Live Oak Bank Review
Live Oak Bank is an online bank for small business owners with high APY and no monthly fees. Could it be a good fit for your business banking?
Live Oak Bank
Total Rating | 3.8 |
---|---|
Fees & Rates3.7 | |
Services4.3 | |
Rewards3.8 | |
Features2.9 | |
Eligibility Requirements4.5 | |
Application Process3.3 | |
Sales & Advertising Transparency4.1 | |
Customer Service4.5 | |
User Reviews3.9 |
APY
4.00%Monthly Fee
$0Minimum Account Balance
$0 - $2,500Live Oak Bank At A Glance
- High-yield savings accounts of up to 4.0% APY and CDs of up to 5.40% with easy eligibility requirements
- No monthly fees or ACH fees
- Up to $10M in FDIC insurance available for balances of $350k+ (standard $250k available to all users regardless of account balance)
Pros
- High APY
- Low fees
- Certificate deposit (CD) options
- Up to $10m FDIC coverage available
Cons
- No cash deposits
- No checking account
- High outgoing wire transfer fees
- 3% foreign transaction fee
- Limited same-day transaction processing
Table of Contents
- What Is Live Oak Bank?
- Services Offered By Live Oak Bank
- Live Oak Bank Rewards & Perks
- Live Oak Bank Fees
- Live Oak Bank Eligibility Requirements
- Live Oak Bank Features
- Live Oak Bank Application Process
- Live Oak Bank Sales & Advertising Transparency
- Live Oak Bank Customer Service
- Live Oak Bank Reviews
- Is Live Oak Bank Safe?
- How Does Live Oak Bank Compare To Other Banking Options?
- The Bottom Line: Is Live Oak Bank Worth It?
What Is Live Oak Bank?
Live Oak Bank is an online personal and business banking institute that offers high-yield business savings accounts and certificate deposits (CDs).
You can earn up to 5.4% with Live Oak Bank, plus there are no monthly fees and unlimited transactions. Live Oak Bank also offers various loans to help give your business access to the funds it needs.
If you want to earn interest on your business’s hard-earned money, Live Oak Bank is one of the best options.
Live Oak Bank does have some high additional fees like foreign transaction fees and wire transfers, and there are no cash deposits. Currently, there is no checking account either, although Live Oak Bank will be offering a business checking product soon. (You can sign up for alerts for the checking product launch on the Live Oak Bank website.)
If the drawbacks, like no cash deposits and high foreign transaction fees, don’t affect your business, Live Oak is a great high-yield savings option.
Services Offered By Live Oak Bank
Services4.3 |
---|
Banking Services 4.0 |
Online Portal & Mobile App 5.0 |
Live Oak Bank offers an impressive high-yield savings account, as well as multiple business lending options. The only downside is that there are currently no checking accounts, though the company says this is coming soon. All in all, the company scores a 4.3/5 star rating for this section.
Here are all the services you’ll find with Live Oak Bank:
- High-yield savings
- Certificate deposits (CDs)
- Term loans
- SBA loans
- USDA Loans
Live Oak Bank Rewards & Perks
Rewards3.8 |
---|
Quality & Value Of Earned Rewards 3.8 |
Live Oak Bank offers up to 4.0% APY* for savings accounts and 5.4% for Certificate Deposits (CDs) with interest compounded daily. These earnings are incredibly competitive, with some of the highest APYs in the online business banking market. The only reason the company’s section rating is less than 5 stars is that there are no cash-back earning options.
*Some locations on Live Oak Banks’ website say 4.0% APY for business savings, and others say 4.4% APY.
Live Oak Bank Fees
Fees & Rates3.7 |
---|
Pricing 4.4 |
Transaction Fees 2.6 |
Transparency 5.0 |
Live Oak Bank earns 3.7/5 stars for fees. This section is a bit of a mixed bag with some of Live Oak Bank’s fees coming in low, while others are high when compared to the competition.
Fees | Fee Amount |
---|---|
Monthly Maintenance Fee | $0 |
ATM Fees | $0 for in-network ATMs; 3% for foreign ATMs |
Overdraft Fee | Varies |
Minimum Opening Deposit | $0 |
Minimum Balance | $0 – $2,500 |
Wire Transfer Fee | $0 – $19 |
ACH Fee | $0 |
Cash Deposit Fee | $0 |
Foreign Transaction Fee | 3% |
Excessive Transactions Fee | None |
Stop Payment Fee | $25 |
Live Oak Bank is transparent with its fee schedule, so you know exactly what you’re getting into before you sign up. Live Oak Bank has no monthly maintenance fees and no ACH fees.
You will find a 3% foreign transaction fee, which is quite high compared to other online business banks. Wire transfers are $0 for incoming transfers but $19 per outgoing transfer. There’s also a 3% out-of-network ATM fee. While most companies don’t protect against third-party out-of-network ATM fees, Live Bank is the first that I’ve seen charge its own out-of-network ATM fee.
All-in-all, if you don’t regularly have wire transfers or foreign transactions, then Live Oak Bank’s fees will fit your business just fine. However, if you process many foreign transaction fees or outgoing wire transfers, you may want to look at other online business bank options.
Live Oak Bank Eligibility Requirements
Eligibility Requirements4.5 |
---|
Eligibility Qualifications 5.0 |
Eligibility Availability 4.5 |
Eligibility Transparency 4.0 |
Live Oak Bank has relatively flexible eligibility requirements, earning a 4.5/5 star rating for this section. US residents with valid SSNs are eligible for Live Oak Bank so long as they fit into the following business structures:
- Corporations
- LLCs
- Sole proprietors
- Partnerships
- Limited partnerships
- Associations
- Nonprofits
There are no minimum balance requirements for a Live Oak Bank savings account. There is a $2,500 minimum balance for CDs. There is also a $350,000 minimum balance required for Live Oaks’ Insured Cash Sweep service, which gives businesses up to $10 million in FDIC insurance (all businesses with Live Oak get $250,000 in FDIC insurance coverage regardless of account balance).
Note: Dormant accounts will be closed after 24 months of inactivity. Since Live Oak Bank is a high-yield savings solution, it’d be easy to set it and forget it, but you’ll need some sort of regular activity to keep the account active.
Live Oak Bank Features
Features2.9 |
---|
Transaction Types Supported 5.0 |
Transaction Limits 3.0 |
Standard Banking Features 2.0 |
Finance Management Features 1.0 |
Extras 3.0 |
Live Oak Bank’s shining glory is its high-yield savings benefits. However, Live Oak Bank is missing a significant amount of more traditional business banking features including cash deposits, bill pay, expense tracking, and checks. Hopefully, Live Oak Bank’s upcoming checking account will address some of these feature gaps. Until then, Live Oak Bank gets a rating of 2.9/5 rating for its features.
In addition to high APY, you’ll find these features:
- Unlimited ACH transfers
- Mobile check deposit
- Wire transfers
- Mobile Live Oak app
- FDIC insurance up to $250K with up to $10M options available
- Authorized signers available
- Accounting integrations
Transaction Limits
Transaction Type | Transaction Limit |
---|---|
ATM Withdrawal | $1,000/day |
POS Purchase | $2,500/day |
Live Oak Bank doesn’t provide any information on ACH or wire transfer limits. Live Oak Essential or Plus account holders have a limit of $10,000/day for POS purchases.
Transaction Processing Times
Transactions with Live Oak take 1-2 business days, so long as the transaction was requested before 4:00 PM ET. Checks or mobile deposits are the exception, with processing times of up to 5 business days.
Live Oak Bank Application Process
Application Process3.3 |
---|
Ease & Transparency Of Application 2.8 |
Application Timeline 0.0 |
Opening Deposit Requirements 5.0 |
You can open a Live Oak Bank account online or through the Live Oak app. You’ll likely need standard documents for opening a bank account, though Live Oak Bank isn’t the most transparent about its application process. Live Oak also doesn’t disclose how long the application processing timeline is.
This lack of transparency contributed to our rating of 3.3/5 for this category.
Live Oak Bank Sales & Advertising Transparency
Sales & Advertising Transparency4.1 |
---|
Sales Practices 4.0 |
Web Presence 4.3 |
Live Oak Bank is fairly transparent for a bank. The company is very forthcoming with its fee schedule. The only information that is a bit hard to find is regarding the application process. Overall, Live Oak Bank has solid website disclosures and above-the-board sales and advertising practices, earning a 4.1/5 rating for this section.
Live Oak Bank Customer Service
Customer Service4.5 |
---|
Personal Support 3.2 |
Self-Service 5.0 |
Live Oak Bank has multiple support avenues that are easy to find, including a well-developed knowledge base. There is no dedicated support rep, but according to customer reviews, Live Oak has good customer service. This high level of support is why we rated Live Oak Bank 4.5/5 in this category.
Live Oak Bank Support | Availability |
---|---|
Phone Support | |
Email Support | |
Support Tickets | |
Live Chat | |
Dedicated Support Representative | |
Knowledge Base or Help Center | |
Videos & Tutorials | |
Company Blog | |
Social Media |
Live Oak Bank Reviews
User Reviews3.9 |
---|
User Feedback 4.0 |
Review Site Aggregate 3.8 |
Live Oak Bank receives mostly positive user reviews, although there are some complaints about the company. Live Oak gets a 3.8/5 star third-party reviews site aggregate score, showing that there are more positives than negatives (according to customers). This overall positive feedback contributed to our score of 3.9/5 for user reviews.
Negative Live Oak Bank Reviews & Complaints
- One report of an account being closed without giving back the remaining balance
- QuickBooks integration needs work
Positive Live Oak Bank Reviews
- Great customer support
- Easy to use
- Strong security
Is Live Oak Bank Safe?
Live Oak Bank is one of the only online banks to offer up to $10 million in FDIC insurance to eligible businesses (most cap out at the standard $250K). It is upfront with its privacy policies and security information and more than meets the standard security practices for online banking services. The bank also makes an effort to educate its customers on the best personal online security practices they can take to prevent fraud.
How Does Live Oak Bank Compare To Other Banking Options?
If you’re looking for high-yield savings, live Oak Bank is one of the best options out there. However, the company gets beat by the competition if you need cash deposits, affordable foreign transaction fees, or traditional banking and finance management features.
Live Oak Bank | LendingClub | Lili Bank | |
---|---|---|---|
Savings APY | 4.00% | 3.60% | 4.15% |
Checkings rewards | n/a | 1.5% APY + 1% cashback | Varies by eligible merchant purchase |
Monthly Banking Fee | $0 – $10/month | $0 | $0-$29/month |
Foreign Transaction Fee | 3% | 0.90% | 0% |
The Bottom Line: Is Live Oak Bank Worth It?
When it comes to high-yield business savings, Live Oak Bank offers one of the highest rates you’ll find. If you want your hard-earned money to earn you more money, Live Oak could be a great option.
This bank is also a good choice if you want access to capital through your bank. Live Oak Bank offers SBA loans, USDA loans, and term loans. Learn more about Live Oak Bank loans in our full review.
The main thing Live Oak Bank has going for it is high APY and no monthly fee. You won’t find fintech features like invoicing or accounting like you would with LendingClub and Lili Bank. You also won’t find business checking yet, so if you want additional features, a checking account, or no foreign transaction fees, a Live Oak bank alternative might be a better fit for your business.
Or, you could always use Live Oak Bank in addition to another online bank. Live Oak’s business savings account is a great option for storing emergency funds, cash reserves, etc. If you’re going to be storing a large sum in savings, it might as well be earning you interest.
Business Banking Review Methodology
Merchant Maverick has been researching and reviewing business banking services since 2015. Our writers have tested over thirty different banking products, including checking accounts, savings accounts, employee spending cards, and more. In each review, we evaluate rates and fees, services, rewards, features, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.
Read more about how we rate business banking products.
When comparing different banks and banking services, we consider many data points, including the ease and transparency of the account application process, account fees, sales ethics, minimum deposit requirements, and revenue, time in business, and credit score requirements. Our lists of the best banking services include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, valuable rewards, numerous transaction options, and competitive APY.
We spend an average of 10-15 hours researching and updating each one of our lists, making sure the banking services included meet our internal standards for quality and reputation.
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