Banking » Reviews » Live Oak Bank Review 2024 – Online Savings, CDs & Small Business Loans
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Live Oak Bank Review 2024 – Online Savings, CDs & Small Business Loans

Live Oak Bank has expanded its reach across multiple investments and saving tools with a distinct focus on small businesses.
Author: Lorraine Smithills
Lorraine Smithills

Writer, Contributor

Experience

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
Interest Rates Last Update: June 3, 2024
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Lorraine Smithills
Lorraine Smithills

Writer, Contributor

Experience

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
Interest Rates Last Update: June 3, 2024

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

Live Oak Bank

live-oak-bank-logo
live-oak-bank-logo

Live Oak Bank

Fees

$0

Minimum Deposit

$0

Our Rating

4
4/5

APY Savings

4.40%

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:

When it comes to deposit and loan rates, the bank is almost heaven-sent. As of July 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.

Live Oak bank doesn't charge monthly maintenance fees, unless you carry less than $10 in your account for more than 24 months. 

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.

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.

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.

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-bank-logo
live-oak-bank-logo

Live Oak Savings Account

Fees

$0

Minimum Deposit

$0

APY Savings

4.40%

APY MMA

N/A

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. 

Top Savings Accounts From Our Partners

Chime Banking App

  • 2.00% APY on Chime Savings 
  • Build Credit History
  • No Monthly Fees

Quontic High Yield Savings

  • 4.50% APY on savings
  • Interest is compounded daily
  • No Monthly Service Fees

CIT Savings Connect 

  • 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. 

Top Offers From Our Partners

UpgradeLogo

Savings Rate: 5.21% APY
CIT-Bank-Logo
Savings Rate: Up to 5.00% APY
Quontic bank logo
Savings Rate: 4.50% APY

valley direct logo

Savings Rate: 4.75% APY

consumers credit union logo

CD Rate: 5.00% – 5.20% APY
Advertiser Disclosure
The product offers that appear on this site are from companies from which this website receives compensation.
Top Offers From Our Partners

UpgradeLogo

Savings Rate: 5.21% APY
CIT-Bank-Logo
Savings Rate: Up to 5.00% APY

live-oak-bank-logo

Savings Rate: 4.40% APY
Quontic bank logo
Savings Rate: 4.50% APY

valley direct logo

Savings Rate: 4.75% APY APY

consumers credit union logo

CD Rate: 5.00% – 5.20% APY
Advertiser Disclosure
We get compensated for these product offers

Live Oak Certificate Of Deposits (CDs)

live-oak-bank-logo
live-oak-bank-logo

Live Oak Certificate Of Deposits (CDs)

APY Savings

2.00% – 5.00%

Minimum Deposit

$2,500

Fees

$0

Term Range

3 months – 5 years

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

sofi logo
Chime
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+
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Fees:
No monthly fees No monthly fees and no overdraft fees. Plus get reimbursed for ATM fees with an active account 
Rewards:
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Up to 3.30% APY
to get the maximum rate (up to $50,000) you'll need monthly direct deposits of $1,500 (0.40% APY), 10 transaction on your debit card (+0.30% APY), average daily balance of $2,500 on Axos Invest Managed Portfolio (+1.00% APY), average daily balance of $2,500 on Axos Invest Self Directed Trading Account(+1.00% APY) and make full monthly payment on loans (mortgage, personal and auto) with Axos account (+0.60% APY).

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Advertiser Disclosure
The product offers that appear on this site are from companies from which this website receives compensation.
Top Offers From Our Partners

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Promotion:
Up to $400 Open a new, select Virtual Wallet product and receive $500/$2,000/$5,000 or more in qualifying monthly direct deposits within 60 days to earn a $100/$200/$400 bonus.
Subject to state availability
PNC Virtual Wallet ® is available in AL, AZ, CA, CO, DC, DE, FL, GA, IL, IN, KY, MD, MI, NC, NJ, NY, NM, OH, PA, SC, TX, VA, WI, and WV. Virtual Wallet ® is offered in the state of MO with the exception of the Greater Kansas City area. Product availability may vary based on where you open your account and the Zip code of your primary address.

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Promotion:
$300 New Chase checking customers enjoy a $300 bonus when you open a Chase Total Checking® account and make direct deposits totaling $500 or more within 90 days of coupon enrollment.. Expired on 10/16/2024
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Fees:
No monthly fees No monthly fees and no overdraft fees. Plus get reimbursed for ATM fees with an active account 
Rewards:
Up to 2% cash back Up to 2% cash back on common everyday expenses for active accounts with monthly $1,000 direct deposit, and up to 1% cash back for other purchases 
Promotion:
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Up to 3.30% APY
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Promotion:
Up to $2,500 You could earn $1,500 or $2,500 if you open a new, eligible HSBC Premier checking account from July 1, 2024 through November 22, 2024, and complete qualifying activities: • Get a $1,500 Cash Bonus: Add New Money of $100,000 to $249,999 in deposit and/or eligible investment accounts within 20 days of opening your new checking account and maintain the Qualifying Balance for 3 full consecutive months. • Get a $2,500 Cash Bonus: Add New Money of $250,000+ in deposit and/or eligible investment accounts within 20 days of opening your new checking account and maintain the Qualifying Balance for 3 full consecutive months. – Cash Bonus will be deposited into your new checking account within 8 weeks of meeting all the offer requirements
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Promotion:
$200 $200 cash bonus if you make direct deposits totaling $2000 or more within 90 days of account opening.
No Minimum Deposit
Free checking account, no minimum balance, check writing, two days early paycheck
Advertiser Disclosure
The product offers that appear on this site are from companies from which this website receives compensation.

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:

  • 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.

  • 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.

  • 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.

  • 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.

  •  

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 and CIT offer online-only savings accounts with several benefits – and some requirements. Here's our complete comparison.

Banking Reviews

Picture of Lorraine Smithills

Lorraine Smithills

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
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Savings Rate: 5.21% APY
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CD Rate: 5.00% – 5.20% APY
Advertiser Disclosure
We get compensated for these product offers
Top Offers From Our Partners

PNC bank logo

Promotion:
Up to $400 Open a new, select Virtual Wallet product and receive $500/$2,000/$5,000 or more in qualifying monthly direct deposits within 60 days to earn a $100/$200/$400 bonus.
Subject to state availability
PNC Virtual Wallet ® is available in AL, AZ, CA, CO, DC, DE, FL, GA, IL, IN, KY, MD, MI, NC, NJ, NY, NM, OH, PA, SC, TX, VA, WI, and WV. Virtual Wallet ® is offered in the state of MO with the exception of the Greater Kansas City area. Product availability may vary based on where you open your account and the Zip code of your primary address.

Chase_logo

Promotion:
$300 New Chase checking customers enjoy a $300 bonus when you open a Chase Total Checking® account and make direct deposits totaling $500 or more within 90 days of coupon enrollment.. Expired on 10/16/2024
Chase Overdraft Assist
With Chase Overdraft AssistSM, you won’t be charged an Overdraft Fee if you’re overdrawn by $50 or less at the end of the business day OR if you’re overdrawn by more than $50 and you bring your account balance to overdrawn by $50 or less at the end of the next business day

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Promotion:
$200 $200 cash bonus if you make direct deposits totaling $2000 or more within 90 days of account opening.
No Minimum Deposit
Free checking account, no minimum balance, check writing, two days early paycheck

UpgradeLogo

Fees:
No monthly fees No monthly fees and no overdraft fees. Plus get reimbursed for ATM fees with an active account 
Rewards:
Up to 2% cash back Up to 2% cash back on common everyday expenses for active accounts with monthly $1,000 direct deposit, and up to 1% cash back for other purchases 

Promotion:
$500 Use Promo Code “RC500” for a $500 bonus when you apply for a Rewards Checking account
Up to 3.30% APY
to get the maximum rate (up to $50,000) you’ll need monthly direct deposits of $1,500 (0.40% APY), 10 transaction on your debit card (+0.30% APY), average daily balance of $2,500 on Axos Invest Managed Portfolio (+1.00% APY), average daily balance of $2,500 on Axos Invest Self Directed Trading Account(+1.00% APY) and make full monthly payment on loans (mortgage, personal and auto) with Axos account (+0.60% APY).

penfed personal loan

APY on Daily Balances
0.15% APY on daily balances of less than $20,000 or 0.35% APY on daily balances of $20,000 up to $50,000
Get paid up to 2 days early
Set up direct deposits and get your paycheck up to 2 days early

Promotion:
Up to $2,500 You could earn $1,500 or $2,500 if you open a new, eligible HSBC Premier checking account from July 1, 2024 through November 22, 2024, and complete qualifying activities: • Get a $1,500 Cash Bonus: Add New Money of $100,000 to $249,999 in deposit and/or eligible investment accounts within 20 days of opening your new checking account and maintain the Qualifying Balance for 3 full consecutive months. • Get a $2,500 Cash Bonus: Add New Money of $250,000+ in deposit and/or eligible investment accounts within 20 days of opening your new checking account and maintain the Qualifying Balance for 3 full consecutive months. – Cash Bonus will be deposited into your new checking account within 8 weeks of meeting all the offer requirements
Wealth Products & Advice
Get access to wealth products, insights and advice from an HSBC Financial Professional through HSBC Securities (USA) Inc
Advertiser Disclosure
The product offers that appear on this site are from companies from which this website receives compensation.

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