State Farm Bank is a mid-sized bank that was organized as a separate entity from the insurance giant’s main business. While many consumers equate State Farm with insurance and investment products, it’s banking component offers a range of personal products worth considering.
State Farm Bank’s depository banking products consist of savings, checking, money market, Certificate of Deposit (CD), and IRA accounts. Its checking account options are simple and include a free account with no monthly fee avoidance requirements, and an interest bearing account that requires direct deposit in order to avoid a monthly fee. The bank’s savings account offers an interest bearing way for consumers to save and comes with a small ATM fee monthly rebate. Money market accounts provide varying rates of interest depending on the level of account balance threshold met. Certificates of Deposit (CD) are also available in term lengths ranging from 3 to 60 months and IRAs in term lengths from 12 to 60 months. The bank operates wholly through the online channel, thus making customer service an important aspect to consider before opening an account. State Farm Bank’s website publishes real customer reviews that help consumers get a more realistic feel for the product offerings. The bank is partnered with a number of ATM networks, including NYCE, PLUS, PULSE, and STAR, making it easy for customers to access funds and perform banking tasks.
State Farm Bank online banking is an important aspect of the bank’s business because it does not operate any physical branches. DepositAccounts provides customer reviews on experiences with the online banking system. The web-based platform allows customers to deposit funds remotely, pay bills, transfer funds, and manage credit card accounts with the bank. A mobile banking app also makes these account management tasks easy and convenient to perform on the run. Consumers can also sign up for retirement accounts and monitor fund growth via the online banking system.
State Farm Bank was established as an aspect of State Farm’s expansion into financial services in 1999. It is an institution organized as an entity distinct from the major State Farm insurance brand. The bank is headquartered in Bloomington, Illinois and serves its customers through its online channels.
I am a current customer with a State Farm Bank Checking account.
I've had numerous accounts with multiple institutions. I've never seen a more poorly managed and stunningly inconsistent financial institution. I continue to receive conflicting information based on what part of the Bank I'm in contact with depending on the issue. For example, one part says the bank can't do this or that while other staff at the bank say my account is fine and they absolutely support this or that. I've actually got a form on my desk from one part of the bank requiring my signature while another part of the bank says I don't need to sign it and that everything is fine with my account.
The nail in the coffin for State Farm Bank is the fact that they don't support Mint.com or Quicken. Yep, it's 2012 and State Farm Bank does not allow you to download transactions into Mint.com nor do they allow you to download transactions into Quicken (Express Web Connect or Direct Connect). What's amusing is that over the four weeks it took me to confirm this with State Farm Bank, their online support staff would say that it does, then they would get their terms wrong (not knowing the difference between "Direct Connect" and "Express Web Connect"), and then say that they don’t support Mint.com or Quicken at all.
Their telephone support agents are polite and cheerful. However, they can only do so much. The bank's back-office staff are poorly trained, uninformed, and (based on their very poorly written communication) stupid.
I can summarize State Farm Bank up in one word: incompetent.
I can not, and do not, recommend State Farm Bank for anyone. Look elsewhere for your banking needs. The benefits of ATM access are not worth the hassle and stunning incompetence that is State Farm Bank.
State Farm has a very good bill pay/transfer between accounts system compared with the clunker I use at my credit union. They also refund your ATM card usage at the end of every month, which I find invaluable for travelling. And if you desperately need to give a physical check to someone you can go to most State Farm agents. Real people answer the phone and I've been helped in minutes with a problem.
I've had an Ally bank account, and I think they have slightly better rates and a similar deal with the ATM card. I think its irritating how you have to sign up for this through an agent, but it only takes 5 minutes and its about as timeconsuming as when I signed up for a Chase or Ally bank account online.
I started online banking with B of A in the 90's and was very pleased with the many advantages online banking offered. The cobo of brick and motor branches and ATM's everywhere made them hard to beat. I was very happy and reluctant to even consider any other bank even with my State Farm Agent's encouragement to check out SFB. However the day he said that I could use any ATM with any bank, etc. and SFB would return the charges to me, I took the time to check out SFB. I started with a Visa card to see how the internals of the Internet transactions were handled. I had big doulbs that this up start bank (1999) could really compete with my cutting edge, and mega size bank.
To my surprise and delight SFB surpassed all my expectations. The first thing I noticed was they provided just the right amount of security on my SFB Visa card and lower interests rate than B of A or other cards. Security is a big issue for me, I want it but not at the expense of needlessly shutting my card down or phone calls with every potential security breach. I was amazed with their spot on security detection.
Not only did they offer all the benefits of B of A but offered big advantages. The biggest advantage was being able to use any ATM, anywhere and pay no charges.SFB paid much higher interest rates on all my checking and savings accounts. The only draw back to this bank is if you or your business deals in cash. You will need to look around to find an ATM that will accept a cash deposit for your cash deposit needs. It's not a problem for my needs. If you can't find a local ATM that will accept cash deposits for SFB, you may want to maintain an account with the likes of B of A to handle your cash deposit needs.
One last thing, the service is great day or night, you get to talk to a real person quickly, that you can understand, and not have to wade through deep accents.
I really enjoyed working with this bank. State Farm was one of the fist banks that let you deposit checks from your phone (rather than having to go in store). They have good security and I have had no problems with any weird fees. My experience has been fairly straight forward. Their app (State Farm Pocket Agent app for iPhone) also is nicely designed and fully functional. The app pretty much serves all the features that you would need for your banking to be smooth and reliable. State Farm also has technical assistance twenty four hours a day. That's incredibly convenient. Most other technical supports are either closed after a certain hour and you have to wait till the next day to call. Although I do not bank with them anymore, due to my family banking with another provider, I still can say good things about State Farm.
The Texas Ratio is an indicator of how much capital a bank has available compared to the total value of loans considered at risk. As of June 30, 2014 State Farm Bank had $142.09 million in non-current loans and owned real-estate with $1.99 billion in equity and loan loss allowances on hand to cover it. This gives State Farm Bank a Texas Ratio of 7.15% which is excellent. Any bank with a Texas Ratio near or greater than 100% is considered at risk.
The Texas Ratio for State Farm Bank decreased slightly from 10.04% as of June 30, 2013 to 7.15% as of June 30, 2014, resulting in a positive change of 28.82%.This indicates that the balance sheet and financial strength for State Farm Bank has improved slightly in recent periods.
In the past year, State Farm Bank has increased its total deposits by $799.11 million, resulting in 8.24% growth for the year. A strong track record of growth is an indicator of consumer confidence and the bank's ability to strengthen its balance sheet. The growth State Farm Bank has shown is excellent.
Both FDIC and NCUA consider capitalization levels of banks and credit unions to be of high importance. Higher capitalization allows for a greater buffer when cover loans that may fail in the future. State Farm Bank has $17.43 billion in assets with $1.99 billion in equity, resulting in a capitalization level of 11.41%, which is excellent.
|FDIC Certificate #||34617|
|Assets and Liabilities|
|Equity Capital||$1.75 billion|
|Loan Loss Allowance||$240.80 million|
|Unbacked Noncurrent Loans||$137.01 million|
|Real Estate Owned||$5.08 million|
|Historic Data - June 2013|
|Equity Capital||$1.68 billion|
|Loan Loss Allowance||$250.70 million|
|Unbacked Noncurrent Loans||$137.01 million|
|Real Estate Owned||$22.16 million|
|Profit Margin - Quarterly|
|Return on Assets||0.37%|
|Return on Equity||3.54%|
|Interest Income||$314.79 million|
Always verify rates and promotions with the bank or credit union. We are not State Farm Bank, we are a rate comparison website and can not provide official rates or promotions.
|0.40%||$10k||-||Health Savings Account|
|0.90%||$100k||-||IRA Money Market|
|0.90%||$100k||-||Roth IRA Money Market|
|2.15%||-||-||60 Month CD|
|1.75%||-||-||48 Month CD|
|1.45%||-||-||36 Month CD|
|0.60%||$100k||-||24 Month CD|
|0.20%||$100k||-||12 Month CD|
|0.10%||-||-||6 Month CD|
|0.05%||-||-||3 Month CD|
|2.15%||-||-||60 Month IRA|
|2.15%||-||-||60 Month CESA|
|1.75%||-||-||48 Month IRA|
|1.75%||-||-||48 Month CESA|
|1.45%||-||-||36 Month IRA|
|1.45%||-||-||36 Month CESA|
|0.60%||$100k||-||24 Month IRA|
|0.60%||$100k||-||24 Month CESA|
|0.20%||$100k||-||12 Month IRA|
|0.20%||$100k||-||12 Month CESA|
State Farm Bank is an Internet only bank and does not have branch locations. Its headquarters is located at One State Farm Plaza E-6 - Bloomington, IL 61710