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 4.0% with a 1-cent minimum balance to earn interest, no monthly maintenance fees, and no earning cap.
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.
The bank provides other products, such as high-yield business certificates of deposit (CDs), business checking, Small Business Administration (SBA) loans, and United States Department of Agriculture (USDA) loans. It also offers up to $10 million in Federal Deposit Insurance Corp. (FDIC) insurance coverage through the bank’s insured cash sweep program.
- No cash deposits accepted
- No physical branches
- $19 wire transfer fee
- 4.0% APY
- Online and mobile banking
- Integrates with QuickBooks
- High-yield CDs available
- SBA loans and USDA loans
- Business checking accounts
- Insured cash sweep (up to $10 million in FDIC coverage)
How Live Oak Bank Stacks Up With Its Competitors
Minimum Opening Deposit
Business Savings Account
N/A (no debit card issued for savings)
Business Savings Account
3.85% to 4.25% based on balance
N/A (no debit card issued for savings)
Up to 4.1% promo rate for first 6 months, then standard variable APY
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: Live Oak business savings has a considerable APY of 4.0%, 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, SBA, and USDA loans. Live Oak Bank tops our list of the leading SBA lenders.
- You require more protection for business funds above $250,000: Live Oak Bank has an insured cash sweep program with a $350,000 balance requirement. Enrolling in this program lets you access up to $10 million in FDIC insurance coverage.
When To Consider Live Oak Bank Alternatives
- You work with cash regularly: Live Oak Bank doesn’t accept cash deposits. A better alternative is Capital One, which lets businesses deposit $10,000 worth of cash fee-free per month. See our Capital One business savings review to find out more about the account’s 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 review of Mercury business checking 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. If you plan to open a business checking account, you may also be interested in our list of the leading small business checking accounts.
Live Oak Bank Business Savings Overview
Live Oak Bank Business Savings Account Requirements
Part of the Live Oak Bank business savings account requirements when you apply for a new account is to provide 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.
Live Oak Bank Business Savings Account Features
The Live Oak business savings features are straightforward: it offers competitive interest rates, various funding options, 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 4.0%. However, the rate is variable and subject to change without notice. Interest compounds daily, and accounts must hold at least 1 cent to qualify.
Account Funding Options
Users can deposit funds into their accounts through
- ACH transactions
- Wire transfers
- Mobile check deposits via the bank’s app
- Fund transfers between Live Oak and linked external accounts
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 Store, Live Oak Bank’s mobile app has a rating of 2.7 from around 70 reviews, while on Google Play, it earned 3.1 from over 75 reviews. Users appreciate the app’s clean design, but many complained about the app freezing and crashing when performing mobile check deposits. These reviewers commented that they had to delete and reload the app constantly.
Other Live Oak Bank Business Products
Businesses can access Live Oak Bank’s most competitive interest rates through its CD offerings. The lowest rate a business can earn is 2.0% for a two-year term, whereas the highest rate is 5.30% 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 business checking accounts.
- Business Essential: This account has a $10 monthly account fee that you can waive by maintaining an average daily balance of $1,000.
- Business Plus Checking: A monthly account fee of $25 is collected, but you can waive it by keeping a $25,000 average daily balance in this checking account.
- Business Plus Analysis Checking: This account offers an earnings credit that can offset fees. You need to contact Live Oak Bank for account details.
- USDA Rural Energy for America Program (REAP)
- USDA Water and Environmental (WEP) Program
- USDA 9003 Program
- USDA Community Facilities Program
- USDA Business & Industry (B&I) Program
Live Oak Bank offers insured cash sweep for businesses and requires a minimum balance of $350,000 to enroll in this program. 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 Business Savings Account Reviews From Users
Customers who left a Live Oak Bank business savings account review praised the online bank’s competitive interest rates. They also appreciated its impeccable customer service and said that the bank focuses on managing relationships and helping small businesses succeed. Reviewers shared that the application process was easy, simple, and straightforward.
However, some were dissatisfied with the lack of loan options for some business industries. Others also mentioned that the bank offers poor support for QuickBooks and Quicken and that the repeated establishment of connections was inconvenient.
Live Oak Bank helps businesses grow their excess funds and gain access to a good selection of banking products, such as business CDs, business checking, and SBA and USDA loans. They can also access up to $10 million in FDIC insurance coverage through the bank’s insured cash sweep program. Cash-reliant businesses, however, might have to look elsewhere for in-person banking and support for cash deposits.