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.
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.
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.