Dedicated to Deposits: Deals, Data, and Discussion

2.77% 21-Month CD at State Farm Bank - Nationally Available

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State Farm Bank
State Farm Bank is offering a special 2.77% APY 21-month certificate of deposit. The minimum required deposit is $500. The rate is listed at State Farm Bank's rate table as of 3/11/09.

State Farm Bank's CD Page has the details and the link to the Truth in Savings Disclosure. According to the disclosure, the early withdrawal penalty is 180 days of interest on the principal withdrawn.

State Farm Bank also has a competitive rate on its Interest Checking Account. As of 3/11/09, the rate is 1.55% APY on balances of at least $2,500 (0% for smaller balances). Minimum opening deposit is $100, and there's a $10 monthly fee for average daily balances under $500. This checking account may not seem too competitive, but it's not bad if you compare it to 1% at Charles Schwab or 0.50% at ING Direct.

You can apply online, but a printer is required, as you will be required to print, sign and mail the application to State Farm 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.

State Farm Bank has some decent ratings for safety and soundness: 3.5 stars (good) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 9/30/08 financial data. State Farm Bank has been FDIC insured since 1999 (FDIC Certificate # 34617).

Other Top Certificate of Deposit Rates

The best bank deal for terms around two years continues to be at GMAC Bank with a 3.00% APY 24-month CD (see review). One of the top two-year CD deals for credit unions continues to be at Alliant Credit Union which is offering a 3.30% APY for terms of 24 to 35 months with a minimum deposit of $25K (see review). Refer to my weekly rate summary for other deals. Please note that some rates have already dropped since my Saturday update.

  Tags: State Farm Bank, CD rates, checking account

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Comments
2 Comments.
Comment #1 by Anonymous posted on
Anonymous
Based anecdotally on what I've seen on other blogs, watch out for a unusually high number of "hard credit pulls" when opening many State Farm accounts, if that kind of thing bothers you.

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Comment #2 by ctgottapee (anonymous) posted on
ctgottapee
also, SF web site is pretty poor comparitively, think PentagonFCU; so it can get frustrating if your going to do a lot of banking like with a checking account. the site is a lot of outside vendor products mashed together, and it goes down a lot or gets slow, and is generally offline after midnight. ACH online was not possible.

the bank is geared more for the smaller scale, put your money all in one place type of person; the more savy customers like BankDeals readers will find it 'old fashioned'.

phone customer service is about as friendly as you can get, but that doesn't mean the best. nobody in india answering their phones. 24 hour service doesn't mean 24 hours; in the wee hours you just get somebody who tells you to call back later - i'm guessing their internal systems are down.

they were one of the first to offer atm rebates and still do on many accounts with few or no restrictions.

using an agent to do banking is almost laughable as most don't want to bother with it or have a clue, they don't make money. so if you need a branch like feeling with knowledgable bank people, and services, this is a no go.

their rates were not competitive until recently, so this may be temporary cash crunch promotions. they also tend to be slow to adapt to trends in the marketplace, like don't expect to see reward checking for another 5 years.

many of their products are outsorced or resold like credit cards and mortgages, although they have been bringing some products back in house.

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