Live Oak Bank Business Savings Review 2023
Tricia has nearly two decades of experience in commercial and federal government lending. Her expertise is highlighted throughout small business loan content on Fit Small Business.
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. Live Oak Bank also offers other services, such as high-yield business certificates of deposit (CDs), business checking, and small business loans.
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
- 4.0% APY
- Online and mobile banking
- Integrates with QuickBooks
- High-yield CDs available
How Live Oak Bank Stacks Up With Its Competitors
APY | Monthly Fee | ATM Fee | Minimum Opening Deposit | |
|---|---|---|---|---|
4.00% | $0 | N/A (no debit card issued for savings) | None | |
2.70%–3.65% | $0 | N/A (no debit card issued for savings) | None | |
0.20% first 12 months, then standard variable APY | $3; can be waived | Free 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 is our top-recommended SBA lender.
When Live Oak Bank Is Not a Good Fit
- You work with cash regularly: Currently, 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.
- 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.
Check out 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 if you’re an immediate family member or close associate of a current or past foreign senior political figure.
Then, it’ll request relevant business and banking information. For a list of documents banks often require during the application process, see our guide to opening a business bank account.
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.
Reviews for Live Oak Bank’s mobile app are average on both the App Store (2.8 out of 5) and Google Play (3.4 out of 5). Users have positive feedback on its clean and simple interface, while the negative comments center on constant failed biometric logins.
Other Live Oak Bank Business Products
Live Oak Bank also offers high-yield CDs, small business checking, and small business loans.
High-yield CDs
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 4.45% for a one-year term. Though Live Oak Bank charges no monthly fees, the minimum balance requirement for CDs is $2,500. The maximum balance a CD can hold is $250,000.
Small Business Checking
Live Oak Bank also offers a small business checking account. Like Live Oak Bank’s savings account, small business checking charges no monthly maintenance fees and imposes a $100 minimum to open an account. Users can make an unlimited number of transactions fee-free. However, the account doesn’t earn interest.
Small Business Loans
Live Oak Bank offers SBA loans, USDA loans, and commercial loans. 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.
Live Oak Bank Business Savings Pros & Cons
| PROS | CONS |
|---|---|
| Industry-leading APY | No cash deposits accepted |
| No monthly maintenance fees | $19 wire transfer fee |
| No minimum balance requirements | No debit card issued for savings |
Live Oak Bank has the typical profile of an internet-only bank: at the cost of access to physical branch banking and cash deposit functionality, businesses get cheaper fees, lower to negligible minimum balance requirements, and better interest rates. However, fees for outgoing wire transfers remain high at $19 per transaction. You also won’t have ATM access since a debit card isn’t issued for business savings accounts.
Live Oak Bank User Reviews
| PROS | CONS |
|---|---|
| Excellent web interface | Limited business hours for customer support |
| Very competitive rates for CD and savings accounts | Delay on financial transfers |
| Easy CD account opening process | Inconvenient security verification methods, leading to being locked out |
| Polite and friendly customer service | |
Live Oak Bank has a 3 out of 5 rating on DepositAccounts. Users said that they appreciate the high-yield savings and CD accounts, quick CD account opening, and superb customer service. Some reviewers even noted that the communications are prompt, the online platform is efficient, and the staff is knowledgeable and customer-friendly.
However, some mentioned that the fund transfers take too long, while others wished to have customer support access beyond the weekdays. Further, some customers found the identity verification process time-consuming by requiring three separate IDs and answering questions that require one to open Google Maps.
Alternatives To Live Oak Bank Business Savings
Though Live Oak Bank can cover basic savings needs, certain businesses may prefer having access to physical branches, a niche account for rental property owners, and ATM access through a free debit card. Here are three alternative options to consider:
- Chase is best for businesses needing in-person banking and cash deposit functionality. Live Oak Bank doesn’t accept cash deposits and has no physical bank branches, whereas Chase has branches in 48 states and offers fee-free deposits up to $5,000 for its Business Complete Banking account.
- Baselane* is ideal for landlords with its 4.0% APY interest and up to 5% cash back offer. Live Oak Bank offers a typical business account, whereas Baselane allows real estate investors to benefit from its high-yield checking account and convenient rent collection tools. It’s part of our best banks for real estate investors for its all-in-one banking and financial platform with commercial real estate (CRE) loan products.
- Bluevine* is optimal for businesses wanting to earn competitive interest on their checking accounts rather than savings accounts. Bluevine is on our list of best small business checking accounts due to its 2.0% APY rate if you meet the qualifying conditions. It also offers ATM access through a free debit card. Live Oak Bank doesn’t issue debit cards for its business savings.
*Providers are financial technology (fintech) platforms backed by and FDIC-insured through a supporting bank partnership (Blue Ridge Bank for Baselane and Coastal Community Bank for Bluevine).
Bottom Line
Through Live Oak Bank, 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. Cash-reliant businesses, however, might have to look elsewhere for in-person banking and support for cash deposits.
