For the past six years, Farmers State Bank (FSB) has consistently offered competitive CD Specials. FSB currently has two CD Specials: 17-month with a great 2.02% APY) and 10-month earning a mediocre 1.67% APY. (FYI – DA compares 10-month CD APYs to APYs for 1-year CDs, hence my use of “mediocre.”)
As stated in Truth-in-Savings document, the Early Withdrawal Penalty reads as follows:
Your account will mature in 17 months. If you withdraw any of the principal before the maturity date, we may impose a penalty of 12 months interest penalty on the amount withdrawn.
Funding a CD Special can be done by ACH, wire, check, or through an internal transfer.
There is a 10-grace period before the CD Special will automatically renew. When a CD Special is opened, you must opt for either automatic renewal or non-renewal. If you chose not to renew, the maturing “funds will be placed into a non-interest bearing account.”
Headquartered in Waterloo, Iowa, Farmers State Bank’s market area has expanded since my last blog post in 2020. While FSB has a brick-and-mortar presence in only seven Iowa counties, all residents of Iowa who are 18 years or older and have a valid Social Security number are now eligible to open a FSB account through an online application.
Opening a CD Special can be done online or at any of eight Iowa branches located in Cedar Falls, Dunkerton, Gilbertville, Jesup, Waterloo (2), Waverly, and West Des Moines.
Farmers State Bank has an overall health rating of "A" at DepositAccounts.com, with a Texas Ratio of 2.58% (excellent), based on March 31, 2022 data. In the past year, Farmers State Bank has increased its total deposits by $28.85 million, an above average annual growth rate of 2.87%. Please refer to our financial overview of Farmers State Bank (FDIC Certificate #12855) for more details.
Farmers State Bank has been locally owned and operated with since 1879. It was originally organized as Farmers Bank of Jesup (a private bank) and in 1882 re-organized under a National Charter. The name was changed in 1903 to "Farmers State Bank, Jesup, Iowa," operating as a corporation under State of Iowa law with $25k in capital. Farmers State Bank has grown to become the 19th largest bank in Iowa, with assets in excess of $1.4 billion and more than 80,000 customer accounts.
How the 17-Month CD Special Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the market area and have minimum deposit requirements of $10k or less, no bank or credit union has a higher rate than currently offered on the Farmers State Bank 17-month CD Special. The following table compares the 17-month CD Special to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
The above information and rates are accurate as of 5/31/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.