Live Oak Bank Business Savings Review 2023
This article is part of a larger series on Business Banking.
With one of the highest interest yields in the market, Live Oak Bank’s business savings account is an excellent choice for your business. The internet-only bank earns an annual percentage yield (APY) of 4.00% with a 1-cent minimum balance to earn interest, no monthly maintenance fees, and no earning cap.
The bank provides other services, such as high-yield business certificates of deposit (CDs), business checking, and small business loans. It also offers up to $10 million in Federal Deposit Insurance Corporation (FDIC) insurance coverage through IntraFi Network Deposits.
The following business entity types can open a Live Oak Bank Business Savings account: corporation, limited liability corporation (LLC), sole proprietorship, partnership, limited partnership (LP), professional corporation, association, and nonprofit organization.
What We Like
- No minimum balance requirements
- No monthly maintenance fees
- Industry-leading APY
What's Missing
- No cash deposits accepted
- No physical branches
- $19 wire transfer fee
Features
- 4.00% APY
- Online and mobile banking
- Integrates with Quickbooks
- High-yield CDs available
- Offers Small Business Administration (SBA) loans and small business checking
- Up to $10 million in FDIC coverage via IntraFi Network Deposits
How Live Oak Bank Stacks Up With Its Competitors
APY | Monthly Fee | ATM Fee | Minimum Opening Deposit | |
|---|---|---|---|---|
Business Savings Account | 4.00% | $0 | N/A (no debit card issued for savings) | None |
 Business Savings Account | 2.70% to 3.65% | $0 | N/A (no debit card issued for savings) | None |
 Business Savings | 0.20% first 12 months, then standard variable APY | $3; can be waived | None at Capital One ATMs, $2 for out-of-network | $250 |
When Live Oak Bank Is a Good Fit
- Your business needs are served by a digital bank: Live Oak Bank has no brick-and-mortar bank branches. Businesses must conduct their banking operations on Live Oak Bank’s website or mobile application (available on both iOS and Android).
- You want to earn competitive interest on balances: It has a considerable APY of 4.00%, and the interest compounds daily. Because of its competitive APY and minimal fees, it’s our #1 choice among the best savings accounts for small businesses.
- You want access to other banking products: The bank offers business checking, CDs, and small business loans, including Small Business Administration (SBA), United States Department of Agriculture (USDA), and commercial loans. Live Oak Bank tops our list of the leading SBA lenders.
When Live Oak Bank Is Not a Good Fit
- You work with cash regularly: Live Oak Bank doesn’t accept cash deposits. A better alternative is Capital One, which lets businesses deposit $5,000 worth of cash fee-free per month. See our review of Capital One Business Savings to find out more about its features.
- You send wire transfers regularly: Live Oak Bank charges a $19 fee for outgoing wire transfers. Businesses wanting to send and receive wire transfers fee-free can consider the fintech solution Mercury. Our Mercury Business Checking review provides more detailed information on fee-free transactions.
- You want branch access nationwide: Live Oak Bank is an online-only bank. Consider opening an account with Chase, which provides around 4,700 branches in 48 states. Check out its business savings products from our Chase Platinum Business Checking review to discover which account suits your needs.
Read our guide to the best small business savings accounts for additional recommendations if your small business meets one or more of these scenarios.
Live Oak Bank Business Savings Overview
Live Oak Bank Business Savings Requirements
When you apply for a business savings account, Live Oak Bank will ask for the following personal information:
- Full name
- Current address
- Social Security number
- Date of birth
- Citizenship status
- Mobile number
- Email address
- Employment status
It’ll also ask you whether you’re a current or past foreign senior political figure or an immediate family member or close associate of a current or past foreign senior political figure. Then, it’ll ask for relevant business and banking information.
The authorized signer must be a US citizen or permanent resident with a valid Social Security number. Those legally admitted to the US temporarily and have US Department of Homeland Security (DHS) authorization to work are ineligible to open an account. Live Oak Bank may ask for supporting documents to verify.
For a list of documents banks often require during the application process, see our guide on how to open a business bank account. It includes a free downloadable checklist of documents that banks typically require.
Live Oak Bank Business Savings Features
Live Oak Bank’s features are straightforward: it offers competitive interest rates and online and mobile banking. The bank also charges a dormant account fee to discourage inactivity.
Competitive Interest Rates
Live Oak Bank’s business savings account earns interest at a rate of 4.00%. However, the rate is variable and subject to change without notice. Interest compounds daily, and accounts must hold at least 1 cent to qualify.
Online & Mobile Banking
Live Oak Bank customers can access their savings accounts online and through the mobile app, available on iOS and Android. Through the mobile app, account holders can check balances, search transaction history, transfer funds, make check deposits, and view and download account statements and tax documents.
On the App Store1, Live Oak Bank’s mobile app has a rating of 2.8 out of 5 with around 60 reviews, while on Google Play2, it earned 3.2 out of 5 stars with more than 60 reviews. Users appreciate the intuitive interface that makes it easy to manage their bank accounts, but many complained about the mobile check deposit functionality and app crashes.
Other Live Oak Bank Business Products
Live Oak Bank also offers high-yield CDs, small business checking, and small business loans.
Businesses can access Live Oak Bank’s most competitive interest rates through its CD offerings. The lowest rate a business can earn is 2.00% for an 18-month term. The highest rate is 5% for a one-year term. Though Live Oak Bank charges no monthly fees, the minimum deposit requirement for CDs is $2,500. The maximum balance a CD can hold is $250,000.
Live Oak Bank offers three small business checking accounts.
- Tidal Business Checking: This account has no monthly account fee and offers fee-free transactions.
- Business Plus Checking: A monthly account fee of $25 is collected, but it can be waived if you maintain a $25,000 average daily balance in this checking account.
- Business Plus Analysis Checking: You need to contact Live Oak Bank for account details.
For more information on this product, read our review of Live Oak’s business checking.
Live Oak Bank offers SBA loans, USDA loans, and commercial loans to business owners wanting to buy or franchise a business or build and expand their own enterprises. All small business loans start at $150,000. After closing each loan, Live Oak Bank connects businesses with one of their business analysts, who’ll check in each quarter to assess loan progress and provide insights and guidance.
The bank can combine typical SBA 7(a) and SBA 504 loans with conventional loans and lines of credit for a customized loan package. To learn more about these loans, read our guide on SBA loan types, rates, and requirements.
You can get up to $10 million in FDIC insurance coverage through a single bank relationship with Live Oak Bank. You can also conveniently access your funds within one to two business days by sending a request to your dedicated business banker.
Live Oak Bank Reviews from Users
On Trustpilot3, Live Oak Bank has a 4.1 out of 5 rating from around 50 reviews. Meanwhile, on DepositAccounts4, it scored a 3 out of 5 from around 120 reviews.
Users who left a Live Oak Bank business savings review often mentioned that they appreciate the high interest rates of the savings products compared to the rates offered by competitors. They also praised the outstanding customer service they received and stated the staff was friendly, supportive, and knowledgeable. Further, they said the account opening process was smooth.
However, some gave negative feedback and highlighted that they experienced difficulty opening a business savings account due to redundant document requests. Others also commented that the bank reduced its CD interest rates.
Bottom Line
Live Oak Bank helps businesses grow their excess funds and gain access to a good selection of banking services, such as business CDs, business checking, and small business loans. They can also access up to $10 million in FDIC insurance coverage through IntraFi Network Deposits. Cash-reliant businesses, however, might have to look elsewhere for in-person banking and support for cash deposits.
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