5.75% 24-Month CD at State Farm Bank
Aug 4, 2006 - 8:46 AM by Ken Tumin
State Farm Bank is offering a 5.75% APY (5.59% interest rate) 24-month certificate of deposit. The minimum required deposit is $500. State Farm Bank is FDIC insured.
In June, the 2-year CD at State Farm Bank was 5.50%. With this latest rate bump, this 2-year CD is one of the best rates available nationwide. Two years is a little long, but continued rate hikes are no longer a certainty. Long term CD rates are dropping at many banks. So it may be wise to start thinking about some long-term CDs.
You can apply online, but a printer is required, as you will be required to print, sign and mail the application to us, along with your initial deposit. You may also apply for an account by contacting State Farm Bank toll-free at 1-877-SF4-BANK (1-877-734-2265) or by contacting a participating State Farm agent.
In June, the 2-year CD at State Farm Bank was 5.50%. With this latest rate bump, this 2-year CD is one of the best rates available nationwide. Two years is a little long, but continued rate hikes are no longer a certainty. Long term CD rates are dropping at many banks. So it may be wise to start thinking about some long-term CDs.
You can apply online, but a printer is required, as you will be required to print, sign and mail the application to us, along with your initial deposit. You may also apply for an account by contacting State Farm Bank toll-free at 1-877-SF4-BANK (1-877-734-2265) or by contacting a participating State Farm agent.
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Anonymous - #1, Friday, August 4, 2006 - 5:08 PM
I wanted to note that following the 'weak' 113k job report the fed funds futures are now pricing in a 20 percent probability of a rise compared to the 40 percent probability yesterday.
Interesting and perhaps of some worth for those wishing to lock in rates.
James (anonymous) - #2, Friday, August 4, 2006 - 5:12 PM
after posting the above comment I wanted to followup on a higher apy fdic CD. Assurance Partners Bank is offering a 1 year 5.8% APY (from bankrate.com new as of today).
Anonymous - #3, Friday, August 4, 2006 - 8:41 PM
If you want to hedge your bets, you could get one of those IndyMac - 1 yr. bump-up CDs at 5.70% APY. Not bad at all.
If the Fed wants to make fools of the market and raises the Fed Funds rate to 5.50%, you won't feel too bad with the bump-up.
And, once you complete the on-line application (they do a credit check)you have 10 days (no-obligation of course) to fund the CD with a regular check giving you even more timing flexibility.
Banking Guy (anonymous) - #4, Saturday, August 5, 2006 - 5:37 PM
Thanks for the CD info on Assurance Partners Bank and IndyMac. I've posted on both
Anonymous - #5, Sunday, August 6, 2006 - 10:03 AM
you can pretty much lock in the 5.75 % for a couple weeks while deciding . I called the number at thier website for account opening . They will lock in the current rate while they send forms to fill out and then u have 10 day to get them turned in .
Anonymous - #6, Monday, August 7, 2006 - 9:53 AM
I called State Farm this morning. Local csr said rate was good till end of business day, 08/08. Gives you a chance to see what Fed does tomorrow.
Banking Guy (anonymous) - #7, Monday, August 7, 2006 - 6:52 PM
Thanks for checking on this. These special CDs never seem to last too long at State Farm.
Banking Guy (anonymous) - #8, Thursday, August 31, 2006 - 9:23 AM
Some useful comments from readers regarding opening State Farm CDs:
StateFarm Bank claims that
"Electronic funds (ACH) transfer available to fund a CD"
However, on the online application form, applicants are asked whether they have a printer, and if they answer yes, the response is
"Great! If applying for a deposit product, you will be required to print, sign and mail the application to us along with your initial deposit."
So, is ACH transfer still available as a means of funding? Mailing in the deposit can cause delays and rates can change.
It's also stated that there's a
"/blog/20-day grace period from the maturity date to change the investment terms or withdraw your funds without being charged a penalty".
Check out the details here.
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In partial response to the query regarding State Farm, I opened a two-year 5.75% APY IRA CD with State Farm last week (a custodian-to-custodian transfer), at the office of a local State Farm agent. The rate was locked at the time of application by the home office, and all forms were submitted for me electronically by the agent. Check the State Farm Bank website to find the local agent closest to you authorized to open accounts for the Bank. You should specifically ask them to lock the rate, and it will then be clearly indicated on the paperwork ("Certificate of Time Deposit Application") along with your new account number. You can expedite funding by using wire transfer.
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State Farm Bank doesn't have online ACH funding like you would expect. In order to fund a CD by ACH, you need to get a paper ACH authorization form (from the bank or an agent), get it filled out, and mail it to the bank. For all the trouble, you might as well just mail them a check.
Most State Farm agents can give you a prepaid Fedex overnight envelope for State Farm Bank. Just put your deposit in there and drop it off at any Fedex pickup (Kinkos, a Fedex Service Center, drop boxes in business areas, Fedex Express drivers). There are Fedex drop boxes in front of most Post Offices. Your deposit will get there sooner and you can track its progress online if you remember to write down the tracking number.
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