State Farm Bank Review 2020

Published January 2020 by Adrian D. Garcia

AT A GLANCE
3.8
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Bankrate Score

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24/7 Customer Service

ATM fee refunds

State Farm Bank offers a robust suite of deposit and lending products. The majority of direct customer interaction and product assistance is provided by State Farm agents. If you need access to a traditional bank branch or frequently have to deal with cash, you might want to look elsewhere.

  • MMAs
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    3.7
  • Savings
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    3.2
  • CDs
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    3.8
  • Checking
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    3.4
  • MORE HIGH-YIELD OPTIONS
    MORE HIGH-YIELD OPTIONS
    BMO Harris Bank

    Member FDIC

    MMA

    1.95 % APY

    $ 5,000

    Min. balance for APY

    CIT Bank

    Member FDIC

    Savings account

    1.80 % APY

    $ 100

    Min. balance for APY

    Barclays

    Member FDIC

    Savings account

    1.70 % APY

    $ 0

    Min. balance for APY

    Overall

    3.8

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    Bankrate Score

    State Farm Bank is the banking and lending arm of insurance provider State Farm. The financial institution offers a variety of deposit, loan and financial card accounts.

    What we like

    • Offers a full package of deposit and lending products.

    • Deposit product fees can be waived or are lower than competitor fees.

    • No charge to use ATMs, and surcharge refunds available to customers who meet certain criteria.

    What we don't

    • No brick-and-mortar locations.

    • Other banks pay higher yields.

    • Reviews of the bank's iOS app are mixed.

    Money market accounts

    3.7

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    OTHER MMA OFFERS YOU MAY LIKE
    BMO Harris Bank

    Member FDIC

    MMA

    1.95 % APY

    $ 5,000

    Min. balance for APY

    The Money Market Savings account has a competitive introductory APY. Its Relationship Rates are currently the same as the introductory rates. That’s not a guarantee of a good APY in the future, since the Relationship Rates are variable, like most banks. But it’s a good sign that the Introductory Rates match up with the ongoing rates.

    The Relationship Rates require a consumer checking or interest checking account — in addition to the money market savings account. You’ll also need a daily balance of at least $2,500 or you’ll need to make at least 10 withdrawals per statement cycle in order to be eligible for the Relationship Rate.

    The money market savings has an ATM card, but it can be used only for ATM access.

    What we like

    • Has check-writing privileges, and money market style checks are complimentary.

    • ATM access is available for this account. The ATM card can be used only at an ATM.

    • The bank rebates out-of-network ATM fees if you meet certain requirements.

    • Interest is compounded daily.

    What we don't

    • Minimum opening deposit is $1,000.

    • Relationship Rate requires either a consumer checking or interest checking account, among other requirements.

    Savings accounts

    3.2

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    OTHER SAVINGS OFFERS YOU MAY LIKE
    CIT Bank

    Member FDIC

    Savings account

    1.80 % APY

    $ 100

    Min. balance for APY

    ATMs are the highlight to the State Farm Bank savings account. The bank doesn’t charge customers for using out-of-network ATMs.

    The savings account has a complimentary ATM card available. If you use out-of-network ATMs every once in awhile, this account may be good for you. When you use out-of-network ATMs, you’ll receive up to a $10 rebate per statement cycle.

    What we like

    • Account can be opened with $100.

    • Don't need to maintain a minimum balance if you have a direct deposit.

    • Interest is compounded daily.

    What we don't

    • Other banks pay higher yields.

    CD rates

    3.8

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    OTHER CD OFFERS YOU MAY LIKE
    Goldman Sachs Bank USA

    Member FDIC

    CD

    2.15 % APY

    1 yr

    Term

    $ 500

    Min. deposit

    State Farm Bank offers a handful of fixed-rate certificates of deposit with term lengths ranging from 12 months to 60 months. The yields are not the highest offerings available in the market, but there’s a low barrier to entry. A minimum deposit of $500 is needed to open an account.

    Early withdrawal penalties are standard. For a 12-month CD, an early exit will cost six months of interest.

    What we like

    • Interest is compounded daily.

    • Account holders can decide how often they will receive interest payments.

    What we don't

    • Other banks pay higher yields.

    • Not all standard CD terms are available.

    • A higher yield is not available for larger deposits.

    Checking accounts

    3.4

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    OTHER CHECKING OFFERS YOU MAY LIKE
    Simple

    Member FDIC

    Checking account

    1.75 % APY

    $ 0

    To open

    $ 0

    To avoid fees

    State Farm Bank offers interest checking with a minimum opening deposit of $100. The account earns interest with the highest rates for those who save $2,500 or more in the account. Account holders can avoid the $10 monthly minimum balance fee if they make a direct deposit into the account or maintain a minimum average daily balance of $500.

    The other option from State Farm Bank is the traditional checking account, which can be opened with as little as $25. It does not earn interest but comes with no monthly fees and no minimum balance requirements.

    What we like

    • ATM fee rebates: $10 per statement cycle or unlimited with direct deposit.

    • First check order is complimentary.

    • Interest on balances of at least $2,500.

    What we don't

    • Balances lower than $2,500 do not earn interest.

    • Cash deposits must be made at ATMs owned by State Farm Bank or at full-service ATMs that participate in deposit sharing.

    Bank experience

    State Farm Bank offers a mobile app that lets you take care of basic banking tasks. Customer service representatives are available seven days a week (although not available 24 hours per day).

    State Farm Bank does not charge customers fees for using non-State Farm Bank ATMs, and equally important, will refund surcharges that the ATM operator charges. If you are a State Farm Bank checking, interest checking or money market savings account customer with direct deposit, you will get unlimited refunds for these surcharges. If you aren’t, the bank will still refund up to $10 in out-of-network ATM per statement cycle.

    As a bank customer, you will also have access to Apple Pay and mobile deposit capture. But if you’re choosing a bank because of its app for your iPhone, you may want to look elsewhere. Reviews of the bank’s iOS app are mixed. Reviews of the bank’s Android app, however, are more favorable.

    About State Farm Bank

    State Farm was started in 1922 by retired farmer and insurance salesman George Jacob "G.J." Mecherle. The company has grown from a single-line auto insurer to a provider of about 100 products and services across five different lines of business.

    State Farm Bank officially began operations in March 1999. The financial institution is headquartered in Bloomington, Illinois. As of year-end 2018, State Farm Bank had $16.9 billion in assets. State Farm Bank offers checking and savings accounts, loans and other products through its agents, website, call center and the mail.

    Adrian D. Garcia Twitter Created with Sketch. @ADRIANDGARCIA

    Adrian D. Garcia Twitter Created with Sketch. @ADRIANDGARCIA

    Adrian D. Garcia joined Bankrate as a data reporter in 2018. Adrian previously spent four years covering business, trends and other news stories for Denverite.com, the Fort Collins Coloradoan and other news organizations in Colorado. He graduated with a journalism degree from the University of Colorado Boulder in 2014. He participated in ProPublica's inaugural summer data institute in 2016 and the SABEW Goldschmidt Data Immersion Training in 2019.