Live Oak Bank raised the rate on its Savings Account to 2.30% APY yesterday. Last week, Live Oak Bank lower the rates on its long-term CDs by a uniform 5 bps. Why do I think these two modest rate changes are blog-worthy? Because there seems to be a new trend of savings account rates inching upward, while CD rates (specifically long-term rates) have been declining.
Throughout 2017 and during the first part of 2018, the Savings Account APY was within reach of the rate leaders, but no longer. While any rate increase is welcome, the Savings Account APY has fallen behind as Live Oak Bank’s competitors continue to steadily increase rates. For example, in the past year Live Oak Bank has added a total of 80 bps, while PurePoint Financial has added 95 bps to its Savings Account (currently 2.35% APY) in the same time frame. Compounding the rate gap issue are new internet bank savings accounts, which have debuted with APYs close to 2.50% APY, such as Rising Bank’s High Yield Savings Account (2.45% APY).
With several short-term CD rate increases since July 2018 and last week’s long-term rate decrease, the yield curve continues to become more compressed. The difference between Live Oak Bank's 1-year and 5-year CDs has dwindled from 70 bps in July to 25 bps as of today. Please refer to our Live Oak Bank CD rate table for CD details and a listing of current rates.
Savings Account FAQs
Live Oak Bank has a Savings Account FAQs page, which answers many of the commonly asked questions. A few noteworthy answers regarding the bank’s ACH transfer service include:
You can move up to $250,000 per transfer. This applies to both internal and external transfers.
incoming transfers initiated through the Live Oak Bank Portal are held for five business days once posted to your Live Oak account.
Funds sent to an external account are available at that bank within 1-2 business days. The transfer must be initiated before 4:00 p.m. ET.
Thanks to DA readers, Bowman and Percussed, for their Forum posts about Live Oak Bank’s rate changes.
Headquartered in Wilmington, North Carolina, Live Oak Bank is a pure internet bank, having no brick-and-mortar branches. Live Oak’s product line is offered to U.S. citizens or permanent residents who possess a valid Social Security number.
The “Open Your Savings Account Today” page has a simple form that requests your name and email address. As explained on that page, “To begin the account opening process, please complete the information below.” According to CSR, this is the first step toward initiating the online application process.
Live Oak Bank’s online application is fairly straightforward, but CSR emphasized that there is no "back button" – meaning extra care needs to be taken 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 0.61% (excellent), based on September 30, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $790.36 million, excellent annual growth rate of 49.12%. Please refer to our financial overview of Live Oak Bank (FDIC Certificate # 58665) for more details.
Founded in 2008, Live Oak Bank is currently the fifth largest bank headquartered in North Carolina and the 296th largest bank in the country, with more than $3.4 billion in assets. The Bank specializes in small business loans in niche industries, such as self-storage companies, veterinary medicine, funeral homes, as well as more traditional industries like government contracting and hotels.
According to press release issued in November,
Live Oak Bank has been named the 2018 Lender of the Year by the U.S. Department of Agriculture’s Rural Business and Cooperative Service. Live Oak was presented the award Oct. 24 for being the highest volume lender nationwide for USDA’s Rural Business-Cooperative loan guarantee programs encompassing the Rural Energy for American Program (REAP) and the Business & Industry (B&I) loan program.
“Live Oak Bank is proud to serve American small business owners who are vital to our country’s economy,” said Jordan Blanchard, general manager of Live Oak’s energy and environmental lending team. “The REAP and B&I programs are important means for getting capital into the hands of companies that are increasing our country’s energy independence while bolstering job opportunities in rural America.”
How the Live Oak Savings Account Compares
When compared to the Savings Accounts with a minimum balance requirement of $1k or lower and are nationally available, Live Oak Bank’s Savings Account APY currently ranks seventh.
The above rates are accurate as of 2/23/2019.
To compare the top Savings account rates, both nationwide and state specific, please refer to our Savings Account Rates Table page.