Live Oak Bank Business Savings Account 2024 Review
Finding the best business savings account isn't easy as each bank usually has at least one option to choose from.
To help you decide if the Live Oak Bank Business Savings account may be a good fit for your company, we’ve reviewed it below. Here’s what you should be aware of before opening a Live Oak Bank Business Savings account.
As long as you don’t need access to a bank branch, Live Oak Bank’s Business Savings Account is a strong contender for a business savings account for most companies. The bank’s high interest rate and minimal fee schedule provide ideal conditions to save money for future needs.
Businesses that need access to in-person help or cash deposits may need to look at alternatives as Live Oak Bank does not offer these features.
Live Oak Bank Business Savings Account Pros & Cons
Compare Best Business Bank Accounts Available Now
Find the best business accounts to manage your business funds better and improve your bottom line:
Compared to Other Business Savings Accounts
Chase Business Total Savings
The Chase Business Total Savings account is best suited for businesses already banking with Chase, offering benefits like a large branch network and business tools integration, with FDIC insurance. However, it's less attractive for businesses outside the Chase ecosystem due to a low interest rate and a monthly fee, which can be waived under certain conditions. For those seeking higher interest earnings, online business savings accounts may be a better option.
Read the full review of the Chase Business Total Savings account.
Wells Fargo Business Market Rate Savings
The Wells Fargo Business Market Rate Savings account is suitable for businesses already banking with Wells Fargo, providing a low minimum opening deposit and check-writing ability. However, its major drawbacks include a very low interest rate and a monthly service fee that can be waived under certain conditions.
Read the full review of Wells Fargo Business Market Rate Savings.
Bank of America Business Advantage Savings Account
The Bank of America Business Advantage Savings Account is designed for existing Bank of America business clients seeking convenience in banking, featuring access to a large branch network and FDIC insurance, despite its low interest rates. There is a monthly fee, with possible waivers.
Read the full review of the Bank of America Business Advantage Savings Account.
Monthly Maintenance Fee
The Live Oak Bank Business Savings account doesn’t charge a monthly maintenance fee. Most other banks charge this fee unless you maintain a minimum balance in the account.
Monthly Deposit Limits
You aren’t limited to the number of free deposits you can make into your account during a month. All deposits are free.
Cash Deposit Limits
As an online bank, Live Oak does not accept cash deposits. Most traditional banks accept a certain amount of cash deposits per month for free. Then, they charge a fee for additional cash deposits.
Not accepting cash deposits can be a deal breaker if your business heavily relies on cash.
Interest Rates
The Live Oak Bank Business Savings account offers some of the best interest rates for business savings accounts, even among online business savings accounts. This is much higher than most traditional banks offer for interest.
Additionally, you may have the opportunity to earn a deposit bonus by opening a new account and depositing a certain amount in the account within a specific period.
Other Account Fees
Live Oak Bank doesn’t charge many fees for its business savings account product. Here are the fees you may run across with this bank.
Other Service Fees - Live Oak Bank Business Savings Account
| Type | Fee |
|---|---|
| Stop payment fee | $25 |
| Returned item fee | $10 |
| Legal actions (tax levy, garnishment, etc) | $50 minimum |
| Outgoing wire transfer | $19 |
| Dormant account fee | For accounts with less than $10.01 and 24 months of no activity, a fee is charged and your account is closed |
Account Access and Management
Live Oak Bank features customer service based in North Carolina. This means you won’t have to deal with overseas call centers when you need help with your account.
Live Oak Bank’s deposits are FDIC-insured up to insurance program limits. If you use their insured cash sweep, your deposits can be insured by more than traditional limits of up to $10 million. This is because they store your money in different banks that each have FDIC coverage.
Live Oak Bank’s accounts can be integrated with QuickBooks to make your business’s accounting easier.
You can access your account online or through a mobile app. Mobile check deposit is also supported, up to applicable limits.
How to Open
Opening a Live Oak Bank Business Savings Account is a straightforward online process. You’ll need personal information for authorized signers, information about the business, and bank account information.
Live Oak Bank doesn’t specify the exact information needed, but it may include:
- Social Security numbers
- Date of birth
- Proof of identity
- Business formation documents
- Business registration documents
- Information about the business start date, revenue, employees, etc
Live Oak Bank supports the following business types:
- Corporation
- Limited liability corporation
- Sole proprietorship
- Partnership
- Limited partnership
- Professional corporation
- Association
- Non-profit
How to Choose the Right Business Savings Account
There is no best business savings account for every company. Instead, a business needs to understand its needs and priorities to successfully choose the right business savings account.
Start by considering what features your company needs in a savings account. Then compare that list of needs and features to your account options.
Here are a few priorities many businesses may consider in their search.
Interest rate
The interest rate a savings account pays is often a top priority when choosing an account. The higher the rate is, the more your business’s money can grow while sitting in the account.
FDIC or NCUA insurance coverage
You should make sure the account you choose offers FDIC or NCUA insurance for your funds. These programs offer insurance up to program limits. Insurance is often separate for businesses and personal accounts unless you operate as a sole proprietorship.
Some banks can sweep your money into several accounts at different banks to increase insurance coverage. If your deposits exceed insurance limits, you should bank with an extremely stable bank to minimize risk.
Monthly maintenance fees
While not ideal, it’s normal for banks to charge monthly maintenance fees on business checking and business savings accounts. Look for an account that doesn’t charge this fee type or one that allows you to easily get the fee waived based on your circumstances.
Minimum balance requirements
You may be able to get a maintenance fee waived by maintaining a minimum balance in an account. The amount required and calculation method of the minimum balance likely varies by bank.
Transaction limits and excess transaction fees
Withdrawals from business savings accounts are usually capped. However, some banks take it one step further and limit free monthly deposits. Exceeding the limit results in fees for each additional deposit.
Cash deposit limits and excess cash deposit fees
Free monthly cash deposit limits may also exist. If you deposit more than these limits allow, you likely have to pay a fee for each $100 of cash you deposit.
Physical bank locations and hours
If you’re considering traditional banks with branches, look for a bank with convenient locations close to your business with reasonable operating hours.
Other products
Your business may be shopping for a suite of banking needs. In these cases, a checking account or loan may take priority over the features of a savings account.
Once you find the bank for your other needs, consider whether opening a less-than-ideal savings account at the same bank is worth the simplicity of having all of your accounts at the same bank.
