Live Oak Bank CDs
APY Range
Minimum Deposit
Terms
Fees
Live Oak Bank CDs
APY Range
Minimum Deposit
Terms
Fees
Live Oak Bank CD Rates
The Live Oak Bank CD rates vary according to the term, with the highest rates currently offered for six month and one year CDs.
However, even the rates for CDs longer than one year are still quite competitive. The current rates vary from 2.00% – 5.00% APY.
CD Term | APY |
|---|---|
6 Months | 4.80% |
12 Months | 5.00% |
18 Months | 2.00% |
24 Months | 2.00% |
36 Months | 2.00% |
48 Months | 2.00% |
60 Months | 2.00% |
How Live Oak Bank CDs Work
Live Oak Bank CDs are available in a variety of terms from six months to five years, allowing you to lock in your rate for the entire term. There are no monthly maintenance fees to worry about and your interest can be disbursed monthly automatically.
There is a minimum deposit requirement of $2,500 regardless of the CD term and upon maturity, the CD will auto renew, but there is a 10 day grace period. During this time, you can withdraw some or all of your funds, make changes or close the account. If you do nothing, the CD will renew for the same term. So, if you have a one year CD, it will auto renew for another one year.
However, if you need access to your funds before your CD matures, you will incur an early withdrawal penalty. This is calculated according to the original CD term. For CDs with a term of less than 24 months, you’ll incur a 90 day interest penalty, but this increases to 180 days for CDs with a longer term.
CD Term | Early Withdrawal Penalty |
|---|---|
3 Months | 90 days of interest |
6 Months | 90 days of interest |
9 Months | 90 days of interest |
12 Months | 90 days of interest |
18 Months | 90 days of interest |
24 Months | 180 days of interest |
36 Months | 180 days of interest |
48 Months | 180 days of interest |
60 Months | 180 days of interest |
Are Live Oak Bank CD Rates Competitive Compared to Other Banks?
The current national CD rate for 1 year in the U.S is 1.68%. This means that even the lowest Live Oak Bank CD rates are highly competitive. When comparing Live Oak Bank with other banks, Live Oak Bank comes out ahead when we’re looking at most traditional banks. Since Live Oak Bank has no branches, it can forgo the expense of maintaining a branch network, which is passed on to its customers.
When comparing Live Oak Bank with other online banks, the Live Oak Bank CD rates do stand up favorably to comparison, particularly the six month and one year CDs. While it may be possible to get higher rates with other online banks for 2 years CD or 5 years CD, the Live Oak Bank rates are quite competitive.
However, one thing to consider is that there are a number of online banks that don’t have such a high minimum deposit requirement. So, you will need to evaluate if you are prepared to go for a CD with the same or a slightly lower rate, in exchange for not needing to tie up such a large sum.
CD APY Range | Minimum Deposit | |
|---|---|---|
Marcus | 3.70% – 4.75% | $500 |
Axos Bank | 0.20% | $1,000 |
Barclays Bank | 4.30% – 4.90% | $0 |
PNC Bank | 0.01% – 4.00% | $1 |
Quontic Bank | 4.40% – 5.05% | $500 |
PenFed Credit Union | 2.00% – 4.35% | $1,000 |
Alliant Credit Union | 4.30% – 5.15% | $1,000 |
Sallie Mae | 4.00% – 5.00% | $2,500 |
Bread Financial | 4.25% – 4.75% | $1,500 |
Capital One | 3.90% – 4.75% | $0 |
Chase Bank | 0.02% – 4.00% | $1,000 |
Discover Bank | 2.00% – 4.75% | $2,500 |
CIT Bank | 0.30% – 5.00% | $1,000 |
Ally Bank | 2.00% – 4.80% | $0 |
Citi Bank | 0.05% – 4.75% | $500 |
Connexus Credit Union | 3.51% – 4.85% | $5,000 |
Merrick Bank | 4.15% – 5.20% | $25,000 |
Fidelity | 4.45% – 5.30% | $1,000 |
Charles Schwab | 5.33% – 5.50% | $1,000 |
Vanguard | 4.90% – 5.50% | $1,000 |
BMO Harris | 0.05% – 4.50% | $1,000 |
Wells Fargo | 0.50% – 4.51% | $2,500 |
Synchrony Bank | 2.25% – 5.00% | $0 |
Citizen Bank | 2.75% | $1,000 |
TD Bank | 1.00% – 5.00% | $250 |
Navy Federal | 0.40% – 4.55% | $1,000 |
LendingClub | 4.10% – 4.75% | $2,500 |
Live Oak Bank CD vs Savings Rates: Which Is Better?
Live Oak Bank also offers a very competitive savings account with 4.00% APY, as of June 2023.
Whether the savings rate is favorable when you compare it with the Live Oak Bank CD rates will depend on the CD term. The savings rate applies regardless of your balance and it is higher than the rate for CDs with a term of more than one year, but it is less than the six month or one year CD rates.
However, the rate is not the only factor to consider. Firstly, the Live Oak Bank savings account has no minimums and as with the CDs, there are no monthly maintenance fees to worry about.
You can also transfer funds into and out of the account as and when you like subject to a $250,000 daily limit. This is a key difference between this account and CDs, which do not allow you to add more funds to the account, with the exception of during the 10 day grace period after the CD matures.
About Live Oak Bank
Live Oak Bank has been operating since 2008 and it is a fully online financial institution. While the bank does not have a comprehensive product line, it does specialize in business checking and other business financial products. In fact, it is one of the top originators of small business loans in the U.S.
The overall aim of Live Oak Bank is to support small businesses and entrepreneurs to help them to reach their financial goals. In fact, Live Oak Bank has an impressive A+ rating with the Better Business Bureau, with numerous consumer reviews praising Live Oak Bank and its services.
FAQs
How does the early withdrawal penalty work?
The early withdrawal penalty is calculated according to the original CD term. For terms of less than 24 months, the penalty is 90 days of interest, but this increases to 180 days if your CD has a longer term.
How' the interest is calculated?
Interest on Live Oak Bank CDs is compounded daily and then credited to your account monthly.
Do Live Oak CDs come with a grace period?
Yes, there is a 10 day grace period after your CD matures. During this time, you can add funds to the account, make withdrawals or close the account without any penalties. After this time, the CD will automatically renew for the same term.
Does Live Oak offer promotions on CDs?
Live Oak Bank does not currently have any CD promotions.
Does Live Oak Bank Offer No Penalty CD Rates?
No, Live Oak Bank does not currently have any no penalty CDs. All its CDs incur a penalty if you make a withdrawal before the maturity date.
