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State Farm Bank Raises Rates on Three Long Term CDs


State Farm Bank continues to raise interest rates on its long-term CDs to very competitive levels: 36-month (1.45% APY), 48-month (1.75% APY), and 60-month (2.15% APY). These CDs can be opened with a $500 deposit and are also available as IRAs (Traditional and CESA). More detail on these CDs can be viewed on the bank's rate page (rates as of 8/7/2014). Entering your zip code is required to view the rates, but the previously mentioned rates apply to all zip codes.

As always, DepositAccounts.com is very appreciative of PearlBrown's Forum posting on these State Farm Bank CDs.

1.70*%--State Farm Bank60 Month CD
1.70*%--State Farm Bank60 Month IRA (Traditional, Roth, CESA)
1.60*%--State Farm Bank48 Month CD
1.60*%--State Farm Bank48 Month IRA (Traditional, Roth, CESA)
1.50*%--State Farm Bank36 Month CD
1.50*%--State Farm Bank36 Month IRA (Traditional, Roth, CESA)
Accounts mentioned in this post. Rates as of May 24, 2016.


State Farm Bank's CDs are available nation-wide and can be opened either online, by phone, or by visiting a State Farm agent. If you chose to open the CD through a State Farm agent, please note that beyond opening the CD, the individual agent has no fiduciary responsibility and you must manage your account online or by phone. Individuals (including minors) listed on an account must have a valid Social Security Number (SSN), Tax Identification Number (TIN) or Individual Taxpayer Number (ITN).

Several months ago, I wrote in greater detail about State Farm Bank's CDs/IRAs, but one feature bears repeating:

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

This is significant, since many banks do not waive early withdrawal penalties for this type of distribution.

Bank Overview

State Farm Bank has an overall health rating of A+ at DepositAccounts.com, with a Texas Ratio of 7.87% (excellent) as of March 31, 2014. In the past year, State Farm Bank's total deposits have grown by an impressive $895.19 Million, an increase of 21.39%. Please refer to our financial overview of State Farm Bank for more details.

Headquartered in Bloomington, IL, State Farm Bank (FDIC Certificate #34617) was established in 1999 as a separate entity, distinct from the ubiquitous State Farm insurance brand. With total assets of over $16 Billion, State Farm Bank operates nation-wide solely online.

How the Rate Compares

Very few banks are currently offering higher rates than State Farm Bank on nationally available CDs of similar length, with a $500 or less minimum deposit. They are:

  • 60-month CD Barclays & GE Capital Bank (2.25% APY)
  • 48-month CD Nationwide (1.79% APY)
  • 36-month CD None

The above rates are accurate as of 8/7/2014.

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

Related Pages: State Farm Bank, Peoria, IRA rates

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hoho (anonymous)   |     |   Comment #1
If You withdraw any principal before the maturity date, the following penalties may be imposed:a penalty of seven (7) days' interest on the principal withdrawn when the withdrawal is made within six (6) days of the initial deposit;a penalty of seven (7) days' interest on the principal withdrawn when the withdrawal is made within six (6) days of a previous withdrawal;a penalty equal to 90 days' interest (earned or not) on the principal withdrawn for certificates with terms of 12 months or less; anda penalty equal to 180 days' interest (earned or not) on the principal withdrawn for certificates with terms longer than 12 months.
Anonymous   |     |   Comment #2
If you are a State Farm insurance customer:

Be aware your State Farm agent, and all personnel working in that agent's office, will have access to your detailed State Farm Bank data.  This might, for some individuals, represent an unwanted privacy intrusion.

Is this an issue or concern for persons who do not insure with State Farm?  I dunno for certain, but I doubt it.   
Anonymous   |     |   Comment #5
I insure with State Farm, both for auto and home.  I can confirm what you wrote because I once asked that very question of State Farm Bank.

It never made sense to me that my banking business, all my account balances, and so forth, would become known to everyone in my State Farm Insurance office.  Because I was not comfortable with that, and because I wanted to keep my State Farm insurance, I never invested at State Farm Bank.
paoli2   |     |   Comment #6
I hate this new "relationship" way of having to do business with banks and insurers.  Why can't we just pay our premiums and be left alone unless we need their services.  Our State Farm agent always wants to "get together" just to talk over our business and see what else he can do for us.  It gets to the point one has to be rude and just tell them to buzz off!  I once asked them what their CD rates were out of curiosity and it set up a tirade of calls and letters wanting to "meet with us".  Sooo I made darn sure I don't mix my finances with my insurance needs.
Bozo   |     |   Comment #3
Oh, well, had hoped to keep this a secret until my IRA CD matured. In late August. Guess tons of money will flow in, and the rate will go down. Whatever.
Anonymous   |     |   Comment #4
Recollecting the PenFed 3% frenzy, I guess we can say that 2% is the new kid on the block. I know folks that will be apoplectic when local 1-yr. rates hit a full percentage point! How times have changed.