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.
Interest Rates Last Update: April 15, 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: April 15, 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 CDs

APY Range

2.00% – 5.00%

Minimum Deposit

$2,500

Terms

6 months – 5 years

Our Rating

4
4/5

Live Oak Bank CDs

APY Range

2.00% – 5.00%

Minimum Deposit

$2,500

Terms

6 months – 5 years

Our Rating

4
4/5

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
4.75%
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

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Are Live Oak Bank CD Rates Competitive Compared to Other Banks?

When comparing Live Oak Bank with other banks, Live Oak Bank comes ahead when 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
4.00% – 5.05%
$500
First Internet Bank
4.14% – 5.31%
$1,000
Barclays Bank
3.50% – 5.30%
$0
PNC Bank
5.05%
$1
Quontic Bank
4.30% – 5.30%
$500
PenFed Credit Union
2.00% – 4.35%
$1,000
Alliant Credit Union
5.08%-5.20%
$1,000
Sallie Mae
4.00% – 4.95%
$2,500
Bread Financial
4.25% – 4.75%
$1,500
Capital One
4.00% – 5.10%
$0
Chase Bank
3.00% – 4.75%
$1,000
Discover Bank
2.00% – 4.70%
$2,500
CIT Bank
0.30% – 3.50%
$1,000
Ally Bank
3.00% – 4.50%
$0
Citi Bank
0.05% – 4.75%
$500
Connexus Credit Union
3.51% – 4.85%
$5,000
Merrick Bank
4.05% – 5.25%
$25,000
Fidelity
4.95% – 5.35%
$1,000
Charles Schwab
5.00% – 5.40%
$1,000
Vanguard
4.05% – 5.40%
$1,000
BMO Harris
0.05% – 4.50%
$1,000
Wells Fargo
4.75%- 5.01%
$2,500
Synchrony Bank
2.05% – 5.15%
$0
Citizen Bank
2.75% – 5.50%
$1,000
TD Bank
1.00% – 5.00%
$250
Navy Federal
4.85%
$1,000
LendingClub
4.00% – 5.15%
$2,500

Live Oak Bank CD vs Savings Rates: Which Is Better?

Live Oak Bank also offers a very competitive savings account with 4.40% APY, as of May 2024.

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 one of the LiveOak Bank drawbacks is the limited comprehensive product line, it specializes in business checking and other 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.

How We Rate Certificates of Deposits: Our Methodology

The Smart Investor team has thoroughly examined certificate of deposit (CD) offerings from various banks, considering multiple factors to provide a comprehensive evaluation. Here's how we rated them across four key categories:

  • CD Rates (50%): We meticulously analyzed the interest rates offered by each bank on their certificate of deposit (CD) products. Higher ratings were awarded to banks offering competitive rates that provide maximum returns for customers' investments. Factors such as the yield curve, current market conditions, and consistency of rates were considered to assess the attractiveness of each bank's CD rates.

  • CD Features (30%): This category evaluated the features associated with each bank's certificate of deposit offerings. Factors considered include the variety of terms available, early withdrawal penalties, minimum deposit requirements, and any additional features or benefits. Higher ratings were given to banks offering a diverse range of CD terms, reasonable early withdrawal fees, and flexible options to meet customers' investment needs.

  • Customer Experience (10%): A positive customer experience is paramount, even when investing in CDs. We assessed each bank's performance in this area, considering factors such as the ease of opening a CD account, the responsiveness of customer service, and overall user satisfaction. Higher ratings were assigned to banks with efficient account opening processes, helpful customer support, and a track record of satisfying customers.

  • Bank Reputation (10%): The reputation of a bank is a critical consideration when investing in CDs. We evaluated each bank's reputation based on factors such as financial stability, regulatory compliance, and public perception. Higher ratings were given to banks with a solid reputation for reliability and trustworthiness, ensuring customers' investments are safe and secure.

By considering these categories and assigning appropriate weights to each, our review aims to provide valuable insights to help individuals make informed decisions when investing in certificate of deposits.

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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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