Live Oak Bank Review [2024]

According to recent data from the Federal Deposit Insurance Corporation (FDIC), there are 4,614 federally insured banks in the United States. Live Oak Bank is one of them.

That FDIC protection is part of what makes Live Oak Bank so intriguing. This isn’t some ramshackle operation. It’s a legit bank – and a bank that offers super competitive rates on savings accounts and CDs.

In this Live Oak Bank Review, I’ll explain how to open an account. I’ll also show you why using Live Oak Bank is a safe way to grow your savings reliably. 

What is Live Oak Bank?

Live Oak Bank is an online bank based in Wilmington, North Carolina. 

It specializes in both personal banking and small business banking. And while there are no physical branches to visit, you can manage your account online and through the Live Oak Bank app, which is available on iOS and Android. 

Live Oak Bank offers several banking products:

• Savings accounts. Live Oak Bank boasts that the interest rates are 9x the national average. Click here to see the current rate.
• Certificates of deposit (CDs). These interest rates are also competitive. Click here to see what rates you can get today.
• Small business loans. You can use Live Oak Bank for both commercial loans and government-backed loans.
• Business banking. Your business can open a savings account or CDs. Click here to see current rates. 

For more information on account types, check out this article on money market vs CD. 

One benefit of Live Oak Bank is that there are no maintenance fees or minimum balance requirements. And since the bank is a member of the Federal Deposit Insurance Corporation (FDIC), your first $250,000 is protected by the federal government.

So, with Live Oak Bank, you get the convenience of an online platform with the security of a normal bank.

Looking for other banking options? Read this list of the best banks in America. 

How to Open a Live Oak Bank Account 

Here are step-by-step instructions for opening an account with Live Oak Bank:

1. Go to the official Live Oak Bank website and click “Get Started” (in the top-right corner of the screen).
2. Choose between “Personal Banking” and “Business Banking.”
3. Decide between a savings account and a CD, then click “Open Now.”
4. Complete the online application by providing your social security number and answering some basic questions. You could be asked for additional documentation to verify the information you provide. 
5. Fund your account remotely.

There’s a final step that’s optional but definitely a time-saver: downloading the Live Oak Bank app. Why not make it as easy as possible to check your account on the go?

Unfortunately, there are no active promotions currently available for Live Oak Bank – so you won’t get free money for opening an account. But there are other banks that will give you a lucrative welcome bonus. To take advantage, read this list of the best bank promotions. And if you’re looking for banks wtih immediate sign-up bonus, check out this list.

Is Live Oak Bank Legit?

Live Oak Bank is a legitimate online bank. It’s run by Live Oak Bancshares, a real company that’s traded on the New York Stock Exchange (NYSE: LOB). It’s also a member of the FDIC.

Then there are the online reviews, which are generally reassuring. Users on the review site Trustpilot give Live Oak Bank an excellent rating with an average of 4.5 stars.

For more legit banking options, read this list of 5% interest savings accounts.

Is Live Oak Bank Safe?

Leaving your money with Live Oak Bank is completely safe – unless you’re depositing more than $250,000, that is.

Why? Because Live Oak Bank is a member of the FDIC. 

That means the federal government guarantees the first $250,000 in every account. So even if Live Oak Bank were to disappear off the face of the earth, you’d still recover your funds from Uncle Sam.

Pros and Cons of Live Oak Bank

Live Oak Bank might be a safe, legit institution – but that doesn’t mean it’s flawless. And since this Live Oak Bank review aims to be totally fair and balanced, I’m laying out both the pros and the cons below. 

Pros

• The interest rates are super competitive. As an online bank with little overhead, Live Oak Bank can offer some of the best yields around on savings accounts and CDs. Click here to see current rates.
• There are no maintenance fees. That means you won’t have to worry about money disappearing from your account each month. 
• There’s no minimum balance requirement for savings accounts. That makes Live Oak Bank a great option for anyone who wants to earn interest on a smaller amount of money. 

Cons

• There are no physical branches. That’s not a problem if you love online banking. But if you prefer in-person customer service? Then yeah – this isn’t the bank for you.
• You can’t deposit cash. Since Live Oak Bank is entirely online, you can only deposit funds digitally.
• There’s a large minimum deposit requirement for CDs. At the time of writing, you can only get a CD if you deposit $2,500 or more.  

Live Oak Bank Reviews

Now, let’s look at some Live Oak Bank reviews that customers have left on Trustpilot.

One person left a 5-star review saying they have three accounts with Live Oak Bank. That’s how much they like it! They also said that the customer service is “top notch.” 

In a 4-star Live Oak Bank review, someone said the website is “convenient and easy to use.” That’s especially important since this is an online bank.

Another customer left a 3-star review. They liked the bank enough to open five accounts, but they found certain aspects of the online banking experience to be “kludgy.”

While most reviews are positive, I did find a few serious complaints. One customer left a 1-star Live Oak Bank review that accused the bank of holding their money. 

A representative from Live Oak Bank responded on Trustpilot by saying it was a security issue that they were trying to resolve. That might not please the angry customer – but at least it’s good to know that the bank takes security seriously.

Live Oak Bank Reviews Reddit

I found a Reddit thread where someone asked about other people’s experiences with Live Oak Bank. 

This person was a business owner – but the thread is relevant for personal banking customers, too. After all, the main goal here is to know what it’s like to be a customer of Live Oak Bank. 

One person responded with a positive Live Oak Bank review, saying they’d been using the bank for almost 2 years and had no complaints.

Another Live Oak Bank customer said they liked the accounts, but they didn’t like the app.

Someone else praised Live Oak Bank for its competitive interest rates. 

Live Oak Bank Reviews BBB

The Better Business Bureau (BBB) gives Live Oak Bank a C- grade. The grade is based on several factors, including an analysis of Live Oak Bank’s complaint history.

But it’s not like there are thousands of negative reviews piling up. In fact, the BBB only reports four complaints about Live Oak Bank in the past 3 years. 

So, while that C- grade isn’t ideal, it doesn’t mean you should avoid Live Oak Bank altogether. 

Is Live Oak Bank Worth It?

Live Oak Bank is definitely worth it if you’re looking for a trustworthy online bank that offers competitive yields. 

While anyone can open an account with Live Oak Bank, it’s an especially attractive option for business owners. You can open a savings account or CD in your business’s name – allowing your business to earn interest on its savings!

Don’t have a business? Live Oak Bank is also a solid option for personal banking.

Online banks often have excellent interest rates, and Live Oak Bank is no exception. That means your savings will grow at a decent pace. 

And thanks to the bank’s FDIC backing, you’ll know your money is safe.

Commonly Asked Questions About Live Oak Bank

What are Alternatives to Live Oak Bank?

Here are some reliable online banks that are similar to Live Oak Bank:

• Chime
• Quontic Bank
• Varo
• Upgrade
• CIT Bank
• Revolut
• Current
• Fierce
• Dave
• Albert
• Cleo
• Raisin
• Ally

And to learn which budgeting app could best help you manage your finances and boost your savings, check out these comparisons of Rocket Money vs the competition:

• Rocket Money vs YNAB
• Rocket Money vs Simplifi
• Rocket Money vs Copilot

Then use a net worth tracker to see how your new financial strategies are paying off. 

Is Live Oak Bank a Scam?

Live Oak Bank definitely isn’t a scam. It’s a legitimate online bank and a member of the FDIC. That means the accounts are federally insured up to $250,000.

What is The Catch With Live Oak Bank?

The closest thing to a “catch” with Live Oak Bank is that there are no physical branches. The entire operation is online, so you’ll have to manage your account through the website or the mobile app.

Live Oak Bank Interest Rates?

Live Oak Bank has super competitive interest rates on savings accounts and CDs. And with savings accounts, you don’t have to reach a minimum balance requirement for the highest rate to take effect. 

Is Live Oak a Legit Bank?

Live Oak Bank is definitely a legitimate bank. It’s a member of the FDIC, and its parent company (Live Oak Bancshares) is even traded on the New York Stock Exchange.

Is Money Safe With Live Oak Bank? 

Your money is safe with Live Oak Bank because the bank is a member of the FDIC. That means your first $250,000 is federally insured. Even if the bank were to go bankrupt, the government would return your money. 

What is Live Oak Bank Known For?

Live Oak Bank is known for being an excellent online bank for businesses. You can use the bank for small business loans, savings accounts, and even CDs. It’s also available for personal banking. 

Who Owns Live Oak Bank?

Live Oak Bank’s parent company is called Live Oak Bancshares. It’s a legit corporation with headquarters in Wilmington, NC.