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State Farm Bank

Higher CD Rates and IRA Rates at State Farm Bank


State Farm Bank increased its 5-year CD and IRA CD rates. The 5-year CD rate increased from 1.90% to 2.05% APY. The 5-year IRA CD had an even larger rate increase. That when up from 1.90% to 2.10% APY. In addition to the 5-year CD, State Farm Bank increased the rate of its IRA money market savings account. It now has a 1.00% APY for balances of at least $25,000. That rate used to be 0.75%. Minimum deposit for the CDs is $500, and the minimum initial deposit for the IRA money market savings is $1,000. These rates are listed in the bank’s rates page as of 1/16/2014. Note, you may have to enter your zip code to view the rates. These CD rates appear available for all zip codes.

1.75*%--State Farm Bank60 Month CD
1.75*%--State Farm Bank60 Month IRA (Traditional, Roth, CESA)
0.45*%$10k-State Farm BankIRA Money Market (Traditional, Roth)
Accounts mentioned in this post. Rates as of May 4, 2016.

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for the fixed-rate CDs, the early withdrawal penalty is equal to 180 days’ interest (earned or not) on the principal withdrawn for certificates with terms longer than 12 months.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.

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 1/16/2014.

TurboTax Offer

I just noticed at this State Farm page, that their TurboTax offer is coming on January 19, 2014. It appears that it’ll be the same as previous years. State Farm Bank and State Farm Mutual Funds customers should get free access to TurboTax. I’ll have more on this next week.

Bank Overview

The bank has an overall health grade at DepositAccounts.com of an A with a Texas ratio of 9.26% (excellent) based on September 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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Shorebreak   |     |   Comment #1
It's interesting to note the difference in prices for the non-free editions of TurboTax offered through the State Farm Bank web site and the Randolph-Brooks Federal Credit Union web site.

Here is the State Farm Bank offer:

Here is the RBFCU offer:

As much as $20.00 more at RBCFU for the identical TurboTax product. Not any discount from the prices quoted at the TurboTax web site.
Anonymous   |     |   Comment #2
I guess the credit unions need to get their share.  And who said CUs were so great?
Anonymous   |     |   Comment #3
I did.  My credit union is GREAT!
Anonymous   |     |   Comment #5
I just checked my credit card and I wish I could remember which credit union I used but I paid $21.19 for both federal and state and used the Deluxe. It might have been Inova Credit Union or Bank First.  
This year I will have to use the Premier.
I have an Apple and I think I could not download it this year and use a basis for converting, but was told I would be able to download it with these features next year. I found the online tax lawyers very helpful and they actually used the IRS to confirm a question I had, and helped with the special circumstances on getting the form that was not available as yet in the deluxe download.
iconoclast55 (anonymous)   |     |   Comment #4
Beware of doing business with State Farm Bank.  I had a money market account with them for many years.  One day about a year or so ago, I went online to check my account.  They asked me a long series of ridiculous security questions--at least 10, and maybe closer to 15--like:  was the value of the mortgage on the rental property you bought 13 years ago $141,335 or $143,704?  Apparently, I got at least one of the questions wrong.  They immediately locked up my account and would not unlock it until I personally went to a State Farm agent and showed him my photo ID.  No amount of talking with them from my home phone of record--they claimed they didn't have caller ID and could not verify my phone number--would persuade them I was the owner of my account.  I even complained to a manager and he said their outside security consultant designed the procedure and he thought it was entirely reasonable.  I went to a State Farm agent who apologized for his company.  He told me he, too, thought it was absurd, and that he didn't know if he could answer the questions they asked him, either.  I had enough and immediately took my $400,000 away from State Farm and closed my account, never to do business with these clowns again.  If you open an account, be prepared to be inconvenienced when they lock it down on you!
Anonymous   |     |   Comment #6
Thank you, iconoclast55, for a truly interesting and valuable post.  I have shared your experience with State Farm Bank, though not as to the specifics.  But I have found State Farm Bank intransigence and arrogance off the charts.  And I, too, stopped doing business with them.

Ken blogs about literally hundreds of banks and credit unions.  Most are fine, customer-friendly institutions, at least in my experience.  The only other bank that ever came close to State Farm's level of detestability, for me, was FNBO.

With so many excellent, customer-oriented, banking institutions available, life is simply too short to fool around with the likes of State Farm Bank and their insanity.  And you never know when or where their dementia will assert itself, as happened to you.  It can come out of nowhere.  Dealing with them is just not worth the high potential for hassle.
Anonymous   |     |   Comment #9
I thought I'd tag the following to this blog...From...and other states impacted?


"Minnesota residents who had hoped to file their 2014 tax returns from the comfort of their home offices using TurboTax will need to find another alternative. The state's Department of Revenue announced in a conference call last night that it's no longer accepting returns filed using Intuit's online program after two taxpayers called Wednesday to complain they were alerted that returns had already been filed under their names when they logged in, CBS Minnesota reports. When the department pored over already-submitted returns that had come through TurboTax, officials found "potentially fraudulent activity," which led to the shutdown. Tax professionals will still be permitted to file returns using Intuit's professional-geared programs. "We do not take this step lightly," the department said in last night's call. ..."