Live Oak Bank offers a wide variety of certificate of deposit (CD) terms ranging from six months to five years. Because the CDs are only available online, Live Oak is able to offer very competitive interest rates compared to the best CD rates out there. However, the minimum deposit requirement of $2,500 is one of the highest we’ve seen. This could be a deterrent for savers who aren’t looking to put down that kind of money.
Furthermore, interest on all Live Oak CDs compounds monthly instead of every day. While often minimal, this does make a difference in how much interest you earn over the course of your term.
Live Oak has its headquarters in Wilmington, North Carolina, as well as offices in Florida, Georgia, and California. It doesn’t, however, have any branch locations, so essentially all banking is done online.
To calculate how much interest you could earn with a CD, try using SmartAsset's CD calculator.
Live Oak Banking Company CD
| Term Length | Minimum Deposit | APY | |
| 3 Month | $2,500 | 3.00% | Compare CD Rates |
| 6 Month | $2,500 | 4.80% | Compare CD Rates |
| 9 Month | $2,500 | 4.90% | Compare CD Rates |
| 12 Month | $2,500 | 5.00% | Compare CD Rates |
| 18 Month | $2,500 | 4.75% | Compare CD Rates |
| 24 Month | $2,500 | 2.00% | Compare CD Rates |
| 36 Month | $2,500 | 2.00% | Compare CD Rates |
| 48 Month | $2,500 | 2.00% | Compare CD Rates |
| 60 Month | $2,500 | 2.00% | Compare CD Rates |
6-Month CD Interest Rate Comparison
Overview of Live Oak CD Rates
Given that Live Oak offers seven different CD term lengths allows you to find the term that most aligns with your financial goals. It’s also helpful if you’re looking to set up a CD ladder, in which you simultaneously purchase multiple CDs with varying maturity dates. However, the high minimum deposit requirement means you’ll have to invest several thousand dollars to construct a proper ladder.
If you find that you need part or all of your principal back before your CD’s maturity date, you’ll be forced to pay an early withdrawal penalty. The size of that penalty will depend on the term length of your CD. For a CD of 24 months or fewer, you’ll pay 90 days of interest. So, if you invested $2,500 in a six-month CD and you withdraw your principal after three months, you would face a penalty of $11.61.
For a CD of more than 24 months, the penalty for early withdrawal is 180 days of interest. So, if you invested $5,000 in a 36-month CD and you withdraw your principal after 12 months, you would face a penalty of $36.57.
These penalties do not apply to interest you earn on top of your principal, meaning you’re free to withdraw the interest you earn each month without the risk of penalty. After your CD reaches its maturity date, you will have a grace period of 10 days to withdraw your funds or deposit them in a different CD. If you do nothing, the bank will renew you for a new CD of the same term length.
How Much You Earn With Live Oak Certificates of Deposit Over Time
The competitive rates of Live Oak CDs give your money a serious chance to grow during the term of your CD. Live Oak CDs compound interest every month, as opposed to every day like many high-rate CDs. This means you can’t earn quite as much interest, but for most terms and deposits, the difference is less than a dollar. As with most CDs - and most investments for that matter - you will earn more interest with larger investments and longer-term lengths.
If you’d like, you can opt for monthly interest disbursements for no additional fee. Doing so, however, would ultimately reduce your earning potential since you would lose the ability to gain interest on your interest.
| Initial Deposit | 6 Month CD | 36 Month CD | 60 Month CD |
| $2,500 | $2,559.30 | $2,653.02 | $2,760.20 |
| $5,000 | $5,118.59 | $5,306.04 | $5,520.40 |
| $10,000 | $10,237.19 | $10,612.08 | $11,040.81 |
Compare Live Oak Bank to Other Competitive Offers
How Live Oak CD Rates Compare to Other Banks'
CD rates at Live Oak are competitive with those at just about any other bank out there, whether online or brick-and-mortar. It edges out Ally Bank on the 12 month CD option. For a 60-month term, however, the Live Oak rate is more than double the Capital One rate. When compared to big banks like Chase, it’s no contest across the board.
Note that the rates listed below are assuming a $2,500 initial deposit.
| Term Length | Live Oak CD | Ally Bank CD | Capital One CD | Chase CD |
| 6 Month | 4.80% | 4.75% | 4.25% APY (as of 4/11/24) | 0.01% |
| 12 Month | 5.00% | 4.50% | 5.00% APY (as of 5/9/24) | 0.01% |
| 60 Month | 2.00% | 3.90% | 3.90% APY (as of 4/11/24) | 0.01% |
Should You Get a Live Oak CD Account?
Live Oak CD rates are hard to beat, especially for their shorter term lengths. If you’re comfortable banking online and don’t mind an initial investment of $2,500 or more, then a Live Oak CD could be right up your alley. You can set up your account online in very little time, and you can monitor your deposit with the Live Oak mobile app.
If you are looking for an in-person banking experience or you’re looking to deposit less than $2,500 in your CD, then you might be better served to look elsewhere.
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