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State Farm Bank
1.75*%--State Farm Bank60 Month CD
1.60*%--State Farm Bank48 Month CD
1.55*%--State Farm Bank36 Month CD
Accounts mentioned in this post. Rates as of April 30, 2016.

Big Increase on 5-Year CD Rate at State Farm Bank


Like several other internet banks, State Farm Bank has increased its long-term CD and IRA CD rates. Most noteworthy is its 5-year CD which now has a 2.00% APY. Other competitive rates include its 4-year CD with a 1.50% APY and its 3-year CD with a 1.15% APY. State Farm Bank had been offering a good deal on a 15-month CD, but that rate went down to 0.90%. Minimum deposit is $500. These rates are listed in the bank’s rates page as of 9/5/2013. Note, you may have to enter your zip code to view the rates. These CD rates appear available for all zip codes.

I have more details about the CD features in my previous State Farm Bank CD review. According to the Truth in Savings Disclosure for the fixed-rate CDs, the early withdrawal penalty is equal to 180 days’ interest (earned or not) on the principal withdrawn for certificates with terms longer than 12 months. The CD can be opened online, by phone or at a participating State Farm agent.

State Farm Bank’s IRA CDs have a nice feature for those who have reached age 59½. Here’s what is stated in the Truth in Savings Disclosure for IRAs:

Normal distributions will be allowed on IRAs without incurring an early withdrawal penalty for customers who have reached age 59½. Transfers or rollovers to another IRA are not considered normal distributions.

Many banks don’t waive early withdrawal penalties for this type of distributions.

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. Once your account is opened, you’ll need to manage your State Farm Bank accounts online or by phone. And State Farm Bank’s procedures can make account access problematic. DA readers have commented about being blocked from accessing their accounts due to difficult security questions. When they were unable to provide correct answers, they were required to visit a State Farm office with an ID to prove their identity.

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 9/5/2013.

The bank has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas ratio of 10.04% (above average) based on June 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).

Searching for Top CD Rates

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

Related Pages: State Farm Bank, Peoria, CD rates

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Anonymous   |     |   Comment #1
State Farm used to have free Turbo Tax also for bank customers. Not sure if they still do. I understand it was up through the Deluxe version. 
Mary Jo Riddle, Agent
Mary Jo Riddle, Agent (anonymous)   |     |   Comment #2
They still offered it through 2013. My children (young adults) have used it every year since it started. I would expect it would be still available in 2014 but you can check through StateFarm.com search. 
Anonymous   |     |   Comment #3
what is the 5  year cd rate at state farm