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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