The latest institution to increase the rate on a savings account is Live Oak Bank, which added 15 bps to its Savings Account (2.25% APY) yesterday. With no minimum opening deposit requirement or minimum balance requirement, the 2.25% APY applies to all balances up to $5 million.
Throughout 2017 and for first part of 2018, the Savings Account APY was within reach of the rate leaders, but that scenario has changed. 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, Live Oak Bank has added a total of 75 bps since January 2018, while PurePoint Financial has added 95 bps to its Savings Account (currently 2.35% APY) in that same time. Compounding the rate gap issue are new internet bank savings accounts, which have debuted with APYs above 2.00% APY.
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 reader, Percussed, for the Forum post about Live Oak Bank’s Savings Account rate increase.
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, an 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 minimum balance requirements of $1k or lower, and are nationally available, Live Oak Bank’s Savings Account APY ranks sixth.
|Interest Rate||Account Name||Credit Union/Bank|
|2.40% APY||MySavings Account (no min)||MySavingsDirect|
|2.39% APY||Agility Savings (no min)||CIBS USA|
|2.35% APY||High Yield Online Savings Account ($100 min)||Vio Bank|
|2.30% APY||High Dividend Savings ($500 min)||USALLIANCE Financial|
|2.27% APY||Online Savings (no min)||MutualOne Bank|
|2.25% APY||Savings Account (no min)||Live Oak Bank|
The above rates are accurate as of 1/11/2018.
To compare the top Savings account rates, both nationwide and state specific, please refer to our Savings Account Rates Table page.