Live Oak Bank's 1-Year CD Joins The 2% APY Club

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Deal Summary: 1-year CD (2.00% APY), 18-month CD (2.05% APY), $2.5k minimum deposit. $250k maximum per account

Availability: Nationwide (internet bank)

Live Oak Bank is celebrating its 10th anniversary this month. What better way to mark the occasion, than by raising the rates on all of its CDs. The 1-year CD (2.00% APY) and 18-month CD (2.05% APY) are the most competitive being currently offered.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.05%$2,500$250kLive Oak Bank18 Month CD
2.00%$2,500$250kLive Oak Bank1 Year CD
Accounts mentioned in this post. Rates as of January 16, 2018.

When I first began to write about Live Oak Bank’s CDs, the Bank offered a variety of CD Specials, which had limited-time rates, add-on deposit options and large minimums. In early 2016, Live Oak Bank began to offer competitive CD rates and also changed how the CDs were structured:

  • There are multiple CDs with competitive rates being offered simultaneously.
  • The minimum deposit is only $2.5k.
  • 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

The current rates on Live Oak Bank's longer-term CDs are as follow:

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.45%$2,500$250kLive Oak Bank5 Year CD
2.30%$2,500$250kLive Oak Bank4 Year CD
2.15%$2,500$250kLive Oak Bank3 Year CD
2.10%$2,500$250kLive Oak Bank2 Year CD
Accounts mentioned in this post. Rates as of January 16, 2018.

As stated on Live Oak Bank’s FAQs, 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The early withdrawal penalty is the equivalent of 90 days of interest on the amount withdrawn for CD terms less than 24 months or 180 days of interest on the amount withdrawn for CD terms of 24 months or longer.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.

Thanks to DA reader, ChasR, for his Forum post about Live Oak rate increases.

Availability

Headquartered in Wilmington, North Carolina, Live Oak Bank is an internet bank with no brick-and-mortar branches other than the Bank’s Headquarters located on Tiburon Drive.

There is no direct link to Live Oak Bank’s online application for new customers. The first step in establishing a new account is the Get Started page.

Clicking on the “New Deposit Customers” 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 toward initiating the online application process.

CSR pointed out that there is no "back button" on the online application, so 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.

Bank Overview

Live Oak Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 0.92% (excellent), based on September 30, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $525.83 million, excellent annual growth rate of 48.55%. Please refer to our financial overview of Live Oak Bank (FDIC Certificate # 58665) for more details.

Live Oak Bank just marked its 10th anniversary, having opened its virtual doors in January 2008. A quickly growing institution, Live Oak Bank currently has $2.35 billion in assets and more than 18,000 customer accounts. 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

When compared to the 204 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 APY currently shares the top spot with Synchrony Bank’s 12-month CD APY.

Interest RateCD Length of TermCredit Union/Bank
2.00% APY1-Year CDLive Oak Bank
1.87% APY12-Month CDUSALLIANCE Financial
1.85% APY12-Month Top Online Promo CDM.Y. Safra Bank

When compared to the 143 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 APY currently ranks second, but when compared to internet banks only, the APY tops the list.

Interest RateCD Length of TermCredit Union/Bank
2.12% APY19-Month CD SpecialMutualOne Bank
2.05% APY18-Month CDLive Oak Bank
2.02% APY18-Month CDUSALLIANCE Financial

The above rates are accurate as of 1/11/2018.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.

Related Pages: Wilmington CD rates, 1-year CD rates, 5-year CD rates, nationwide deals, Internet banks

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