Live Oak Bank review

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Our experts answer readers’ banking questions and write unbiased product reviews (here’s how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

Overall bank rating

FeatureInsider rating (out of 5)
Business savings4.25

Pros and cons

Pros: Cons:
  • High rates on savings account

  • High rates on CDs

  • No personal checking account or money market account
  • $2,500 required to open a CD
  • Lacks quick access to your savings

Live Oak Bank Online Savings Account – Product Name Only

The Live Oak Bank Online Savings Account doesn’t require a minimum opening deposit (must have at least $0.01 to earn interest) or charge monthly fees. It also pays a competitive interest rate.

Depositing and receiving cash are the tricky parts. Although you can transfer funds into your account and deposit checks digitally, there’s no way to deposit cash.  You’ll have to transfer funds to an external bank account, which can take a couple of business days.

Live Oak Bank CD – Product Name Only

Live Oak’s minimum deposit of Live Oak Bank Certificate of Deposit is pretty steep. If you don’t have Live Oak Bank Certificate of Deposit on hand, you can open a CD with less at another online bank.

Live Oak Bank Business Savings – Product Name Only

How Live Oak Bank works

Live Oak is an online bank with a savings account and CDs. Not many customers have reviewed the mobile app in the Apple or Google Play stores, but the average review ratings so far are mediocre.

Speak to a customer service representative over the phone Monday through Friday, 8 a.m. to 8 p.m. ET. There’s no customer support available on weekends. There’s no live online chat feature, but you can fill out an online form and wait for a response.

Your deposits are FDIC insured for $250,000, or $500,000 for a joint account.

Live Oak Bank trustworthiness and BBB ratings

The Better Business grades companies’ trustworthiness. The current grade for Live Oak Bank is an A- rating. 

A good BBB rating won’t guarantee that a bank will be right for you. If you want to get a better picture of whether a bank may be good for you, make sure to get perspectives from friends, family, or online reviews. 

In 2021, Live Oak Bank and digital banking platform Apiture agreed to pay $4.65 million in a settlement that accused Live Oak Bank, Apiture, and nCino of having an agreement where they would not hire employees from other companies in Wilmington, North Carolina so the three banking companies could avoid offering competitive salaries.

Live Oak Bank vs. Ally

For a full banking experience, you’ll likely prefer Ally – Product Name Only to Live Oak Bank. Ally is the only financial institution of the three to offer checking and money market accounts.

Live Oak Bank has a pretty straightforward and simple saving account – there’s no minimum opening deposit and no monthly services. Meanwhile, Ally has savings tools that let you sort your money into “savings buckets” to help you save for financial goals. 

Live Oak Bank vs. Marcus

Live Oak Bank and Marcus have  similar savings accounts that require no minimum opening deposit and no monthly service fees. 

If you don’t have a lot of money to deposit into your CD, Marcus might be a stronger contender than Live Oak Bank. Marcus has a minimum opening deposit of $500 and also no-penalty CDs.

Read the original article on Business Insider