In the first six months of last year, I wrote four different blog posts about Live Oak Bank’s series of CD Specials, which typically were available for a short time and required a $75K minimum deposit.
There was quite a bit of activity during that time, with Live Oak Bank featuring three different length-of-term CDs, one after another with very competitive rates, but by early July, the rates had dropped, or the Specials were no longer available.
Live Oak Bank has again begun to offer competitive CD rates, but this time the rules are completely different:
- There are multiple CDs with competitive rates being offered simultaneously.
- The minimum deposit is only $2.5K, with a balance cap of $250K.
- There is no limit as to how many CDs each household can open.
- There are no stated end-dates for the rates.
- There is no add-on feature
|1.75%||$2,500||$250k||Live Oak Bank||5 Year CD|
|1.55%||$2,500||$250k||Live Oak Bank||3 Year CD|
|1.45%||$2,500||$250k||Live Oak Bank||2 Year CD|
|1.35%||$2,500||$250k||Live Oak Bank||18 Month CD|
|1.30%||$2,500||$250k||Live Oak Bank||1 Year CD|
As stated on Live Oak Bank’s FAQs page, the Early Withdrawal Penalty reads as follows.
The early withdrawal penalty is the equivalent of 90 days of interest on the amount withdrawn for CD terms less than 2 years or 180 days of interest on the amount withdrawn for CD terms of 24 months or longer.
I wrote in greater detail about the funding process for Live Oak Bank’s CDs in February 2015, but the bottom line is that the initial funding must be done through an ACH transfer.
During the enrollment process, you will be asked to provide your existing checking or savings account information to transfer your funds via ACH. Accounts may only be funded from a checking or savings account.
Many thanks to the ever vigilant DA reader, PearlBrown, for her Forum post about Live Oak Bank’s latest foray.
Headquartered in Wilmington, North Carolina, Live Oak Bank is an internet bank that has no brick-and-mortar branches other than its Headquarters located on Tiburon Drive. At this time, Live Oak Bank's only deposit accounts are CDs, which must be opened online.
CSR confirmed that there is no "back button" on the online application, so extra care needs to be taken when filling out the application. CSR also pointed out that having a copy of your Driver’s License or other government issued ID uploaded on your computer will ensure speedy completion of your online application.
Live Oak Bank’s website has a very detailed FAQs page that can answer many questions about the CDs. If you need more clarification, you can reach a Deposit Services Representative at 866.518.0286.
Live Oak Bank (FDIC Certificate # 58665) has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 0.04% (excellent), based on September 30, 2015 data. In the past year, Live Oak Bank has increased its total deposits by $342.22 Million, excellent annual growth rate of 70.62%. Please refer to our financial overview of Live Oak Bank for more details.
A young but quickly growing institution, Live Oak Bank was founded in 2008. Live Oak Bank describes itself this way:
Since 2008, Live Oak Bank has been achieving its primary goal: financing small business growth nationwide. Today, Live Oak Bank is one of the top originators of small business loans, with one of the strongest loan portfolios in the country. Since we lend exclusively to small businesses, our focused lending experience is second to none.
Chip Mahan, CEO and key founder of Live Oak, was named by FutureBanker magazine as one of the "10 Most Influential People in Financial Services," and was also recently featured as an "industry innovator" in American Banker.
How the CDs Compare
Of the five CDs offered by Live Oak Bank, the 1-Year, 18-Month, and 2-Year CDs are the most competitive.
When compared to the 131 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, Live Oak Bank’s 1-Year CD currently ranks third.
When compared to the 98 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, Live Oak Bank’s 18-Month CD currently ranks third.
When compared to the 125 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, Live Oak Bank’s 2-Year CD currently ranks third.
The above rates are accurate as of 2/1/2016.