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3.00% 28-Month CD and 1.55% Checking Account at State Farm Bank - Nationally Available


State Farm Bank
Update 8/03/09: State Farm Bank's CD specials have ended.

Update 7/24/09: The special 28-month CD rate has fallen to 2.59% APY.

State Farm Bank has a new competitive CD special. It's a 3.00% APY 28-month CD. Minimum deposit is $500. The rate is listed at State Farm Bank's CD rates page as of 6/18/09.

This 28-month CD is the only competitive CD that State Farm Bank is offering, and it's the only one at 3%. It's getting more difficult these days finding 3-percent-plus CDs for terms under 3 years.

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 According to the disclosure, the early withdrawal penalty is 180 days of interest on the principal withdrawn.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 continues to have a competitive rate on its Interest Checking Account. As of 6/18/09, the rate is 1.55% APY on balances of at least $2,500 (0% for smaller balances). This is the same that it was in March. 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 0.75% at Charles Schwab or 0.25% at ING Direct.

There's an online application for the regular CDs, but there's not an option for any special terms. So you'll have to apply by phone (1-877-734-2265) or at an office of a participating State Farm agent.

A reader commented in a previous State Farm post that there have been reports that State Farm Bank does a high number of hard credit inquiries when opening accounts. The hard credit inquiry can temporarily ding your credit score. If you've experienced this from State Farm Bank, please leave a comment.

State Farm Bank's ratings for safety and soundness continue to be a little weak: 3 stars (adequate) at BauerFinancial (based on 3/31/09 data) and 2 stars (below peer group) at (based on 12/31/08 data). State Farm Bank has been a FDIC member since 1999 (FDIC Certificate # 34617).

Other Top Checking Acccount and Certificate of Deposit Rates

Rate History:
07/24/09: 2.50% APY 28-month
07/01/09: 2.75% APY 28-month
06/18/09: 3.00% APY 28-month

  Tags: State Farm Bank, CD rates, checking account

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Comment #1 by Anonymous posted on
Down to 2.75% as of July 1st

Comment #2 by Anonymous posted on
SFB is no longer offering this CD term. Nothing has replaced it yet.

Comment #3 by Anonymous posted on
also note: The interest checking minimum average daily balance is $500 (as is the MMA).

However, these are waived if there is an external direct deposit coming into the accountly monthly.
~bank rep