📌 Update August 2022 – Live Oak Bank now has one of the most competitive 6 and 12 month CD rates on the market at 2.50% and 2.75% APY, respectively. Their longer term CDs remain flat at 2.50% APY. See all of their CD rates below.
Live Oak Bank based out of Wilmington, North Carolina is a digital, cloud-based bank that has no branches or ATMs. Their primary focus is on small business banking and their mission is to be America’s best small business bank. They’ve made considerable ground on this front as they were the leading SBA and USDA lender by volume in 2019. On top of that Live Oak Bank is still relatively new – being one of the last banks to get a charter prior to the recession of 2008.
Although their focus is on small business, Live Oak Bank offers its products and services to both personal and business customers in all 50 states.
Today, on the personal side of their operation, they have several noteworthy deposit accounts that are FDIC insured and come with high yields compared to the current national average(s).
If you’re in the market for an FDIC-insured savings account or certificate of deposit you may want to check out Live Oak Bank’s current CD rates and online savings account offer. Please note that Live Oak Bank does not offer IRA CDs at this time.
Our full review of these products continue below.
Live Oak Bank CD Rates + Account Details
Live Oak Bank currently has 7 standard term certificates of deposit to choose from. The terms range from 6 months to 5 years and still provide ascending rates (albeit not by much). CDs sold at Live Oak Bank are federally insured by the FDIC up to $250,000 per depositor. Live Oak Bank CDs have a minimum deposit requirement of $2,500 and a maximum deposit allowance of $250,000.
Interest is compounded daily and credited monthly. A nice feature of Live Oak Bank CDs is that they let you transfer your interest to an external account every month if you so choose. This is great for individuals or couples living off of the interest as income. The default option, however, is for the interest to simply go back into the CD account for further compounding.
To give the offers above some context, the current national average for a 12 month CD and a 5 year CD sit at roughly 0.46% and 0.64% APY, respectively, according to recent FDIC data.
Opening a Deposit Account
Opening a deposit with Live Oak Bank is pretty straight forward and can be done online in minutes. To start you will click on the “get started” button in the upper right. From there you will begin the application process.
You should have all of your personal information handy when starting this process. Necessary information may include:
- Email Address (must be unique for each account holder)
- Mobile Phone Number
- Social Security Number
- They may request additional documentation for verification purposes
You will need to also have the routing and bank account number of the bank/account you’ll be transferring the funds from.
Early Withdrawal Fees
As with most bank CDs, you will incur a fee if you withdraw your funds prior to the maturity date. The fees are based on the term length of your deposit.
|24 months or less||90 days simple interest|
|24 months or greater||180 days simple interest|
Live Oak Bank CDs come with a standard 10 day grace period. During this time you can withdraw or add funds to your deposit penalty free. If nothing is done during this period, a new CD with the same terms and the current rate will be opened with your funds. Live Oak Bank will notify you prior to your grace period but you should have your own reminders set as well.
Live Oak Bank Online Savings Account
Live Oak Bank has one of the most competitive online savings accounts on the market currently. The account comes with no monthly maintenance fees, no minimum balance requirements and has a minimum deposit requirement of just $10.00 to open the account.
Please note that If an account has a balance less than $10.01 and no activity for 24 consecutive months (“no activity” is defined as no withdrawals, deposits, contact with a Customer Success Manager, nor customer log-ins to the online banking website), a dormant account fee will be assessed, and the account will be closed. The amount of the fee will be the account balance or $10.00, whichever is less.
Live Oak Bank Online Savings Account Rate
To put this offer in perspective, the current national average for a savings account sits at a paltry 0.13% APY currently.
You’ll need the same personal information you would for a CD to open a Live Oak Bank online savings account. Funding the account can be done in 1 of 4 ways:
- You can transfer funds electronically via ACH. To do this, log on to the Live Oak Bank Portal and choose the ‘Transfer Funds’ option. You may transfer funds between Live Oak accounts and linked external accounts. Please allow 1-2 business days for the process to complete.
- You can mail a physical check to their HQ at:
Live Oak Bank
1757 Tiburon Drive
Wilmington, NC 28403
- Deposit a check with the Live Oak Bank Mobile App. The app is available for both IOS and android phones. Just keep in mind the mobile deposit cutoff time is 4:00 p.m. ET. Any deposits received after 4:00 p.m. ET will be processed on the following business day.
- Wire funds into your account. Log on to the Live Oak Bank Portal for wire instructions. You must have an open account to deposit by wire. A new account cannot be opened by wire.
There might be some additional fees you’ll want to look out for depending on what kind of actions you intend to take with this account. Below is a list of possible fees you may run into.
Live Oak Bank Fee Schedule
|Fee Description||Fee Amount|
|Monthly Account Fee||$0|
|Fee for each transaction after the 6 permitted by Federal regulation D||$10 for ea. after the sixth in a monthly statement cycle.|
|Legal Actions||$50 minimum|