Banking » Reviews » Live Oak CD Rates: High APY On Specific Terms
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Live Oak CD Rates: High APY On Specific Terms

Live Oak CDs offers high APY on specific terms and a reasonable early withdrawal penalty. But, it has a quite high minimum deposit of $2,500
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.

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO

Experience

Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.
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.

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO

Experience

Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.

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Live Oak Bank CDs

APY Range

2.00% – 5.00%

Minimum Deposit

$2,500

Terms

6 months – 5 years

Fees

$0

Live Oak Bank CDs

APY Range

2.00% – 5.00%

Minimum Deposit

$2,500

Terms

6 months – 5 years

Fees

$0

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

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.

Interest on Live Oak Bank CDs is compounded daily and then credited to your account monthly.

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.

Live Oak Bank does not currently have any CD promotions.

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.

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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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