Our Take
5.0
NerdWallet rating
The bottom line:
Live Oak’s online business checking account lacks the bells and whistles of its competitors, but the bank’s high-yield business savings account shines with a high APY and no minimum balance requirement.
Live Oak Bank Business Savings
Checking
Member FDIC
APY
3.80% With $0.01 min. balance for APY
Bonus
$400 Requirements to qualify
Learn more
at Live Oak Bank, Member FDIC
Pros & Cons
Pros
- Industry-leading APY.
- No minimum balance to earn interest.
- No monthly fee or minimum deposit.
- Access up to $10 million in FDIC insurance with Insured Cash Sweep.
Cons
- No ATM or debit card access.
- No weekend customer support.
Full Review
While this review covers Live Oak business checking and savings accounts, the star rating above refers to the business savings account only.
Live Oak Bank offers standout business banking products, including a trio of business checking accounts, a top-rated business savings account and a selection of business CDs (the 12-month term earns
4.30%
APY). On top of that, Live Oak has a robust business lending program and is one of the most active lenders in the SBA’s 7(a) loan program.Live Oak Business Savings
Live Oak Bank Business Savings
is the real star of the show. This high-yield business savings account earns 3.80%
annual percentage yield (APY) — one of the best rates out there — and interest compounds daily to give you the best return on your savings. There is no monthly fee or minimum balance to start earning interest. Business savings customers can also opt into the Insured Cash Sweep program, though doing so will drop your APY to 3.65%.This account is also offering a bonus:
Earn $400 bonus with a minimum $30,000 deposit amount, hold for 90 consecutive days. Customers must open a new account; one bonus per legal entity. Account must be funded from an external account. Terms apply. Offer expires 10/31/2024.
Live Oak Business Checking
Live Oak offer three business checking accounts: Business Essential, Business Plus and Business Plus Analysis Checking. Monthly fees range from $10 for Essential to $100 for Business Plus Analysis. Those fees can be waived if you hit certain balance thresholds or qualify for earnings credits (Analysis only).
These accounts lack some of the bells and whistles offered by other online business checking accounts. You won't get tax-planning tools or integrations with business apps beyond QuickBooks. What you will get: Access to up to $10 million in FDIC insurance coverage via the bank's Insured Cash Sweep services (Business Plus and Analysis only).
Live Oak customers also get easy access to customer support (yes, you can talk to an actual human). That sets Live Oak apart from many other online banks, which often default to chatbots or an email alias for support. Live Oak's North Carolina-based support team is available from 8 a.m. to 8 p.m. ET Monday through Friday.
Live Oak Bank (Business)
Live Oak Bank Business Essential Checking
NerdWallet Rating
4.2
Read Review
Learn more
at Live Oak Bank, Member FDIC
Live Oak Business CDs
Live Oak has multiple options for business certificates of deposit, with terms ranging from three months to two years. But the best rate is currently the
Live Oak Bank 12 Month Business CD
, which earns 4.30%
APY and is high on our list of best business CD rates. All Live Oak business CDs require a minimum deposit of $2500
and receive monthly interest disbursements.Live Oak Bank (Business)
Live Oak Bank 12 Month Business CD
APY
4.30%
Read Review
Learn more
at Live Oak Bank, Member FDIC
Live Oak business banking is best for small business owners who:
- Want a high-yield business savings account or CD.
- Need a simple business checking account (and don’t need to deposit cash).
- Want an Insured Cash Sweep account to maximize savings and FDIC insurance coverage.
🤓 Nerdy Tip
Want access to weekend support? Consider American Express Business Checking, which offers 24/7 phone support.Live Oak business checking and savings at a glance
Live Oak Bank Business Savings | Live Oak Bank Business Essential Checking | Live Oak Bank Business Plus Checking | |
Monthly fee | $ 0 . | $10, waived with average daily balance of $1,000. | $25, waived with average daily balance of $25,000. |
Minimum opening deposit | $0. | $0. | $0. |
APY | 3.80% . | None. | None. |
Transactions | Unlimited. | Unlimited. | Unlimited. |
Bonus | $ 400 . | None. | None. |
How to open a Live Oak business account
Live Oak business checking and savings accounts are open to all business entity types, including nonprofits and associations. Most Live Oak business accounts are opened entirely online, though businesses interested in opening an Insured Cash Sweep account need to work directly with a business banker.
What you need to open an account
- Personal information: Name, address, date of birth, Social Security number, and driver’s license or government-issued photo identification.
- Business information: Business name, address, phone number and website, as well as your tax identification number (EIN or SSN for sole proprietors), business structure, industry, annual revenue, number of employees and years in business.
- Business documentation: Articles of incorporation or other relevant business formation documents.
Live Oak’s business account application is more involved than that of other online banks. In addition to providing basic business information, you’ll also need to answer questions about how the account will be used (credit card processing, general operating funds, savings, etc.), the services you provide, and the account features you intend to use — including the number and amount of monthly mobile deposits, wire transfers and other services your business currently uses.
Once your application is approved, you can open your business account. You’ll need to link an external bank account to fund your new account.
Where Live Oak business banking stands out
Industry-leading APY on business savings: Live Oak’s business savings account is the standout account of this business bank. Account holders earn
3.80%
APY on all balances, with no monthly fee or minimum balance required to start earning interest. That’s well above the national average for savings accounts (0.46% APY as of this writing, according to the FDIC) and easily bests other business savings accounts.Want a higher yield? Live Oak also offers a 12-month business CD that earns
4.30%
APY and has a $2500
minimum balance to open.Easy access to phone support: Live Oak puts a premium on customer support and account holders can easily reach a Live Oak rep by phone (Monday through Friday, 8 a.m. to 8 p.m. ET). That's a departure from other online business banks that steer customers to email or in-app chat when issues arise, even when phone support is offered.
Up to $10 million in FDIC insurance coverage: Live Oak business savings customers can access up to $10 million in FDIC coverage through the bank’s Insured Cash Sweep service, which distributes funds across a network of FDIC-insured banks to maximize protection and reduce the need for multiple business accounts. This is a great option for businesses with more than $250,000 in savings (the standard FDIC insurance limit). Business Plus and Business Plus Analysis checking customers can also opt into Live Oak's sweep program.
There’s no additional fee to open a sweep account — a departure from some other banks — and all funds are still managed and accessed through your Live Oak account. However, some transactions will need to go through your dedicated Live Oak business banker rather than the bank’s website or mobile app.
Lender relationship: You don’t need to have a Live Oak business account to apply for a small-business loan from the bank. But building that relationship may be useful if you need funding in the future. Live Oak Bank is one of the best SBA lenders, as it routinely tops the list of most active lenders by dollar amount for low-interest, long repayment term 7(a) loans.
Where Live Oak business banking falls short
No cash deposits: Live Oak doesn’t support cash deposits, making the bank’s business checking account a no-go for cash-heavy businesses. Need an option to deposit cash? The NBKC Business Account and Relay Business Banking both offer fee-free cash deposits at select ATMs. These online banks also offer high-yield business savings options, though the interest rates don’t match that of Live Oak’s stellar savings account.
Limited integration with business apps: Live Oak customers can connect their business checking accounts to QuickBooks, but that’s about it. The lack of easy integration with other business apps can make Live Oak checking feel more like it’s from a brick-and-mortar bank than an online bank.
Want more tools from your business account? Consider Lili Business Checking. Lili Pro ($15/month) includes tax planning and expense management tools. You can also connect your account to a number of business apps, including PayPal, Stripe, Square, eBay, Cash App and Venmo. Lili Pro customers can get payments up to two days faster (direct deposits, ACH and transfers from connected accounts). They also get a high-yield business savings account that currently earns 4.15% APY.
Longer hold on funds for new customers: Avoid depositing all of your business’s assets at once when you open a new Live Oak account. Why? Checks deposited by new customers (accounts open fewer than 30 days) are held for five business days.
Guaranteed funds, like cashier’s checks, certified checks or government checks, have a shorter hold time — just one business day — but only up to $5,525. Anything beyond that threshold is held for five business days.
Even after the first 30 days, depositing more than $5,525 in checks on one day can trigger an extended hold. While banks often place a hold on checks for new accounts as a fraud prevention method, Live Oak’s policy is among the more unforgiving and inconvenient for small-business owners.
Poorly rated mobile app: An online-only bank should have a stellar mobile app. Live Oak falls short of that bar. Reviews of Live Oak’s app on iOS and Android consistently cite issues with mobile check deposit — a key feature for small-business owners — and other glitches that limit the usefulness of Live Oak’s mobile app.
Learn more
at Live Oak Bank, Member FDIC
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