seen, Live Oak wants to focus more on loans than deposits. If you’re a small business owner who needs low-cost financing, you’d find that Live Oak can help you in this area better than other lenders.
But if you have a need for financing and at the same time, other bank products and services, this may not be a good fit. Having your loan account in one bank and your deposit accounts in another bank is not always the best practice. It will be more convenient to find a bank that can serve both your financing and deposit needs.
Online Banks For Starters - Alternatives
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|---|---|---|---|
APY Savings
The annual percentage yield (APY) is a percentage that represents the amount of money or interest earned on your savings account over the course of a year. The APY factored in compound interest. A savings calculator can help you quickly determine how much you'll earn with a given APY.
| up to 4.60%
| 2.00%
| 3.00% – 5.00% |
Checking Account Fee
The monthly fee on checking account
| $0 | $0 | $0 |
Checking Minimum Deposit | $0 | $0 | $0 |
Mobile App Rating | 4.8/5 on iOS, 4.2/5 on Android | 4.8/5 on iOS, 4.6/5 on Android | 4.7/5 on iOS, 4.5/5 on Android |
BBB Rating | A+ | F
| A+ |
Top Offers From Our Partners
Top Offers From Our Partners
How We Rate And Review Banks: Our Methodology
The Smart Investor team extensively reviewed hundreds of banks and credit unions. We assessed them based on four main categories, each with specific features:
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Diversity of Products and Their Attractiveness (40%): We extensively analyzed the breadth and appeal of each bank's product offerings, including savings accounts, checking accounts, loans, investment options, and more. Higher ratings were assigned to banks with a diverse range of products that are attractive in terms of interest rates, fees, terms, and additional features. This category provides insights into the variety and value of the bank's offerings, crucial for meeting customers' diverse financial needs.
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Account Features (30%): This category delves into the features and benefits accompanying each bank's accounts. We scrutinized factors such as promotions, deposit and withdrawal options, ATM accessibility, online and mobile banking functionalities, as well as additional perks like overdraft protection and rewards programs. Banks offering comprehensive and convenient features received higher ratings, reflecting the overall value of their accounts to customers.
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Customer Experience (20%): A positive customer experience is paramount in banking, so we evaluated each bank's performance in this area. This included assessing the ease of account opening, quality of customer service, availability of support channels, and overall user satisfaction. Ratings were based on factors such as responsiveness, efficiency, and the bank's commitment to meeting customer needs, ensuring a seamless and satisfactory banking experience.
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Bank Reputation (10%): The reputation of a bank is a critical consideration for customers. We examined factors such as financial stability, regulatory compliance, and public perception to determine each institution's overall trustworthiness and reliability. Higher ratings were awarded to banks with strong reputations, reflecting their credibility and ability to inspire confidence among customers.
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By considering these categories, individuals can make informed decisions that align with their financial needs and preferences, ensuring they choose a bank that offers competitive products, excellent features, a positive customer experience, and a solid reputation.
Compare Live Oak Bank
Live Oak Personal Savings vs CIT Bank Platinum Savings
Live Oak and CIT offer online-only savings accounts with several benefits – and some requirements. Here's our complete comparison.
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