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Financial Rates:
5.0
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Customer Service:
5.0
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Variety of Terms:
4.0
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Opening Required Amount:
5.0
Pros:
- Low opening required amount
- Good variety of CD terms offered
- Competitive interest rates on CDs
- Can open accounts online
Cons:
- No CDs shorter than 12-month term
- Does not offer interest rate guarantees
- Early withdrawal fees are high
- Jumbo CD rates similar to regular rates
What You Need to Know
The set amount required to open State Farm Bank CDs is low. Each regular CD term only requires $500 to open. You must keep $500 in the CD to earn interest. State Farm Bank offers personal deposit CDs and business CDs. The required amount is the same for business and personal CDs. To open a jumbo CD requires $100,000 to open.
State Farm Bank offers a good variety of CD terms. They offer CDs specific to personal deposit and business CDs. There are six different CD term lengths for personal deposits as well as business CDs. The terms range from 12-months to 60-months. State Farm Bank also offer jumbo CDs in the same terms as regular CDs.
The interest rates for State Farm Bank CDs are competitive. They are competitive with other online CDs. All the CD terms offer rates competitive with other online CDs of the same term length. The rates of State Farm Bank CDs are much higher than typical bank interest rates. You must keep $500 in the regular CDs and $100,000 in the jumbo CDs to earn interest.
State Farm Bank CDs can be opened online. You can fund your account by linking an external account to your State Farm CDs. Once you are approved for an account, your account is completely online. You can view everything for your State Farm accounts online or on their mobile app.
State Farm Bank does not offer CD terms shorter than 12-months. They do not offer a three, six, or nine-month CD terms. The shortest terms available is the 12-month term. This term is available as a personal deposit CD as well as a business CD term.
State Farm Bank does not offer an interest rate guarantee. If you open a CD with State Farm and the interest rates increase soon after, your rate does not increase. The interest rate on the day you open your CD is the rate you receive for the entire CD term.
All State Farm Bank CDs have a fee if you withdraw money before the CD reaches maturity. The penalty for early withdrawals is high. If you withdraw money from a CD term between 12 and 23 months, the fee is 180 days of interest. For terms from 24 to 47 months, the fee is 365 days of interest. The fee is 545 days of interest if you withdraw money early from CD terms for longer than 48 months. There is also a minimum withdrawal penalty of $25 if your fee does not total more than that.
State Farm Bank offers jumbo CDs. To open a jumbo CD requires an opening balance of $100,000. The interest rates for the jumbo CDs are the same as the regular CD rates. These CDs do not offer interest rates any higher than the other CD rates. Jumbo CDs are available in personal deposit accounts and business accounts.
Cool Things
Finances Learning Center
The State Farm website offers a learning center. Here you can see how to fill out a check, building credit, or how to teach children and teens about money. You can learn how to save for college or prepare financially for a baby. You can get tips about managing energy or saving money. Learn how to prepare or recover from natural disasters. This website also offers financial calculators. Easily visualize debt consolidation or saving with a budget through these calculators.
History
State Farm first started in 1922. George Jacob Mecherle was a retired farmer and insurance agent. He wanted to start a company that was fair and would treat the customer well. It was first started as an auto insurance company.
State Farm provides more car and home insurance than any other U.S. insurance company. They have over 65,000 employees and offer more than 100 different products. Some of those products are bank accounts, including CDs.
Today State Farm Bank has over $16 billion in assets. They are the 101st largest bank in the United States based on assets. State Farm has over 83 million insurance policies and bank accounts.
Awards and Recognition
- Top 100 Most Military Friendly Employer in 2019
- Most Admired Company by FORTUNE
Giving Back
In 1963 the State Farm Companies Foundation started. This is a foundation that supports scholarships, offers grants, and supports volunteering. They offer over 100 scholarships ranging from $2,500 to $8,000 each year. State Farm Companies Foundation matches contributions made to qualifying charities. They donate $500 for each employee or retired employee who volunteers 40 hours a year.
State Farm encourages everyone to serve in their neighborhoods. Their website, Neighborhood of Good, offers a variety of ways you can serve right in your own area. Forty causes received grants from Neighborhood of Good in 2017. One of those causes was The Backpack Project. They won a $25,000 grant to help fill backpacks for the homeless.
Frequently Asked Questions
Yes. State Farm Bank is FDIC insured. The FDIC is an agency of the United States government that protects funds deposited in banks, up to $250,000 per customer, per bank. The money deposited in FDIC insured banks means money is backed by the full faith and credit of the United States government.
They offer five regular term CDs and one special term 30-month CD. The business CDs offer the same terms as personal deposit CDs. They also offer jumbo CDs for personal deposit and business CDs.
Each State Farm Bank CD requires $500 to open. That required opening amount is the same for personal CDs and business CDs. Jumbo CDs require $100,000 to open.
Fund your State Farm Bank CD by mailing in a check or through an electronic transfer. To make an electronic transfer, you must link an external account to your CD.
Access your money through electronic transfers. Make transfers by linking an external account to your State Farm Bank CDs. You can also link another State Farm Bank account to your State Farm CDs.
No. You can open a CD without opening any other State Farm Bank accounts.
Yes. The interest rates for each State Farm CD is competitive with other online accounts. Their rates are much higher than typical bank rates.
Yes. You can have the interest added to the CD amount. Or, you can have the interest paid to you in the form of a check or deposited into another State Farm Bank account.
For CDs from 12 to 23 months, the fee is 180 days of interest. The fee for terms from 24 to 47 months is 365 days of interest. The fee for terms 48 months or longer is 545 days of interest.
To make changes to your CD during the grace period, contact customer service.
Contact State Farm Banks customer service.
The grace period is ten days. That starts immediately after your CD reaches maturity.
Yes. The rates are guaranteed for the life of the CD term.
Yes. State Farm Bank offers a mobile app. You can view account balances with the mobile app.
The interest rates for State Farm Bank CDs are competitive. The opening required amount is low. They offer a good variety of CDs but do not offer any terms shorter than 12-months.
They offer security safeguards that comply with federal laws and state laws. State Farm monitors its computer networks. They also test the strength of their security measures.
The shortest term available with State Farm Bank is the 12-month term. This term is available as a personal deposit account, business CD, or a jumbo CD.
The longest term available is the 60-month CD. This CD is available as a personal deposit CD, a business CD, or a jumbo CD.
Yes. They offer personal deposit accounts. Those include checking, money market, and savings account. They offer a health savings account, CDs, loans, and credit cards.
State Farm Bank offers specific business CDs. Those CD terms range from 12-months to 60-month terms.
By phone, email, mail, or by contacting your local agent. Customers can contact customer service through secure chat or secure online messages. You can follow State Farm Bank on Facebook, Twitter, LinkedIn, YouTube, and Flickr.
Bank Contact Information
State Farm BankPO Box 2316
Bloomington, IL 61702-2316
877-734-2265
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