In December, Live Oak Bank raised the rate on its Savings Account by 5 bps the day after the Fed raised the federal funds rate. Live Oak Bank decided not to wait this time. Just before yesterday’s rate hike by the Fed, Live Oak Bank raised the Savings Account APY by 10 bps to 1.70%. There is no minimum opening deposit requirement or minimum balance requirement to earn the stated APY, although the Savings Account is capped at $5 million.
In the nine months since the Savings Account was introduced, the APY has gone from 1.25% to 1.70% in six rate increases.
The Savings Account is quite straightforward, with no unusual requirements or limitations. According to the Terms and Conditions document (page 18),
- There is a $10 charge for each withdrawal beyond the allowed six per month.
- If the transaction limitation is exceeded three times in a rolling 12 month period, the account will be closed.
- While there is no minimum balance requirement, if the account is not funded within 14 days of opening, the Bank may close the account.
- If the balance is less than $10.01 and there has been no activity for 24 consecutive months, a dormant account fee will be assessed and the account will be closed. The amount of the fee is either the account balance or $10, whichever is less.
The Savings Account FAQs page answers many of the commonly asked questions. For example,
Can I add a beneficiary?
Yes, you may add up to six beneficiaries to your account. If the beneficiary is a person, he/she must be a U.S. citizen.
The FAQs also states that,
You can move up to $250,000 per transfer.
This applies to both internal and external transfers.
Thanks to DA reader, tbc3, for the Forum post about Live Oak Bank’s latest Savings account rate increase.
Headquartered in Wilmington, North Carolina, Live Oak Bank is an internet bank with no brick-and-mortar branches.
The first step in establishing a new account is the Get Started page. There is no direct link to Live Oak Bank’s online application for new customers.
Clicking on the “Open Your Savings Account Today” button takes you to a simple form that requests your name and email address. As explained on that page, “To begin the account creation process, please complete the information below.” According to CSR, this is the first step in the online application process.
While Live Oak Bank’s online application is fairly uncomplicated, CSR emphasized that there is no "back button," so extra care is needed when filling out the application. CSR also stated that having a copy of your Driver’s License (or other government-issued ID) uploaded on your computer will insure speedy completion of your online application.
Live Oak Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 0.39% (excellent), based on December 31, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $539.97 million, excellent annual growth rate of 46.46%. Please refer to our financial overview of Live Oak Bank (FDIC Certificate # 58665) for more details.
A quickly growing institution, Live Oak Bank currently has $2.67 billion in assets and more than 24,300 customer accounts. In addition to just having marked its 10th anniversary, Live Oak Bank has another reason to celebrate. According to press release issued on Monday,
Live Oak Bank has reached a milestone in closing its 165th self-storage loan in December 2017 providing more than $350 million in loans to self-storage company owner-operators nationwide.
Live Oak was the largest self-storage lender in the nation in 2016, according to data from the U.S. Small Business Administration (SBA), and made its first self-storage loan in 2015.
How the Savings Account Compares
When compared to the Personal Savings accounts tracked by DepositAccounts.com that are available nationwide, Live Oak Bank’s Savings Account APY currently ranks fifth.
|Interest Rate||Account Name||Credit Union/Bank|
|1.85% APY||eOne Savings||Salem Five Direct|
|1.80% APY||High Rate Online Savings||Bank 7|
|1.70% APY||Savings Account||Live Oak Bank|
The above rates are accurate as of 3/22/2018.
To search for the best Savings account rates, both nationwide and state specific, please refer to our Savings Account Rates Table page.