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 1.40% 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.
How Live Oak Bank Stacks Up With Its Competitors
Minimum Opening Deposit
Free at Allpoint ATM networks
Prime Alliance Bank Business Savings Account
1.20% to 1.55%
Free at MoneyPass ATMs; $1.50 for out-of-network
Capital One Business Savings
0.20% first 12 months, then standard variable APY
$3; can be waived
Free at Capital One ATMs, $2 for out-of-network
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: Its APY of 1.40% is 17x larger than the national average. 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.
- You make more than six transactions per month regularly: Like many savings accounts, Live Oak Bank’s business savings accounts limit transactions to six per statement cycle. If you make more than six transactions monthly and want the advantage of earning interest on account balances, it may be better to opt for an interest-bearing checking account. Bluevine, which lets qualified accounts earn 2.0% APY on checking balances, is a good option.
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
Required Opening Deposit
Required Balance Minimum
1 cent to earn interest
Transaction Limit Before Fees
6 per statement cycle, then $10 after limit
Automated Clearing House (ACH) Fees
Wire Transfer Fees
Free for incoming; $19 for outgoing
None at Allpoint ATMs
No cash deposits accepted
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 will 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 will 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 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 1.40%. However, the rate is variable and subject to change without notice. Interest compounds daily, and accounts must hold at least 1 cent to qualify.
Live Oak Bank customers can access their savings accounts 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.
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 1.50% for a six-month term. The highest rate is 3.00% for a five-year term. Although 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 called Tidal Small Business Checking. Like Live Oak Bank’s savings account, Tidal Small Business Checking charges no monthly maintenance fees and imposes no minimum balance requirements. Tidal Small Business Checking 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 will check in each quarter to assess loan progress and provide insights and guidance.
Live Oak Bank Business Savings Pros & Cons
|Industry-leading APY||No cash deposits accepted|
|No monthly maintenance fees||$19 wire transfer fee|
|No minimum balance requirements||$10 fee after transaction limit|
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 minimum balance requirements, and better interest rates. However, fees for outgoing wire transfers remain high at $19 per transaction.
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, cheaper fees, and higher transaction limits. Here are three alternative options to consider:
- Capital One: Best for businesses that need in-person banking and cash deposit functionality. Live Oak Bank does not accept cash deposits and has no physical bank branches. Capital One has more than 750 branches across the country and allows fee-free deposits up to $5,000.
- Mercury: Best for businesses that rely on wire transfers. Live Oak Bank charges $19 for outgoing wire transfers. Under Mercury, incoming and outgoing wire transfers are both free.
- Bluevine: Best for businesses that want to earn competitive interest on their checking accounts rather than savings accounts. Live Oak Bank limits fee-free transactions to six per statement period. Placing funds in an interest-earning checking account like Bluevine, which is on our list of best small business checking accounts due to its 2.0% APY rate, lets businesses earn interest without limiting access to their money.
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.