Live Oak Bank Business CDs: Lock In Up to 4.10% APY for Your Company

If you're looking to stash some business cash where it can earn a solid return without any market risk, Live Oak Bank's business CDs are worth a serious look. They've just bumped up their rates, and right now you can grab an APY of 4.10% on a 12-month term. That's a pretty sweet deal for a fixed-income product, especially when you consider the current rate environment. Let's break down what's on offer and whether it's the right move for your company.

What's the Deal?

Live Oak Bank, which has been around since 2008, is known for its small business lending, but they also offer a range of deposit products. Right now, their business CDs are paying some of the highest rates we've seen in a while. For a 12-month CD, you can earn 4.10% APY. If you prefer a shorter commitment, the 9-month pays 4.00%, and the 6-month and 18-month both pay 3.90%. Even the longer terms—24, 36, 48, and 60 months—are at 2.00% APY, which is still better than many brick-and-mortar banks. The catch? You'll need at least $2,500 to open one, and the max you can put in is $250,000.

These rates are current as of June 1, 2026, and they're subject to change, so if this sounds appealing, you might want to act sooner rather than later. But remember, CD rates are fixed, so once you lock in, you're guaranteed that rate for the entire term, no matter what the market does.

Why Live Oak Bank?

You might be wondering if Live Oak Bank is a safe place to park your business's money. The good news is that they're FDIC insured, so your deposits are protected up to the legal limit. They also have an A+ health rating, which is a strong indicator of financial stability. Plus, they're one of the top originators of small business loans in the country, so they understand the needs of business owners.

One of the standout features is the automatic monthly interest payment. That means you don't have to wait until maturity to see your money grow—you'll get interest paid out every month. That can be a nice cash flow boost for your business. And if you need to manage the account online, you can do that easily, including adding authorized signers and setting renewal preferences.

Before You Jump In: Watch Out for the Penalties

Like any CD, there's an early withdrawal penalty if you need to access your funds before the term ends. For CDs with a term less than 24 months, the penalty is 90 days of simple interest. For terms of 24 months or longer, it's 180 days of simple interest. That's pretty standard, but it's worth keeping in mind. If there's any chance you might need that money before the CD matures, you might want to consider a shorter term or a no-penalty CD instead.

Also, note that the maximum deposit is $250,000. If you have more than that to invest, you might need to spread it across multiple banks or consider other options. And while the rates are competitive, always compare with other offers to make sure you're getting the best deal for your situation.

Bottom Line

• Live Oak Bank's 12-month business CD offers 4.10% APY, which is among the highest available right now.
• The minimum deposit is $2,500, and the maximum is $250,000, making it accessible for most small businesses.
• Early withdrawal penalties apply: 90 days of simple interest for terms under 24 months, 180 days for longer terms.
• FDIC insurance and an A+ health rating provide peace of mind.
• Rates are current as of June 1, 2026, and are subject to change.

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