The benefits explained
- Decent interest rates – As of August 15, 2022, Live Oak Bank has posted an annual percentage yield (APY) of 1.75% on its savings accounts, which is significantly higher than the national average rate of 0.13% for deposit accounts to August 15, 2022. However, this rate is a bit lower than some of the more popular online banks.
- No monthly maintenance fees – There are no monthly account fees. However, if you maintain a balance of less than $10.01 and your account is inactive for 24 consecutive months, you will be charged an inactive account fee. This fee will be $10 or whatever remains in the account, whichever is less.
- No minimum amount to open an account and no minimum balance – You don’t need to put money in this account to get it. However, keep in mind the 24 month inactivity time limit which could trigger an inactive account fee and reset your balance to zero.
- No bells or whistles – This could potentially be seen as a positive. For those who want to do business with a financial institution with robust products and services, Live Oak Bank probably seems a bit lacking. However, for those who want a simple and straightforward option, this might just fill the bill.
- No debit card – As Live Oak Bank is primarily for those looking for a deposit account, you won’t be able to make purchases with a debit card.
- No ATM access – As an online-only institution, Live Oak does not have physical locations where you can access your funds.
Who is Live Oak for?
Live Oak Bank should appeal to consumers looking for a digital bank in which to store their money and earn interest. It is particularly suitable for those who:
- You want to avoid monthly maintenance fees
- You don’t want to worry about minimum balance requirements
- You want a safe option to grow your money in a liquid Account
- Are looking for a bank to deposit their money
What does Live Oak Bank offer?
Live Oak Bank offers one thing and one thing only: deposit accounts backed by the Federal Deposit Insurance Corporation (FDIC).
High yield online savings
Live Oak Bank’s high yield savings account has a more than acceptable APY of 1.75%. Account holders don’t have to worry about paying monthly maintenance fees, nor are there any minimum balance requirements. However, the free banking services stop there. If you exceed six transactions per monthly statement cycle, you will earn $10 per transaction. The insufficient funds fee is $25 and returned items are $10. If there were to be a stop payment, you plan to shell out $25.
high performance CDs
CDs offer a way to save your money for a period of time. They usually have higher interest rates than savings accounts, which means your money can grow faster. Live Oak Bank CDs have no monthly account fees. Terms range from six months to five years. However, the amount you need to open a CD is $2,500 and the maximum balance is $250,000.
There are fees if you need to withdraw money before the CD matures. The early withdrawal penalty is a portion of the interest earned and depends on the term of the CD. For CDs with a term of less than 24 months, the early withdrawal penalty is 90 days of simple interest. For CDs with a term longer than 24 months, you will be charged 180 days of simple interest.
What happens after the CD term ends and the CD matures? It will automatically renew for the same term at the prevailing interest rate. You have the option of withdrawing your money from your CD and you have 10 calendar days after the due date to do so.
Live Oak Bank’s terms and prices for CDs are as follows:
|Live Oak Bank High Yield CD Rates|
|6 months||1.85% ABS|
|12 months||2.50% APY|
|18 months||2.60% APY|
|36 months||2.70% APY|
|48 months||2.70% APY|
|60 months||2.70% APY|
Other financial products offered by Live Oak Bank
As for personal accounts, Live Oak Bank only offers savings and CDs.
Live Oak Bank Customer Service
The Live Oak Bank customer support team is available by phone weekdays from 8 a.m. to 8 p.m. EST at 1-866-518-0286.
How to Bank with Live Oak Bank
Accounts can only be opened online and you will need standard information, such as your contact details, social security number and additional documents to verify your identity. You will also need to provide the necessary information to an external bank to transfer your money to your new account.
Live Oak Bank is a simple, no-frills option for those who want an FDIC-protected deposit account that pays an above-average interest rate. It is also a strong choice for those who are comfortable with online banking– using the app or logging into their computer for everything from opening an account to transferring money between accounts. The absence of monthly maintenance fees is also an attractive feature. However, if you’re looking for a CD with low minimum requirements, Live Oak Bank’s $2,500 may be a hindrance for those who don’t have much to store for a longer period of time.
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