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Special 15-Month CD Rate at State Farm Bank

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State Farm Bank

Every so often State Farm Bank comes out with a competitive CD rate. This week the bank increased the rate of its 15-month CD special to a competitive level. The 15-month CD and IRA CD now have a 1.01% APY. Minimum deposit is $500. This rate is listed in the bank’s rates page as of 7/5/2013. Note, you may have to enter your zip code to view the rates. This special CD rate appears available for all zip codes.

I have more details about the CD features in my previous State Farm Bank CD review. The CD can be opened online, by phone or at a participating State Farm agent.

If you don’t like internet banks, State Farm Bank has the advantage of having a connection with State Farm insurance agents who can help you open an account. However, it’s important to understand those insurance agent offices are not bank branches. My dad learned this when he wanted to close his State Farm Bank CD. State Farm Bank was the only online bank that my dad ever opened an account at. He opened a special CD at the bank several years ago. The reason he felt comfortable with State Farm Bank was that he was able to open the account at his State Farm insurance agent’s office. He never used online banking. The internet bank only became an issue when he wanted to close the CD at maturity. Since the agent’s office isn’t a branch, he couldn’t receive a check from the office. I think he had to call the bank and request that he wanted to close the CD and receive the funds. The bank then mailed the check. That was the last time he opened a CD at State Farm Bank.

State Farm Bank used to offer competitive rates on its interest checking account, but its rate is now only 0.25% for balances of at least $2,500 as of 7/5/2013.

The bank has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas ratio of 10% (above average) based on March 2013 data. Please refer to our financial overview of State Farm Bank for more details. The bank has been a FDIC member since 1999 (FDIC Certificate # 34617).

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To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.


  Tags: State Farm Bank, CD rates

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Comments
4 comments.
Comment #1 by Anonymous posted on
Anonymous
I have had a large money market account with State Farm Bank for many years.  Recently, I called to wire some money out of my account, and was met with a barage of security questions to access my account.  I failed to answer all of the twelve or so questions they asked me, including the month and year I opened my account many years ago, the exact amount of the original mortgage amount of my house that I bought 15 years ago (they had two answers that differed from each other by less than

$2,000) and the subdivision of a rental property I briefly owned in another state some 6 years ago!  When I failed the test, they immediately locked down my account because they thought I was a scammer trying to access my own account.  I was calling from my home phone, but they said they didn't have caller ID so they couldn't confirm my location, and they told me it wouldn't matter anyway, since I failed the test.  A demand to talk to a supervisor was met with an indifferent response by someone who said the questions were designed by an outside security expert firm and the supervisor thought the questions were quite reasonable.  Keep in mind, State Farm has long had different security measures in place, including voice ID, and they gave no notice to me of the new procedure, nor did I have any input into what the questions and answers would be.  I had to drive to a State Farm office and prove who I was with photo ID to get access to my money.  The real estate transaction I planned to settle using these funds did not settle on time because of State Farm.  The State Farm agent told me he himself failed the test on his own account, and he thought the situation was ridiculous.  I closed my $350,000 account and will never do business with State Farm again.  If you do business with them, be prepared for the same kind of treatment when you try to access your money.

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Comment #2 by Anonymous posted on
Anonymous
And like a bad neighbor, State Farm is NOT there.

1
Comment #3 by Anonymous posted on
Anonymous
I would never put that much money in an account.  I would have spread out so tje finds would be FDIC insured.

1
Comment #4 by Anonymous posted on
Anonymous
I too think the questions are ridiculous. I don't know what kind of car I have or what year it is. Ask me the names of my grandkids. I can still remember that!!

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Comment #5 by Anonymous posted on
Anonymous
You don't know what kind of car you drive????

1