Money Analysed

The Ultimate Guide to Live Oak Bank: Your Business Banking Partner

Live Oak Bank: The Business Bank for Americas Small Business Owners

If you are a small business owner looking for a reliable banking partner, let us introduce you to Live Oak Bank. With its online-only approach, Live Oak Bank has become a go-to institution for small businesses in need of personalized banking services and financial support.

In this article, we will dive into what Live Oak Bank has to offer, focusing on its mission, products, and services, and highlighting its business checking account. What is Live Oak Bank?

Live Oak Bank is an online-only bank that was founded in 2008 to focus on small business lending. It is headquartered in Wilmington, North Carolina, and has no physical branches.

Instead, all banking operations are conducted digitally, offering clients the convenience of banking from anywhere. Despite being a smaller institution focusing on small business lending, Live Oak Bank has a reputation for being a top Small Business Administration (SBA) and United States Department of Agriculture (USDA) lender.

Mission: America’s Small Business Bank

As an online-only bank, Live Oak Bank operates as a digital partner to small businesses across America. Its mission is to help small business owners succeed by providing them with access to affordable financial products and personalized services.

The bank has become a trusted institution for small business lending as it offers unique financing options tailored to suit a variety of small businesses across different sectors.

Products and Services

Live Oak Bank provides a variety of customer-friendly financial services for individuals and small businesses. It offers personal savings accounts, business savings accounts, Certificates of Deposit (CDs),

Insured Cash Sweep accounts, and business checking accounts.

All the banks accounts come with competitive rates and minimal fees, making it an attractive option for businesses seeking to grow their savings. For businesses in need of financing, Live Oak Bank offers term loans, Small Business Administration (SBA) loans, and USDA business loans.

Live Oak Bank lends up to $5 million, offering loans that have competitive rates and flexible terms. The banks lending team is made up of experienced professionals capable of crafting financing that meets the unique needs of different small businesses.

Live Oak Bank Business Checking Account

Live Oak Banks business checking account is designed specifically for small businesses, with features and benefits that cater to their unique banking needs. It provides business owners with a fast, easy, and secure way of managing their finances.

Account Details

The

Live Oak Bank Business Checking Account comes with features such as Mastercard-branded debit cards, access to over 55,000 surcharge-free ATMs in the AllPoint Network, and a daily purchase limit of up to $5,000. Business owners can also withdraw up to $1,000 per day at ATMs, which is a useful benefit for businesses that require quick access to cash.

Drawbacks

However, there are a few drawbacks to consider when using Live Oak Banks business checking account. For example, it does not offer paper checks or cash deposits.

This limitation might pose a challenge for businesses that regularly handle cash transactions or prefer to use checks for some transactions.

Conclusion

Live Oak Bank is a modern digital banking institution that caters to the unique financial needs of small businesses. Its online-only approach provides small businesses with affordable financial products and personalized services, while its team of experienced professionals guarantees customized financial products and services that tailor to specific business needs.

The business checking account is one of the banks standout products, with features and benefits that cater specifically to small business owners. While it has some limitations, the benefits of using Live Oak Banks business checking account make it worth considering for small businesses in need of convenient and affordable banking.

3) Live Oak Bank Business Savings Account

Having a reliable business savings account is essential for any small business. It not only helps to keep funds separate from your personal accounts, but it also ensures that you are earning interest on your balances.

Live Oak Bank offers businesses such an account with flexible terms and rates that can help you achieve your savings goals.

Account Details

Live Oak Banks business savings account comes with a low monthly maintenance fee, making it an affordable option for businesses of all sizes. The account is also FDIC-insured up to $250,000, which means that it is backed by the full faith and credit of the United States government.

The business savings account is also high-yield, making it an attractive option for businesses looking to maximize their earnings. The interest rate is competitive, and the accounts funds accrue interest daily and are compounded monthly.

This means that you earn interest on your principal plus any accumulated interest. However, the account also comes with fees such as stop payment fees and dormant account fees, so it is essential to read the terms and conditions carefully before opening an account.

Insured Cash Sweep

Live Oak Banks business savings account also comes with the

Insured Cash Sweep (ICS) program. This program allows businesses to maximize their FDIC insurance coverage up to $10 million, ensuring that their funds are adequately protected.

The ICS program is designed to help businesses earn interest on deposits placed with a network of multiple banks. The program automatically places deposit funds into demand deposit accounts or savings accounts at other banks in the IntraFi Network, which range from small institutions to some of the largest banks in the country.

This program helps businesses with large cash deposits by distributing their deposits in excess of the FDIC limit to multiple banks in the network. It is a secure way of protecting your funds, as well as ensuring that you earn interest on your deposits.

4) Live Oak Bank CDs

Live Oak Bank also offers Certificate of Deposit (CD) accounts for businesses that want a secured investment option. These accounts guarantee a fixed interest rate for the CD’s term, which can range from six months to five years, making it an ideal option for businesses looking for long-term investments.

Account Details

Live Oak Banks CDs have an account minimum of $2,500. After opening an account, you can select your interest disbursement preferences, such as transferring interest to another Live Oak Bank account or disbursement by check.

The bank also offers automatic renewals of your CD account, which means that you do not need to worry about the CD maturing and losing your interest rate. You can choose to have your CD automatically renewed for the same term or opt for a different term.

However, early withdrawal penalties apply for withdrawing funds before the CD matures, which may reduce the amount of interest earned on the CD.

Interest Rates

Live Oak Bank offers competitive rates on its CDs, which vary, depending on the term of your CD. The interest rate for a six-month CD is currently 0.25% APY, while one-year CDs offer 0.50% APY.

Two-year CDs apply an interest rate of 0.65% APY, while three-year CDs offer 0.70% APY. Four-year CDs apply an interest rate of 0.75% APY, while the five-year CDs offer 0.80% APY.

Conclusion

Live Oak Bank offers a variety of financial products and services for small businesses, including business savings accounts, CDs, business checking accounts, and business loans. Its online-only approach provides businesses with affordable financial products and personalized services, while its team of experienced professionals guarantees customized financial products and services tailored to specific business needs.

The business savings account and CDs are some of the banks standout products, with flexible terms and rates that can help businesses achieve their financial goals. With competitive interest rates and flexible CD terms, Live Oak Bank is an excellent option for businesses that want to invest in their financial futures.

5) Live Oak Bank Mobile Apps

Live Oak Bank offers mobile banking apps that allow its customers to bank on the go. The banks mobile apps are available for both iOS and Android devices and are designed to provide users with a convenient and secure way of managing their finances.

App Ratings

The Live Oak Bank mobile apps have received high ratings on both the App Store and Google Play Store. The iOS app has an average rating of 4.5 stars, while the Android app has an average rating of 4.3 stars.

Users have noted that the app is easy to use and navigate, with many praising the banks customer service and the apps overall functionality.

Customer Feedback

While Live Oak Banks mobile apps have received mostly positive feedback, some users have reported glitches and bugs. These issues, which can range from login problems to transactions not being recorded, can be frustrating for users.

However, the banks customer service team is known for providing prompt and helpful assistance in resolving these issues. Overall, Live Oak Banks mobile apps are an excellent option for businesses that value convenience and quick access to banking services.

6) Alternatives to Live Oak Bank:

Axos Bank and

Grasshopper

While Live Oak Bank offers attractive financial products and services for small businesses, there are other banking options worth considering depending on your needs. Two potential alternatives to Live Oak Bank include

Axos Bank and

Grasshopper.

Axos Bank

Axos Bank is an online-only bank that offers a variety of business banking products and services. Its business money market account, for example, offers an attractive interest rate that can help businesses maximize their earnings.

The bank also offers a business checking account that has no monthly maintenance fees and a variety of other features, including unlimited domestic ATM fee reimbursements.

Axos Bank’s interest rates are also competitive, making it an excellent option for businesses seeking long-term investments.

Grasshopper

Grasshopper is a digital-only bank that offers a business checking account with unlimited transfers and no monthly fees. It also offers an appealing interest rate for businesses seeking to save on their deposits.

Grasshopper’s initial deposit requirement is low, making it a perfect option for businesses that want to start banking right away without having to commit a significant amount of funds.

Conclusion

While Live Oak Bank offers a comprehensive range of financial products and services, businesses should consider alternative options depending on their unique needs.

Axos Bank and

Grasshopper both offer competitive rates, low fees, and online-only banking services that cater to businesses looking for convenient and flexible banking options.

Ultimately, the decision of which bank to use depends on a businesss specific needs and priorities.

7) How to Get Started with Live Oak Bank

Signing up for an account with Live Oak Bank is a straightforward process. Here are the necessary steps you need to take to get started:

Steps to Sign Up

1. Gather your personal information, including your full name, address, phone number, email address, and birthdate.

2. Gather your social security number and any necessary business information, such as your organization’s article of organization documents and business EIN.

3. Complete an online application by providing your personal and business information.

4. Upon submitting your application, you will be asked to verify your identity by providing extra information.

5. Link an external bank account and initiate funding of your account.

6. Identify authorized signers for your business account.

7. Wait for the bank to review your application and approve your account.

Necessary Documents

To complete the application process for any Live Oak Bank account, you will need to provide your full name, address, phone number, email address, and birthdate, as well as your external bank account’s routing number and other necessary business information such as your article of organization document and business EIN.

8) FAQs about Live Oak Bank

Reputation

Q: Is Live Oak Bank a reputable bank? A: Yes, Live Oak Bank is a reputable institution.

It is FDIC-insured, which means that it meets rigorous standards regarding financial stability and customer protection. The bank has also received positive feedback from its customers, who praise its competitive interest rates and low account maintenance fees.

Q: Does Live Oak Bank offer personal accounts in addition to its business accounts? A: Yes, Live Oak Bank offers both personal and business accounts, including personal savings accounts and personal CDs.

Importance of a Business Savings Account

Q: Why is having a business savings account important in addition to a business checking account? A: A business savings account can help protect your personal assets by keeping them separate from your business finances.

Additionally, many business checking accounts come with monthly transaction limits and account fees, making a business savings account a valuable tool for long-term savings.

Minimum Balance Requirements

Q: Does Live Oak Bank require a minimum balance for its accounts? A: Live Oak Bank does not require a minimum deposit to open an account.

However, certain accounts may have minimum balance requirements to avoid monthly maintenance fees, and some accounts may have fees for cancelation. Make sure to review the terms and conditions carefully before opening an account.

Conclusion

Signing up for a Live Oak Bank account is an easy and straightforward process that entails providing your personal and business information, setting up external links, and awaiting approval. Live Oak Bank has a solid reputation as an FDIC-insured, reputable institution that offers both personal and business accounts with competitive interest rates and low account maintenance fees.

Business savings accounts are essential for any small business owner looking to grow their savings while protecting their personal assets, and Live Oak Banks accounts are a great option for this purpose. Finally, there are no minimum deposit requirements when opening an account with Live Oak Bank; however, each account may have specific monthly balance fees and cancelation fees, which are essentials to understand when opening an account.

This article provides a comprehensive overview of Live Oak Bank’s offerings, including its mission, products, and services, as well as a detailed review of its business savings accounts, CDs, and mobile apps. The article also covers alternative banking options, such as

Axos Bank and

Grasshopper, and offers tips on how to sign up for a Live Oak Bank account.

It highlights the importance of financial services, such as business savings accounts, for small businesses, and emphasizes the significance of reading the terms and conditions before opening an account. The article underscores Live Oak Bank’s reputable status as an FDIC-insured institution with competitive rates and low fees, positioning it as a top choice for small businesses.

Ultimately, the article provides valuable insights and takeaways for businesses looking to maximize their savings and streamline their banking operations.

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