State Farm Bank Review 2020

Published September 2020 by Adrian D. Garcia

AT A GLANCE
3.6

Bankrate Score

bank-logo

24/7 Customer Service

ATM fee refunds

State Farm will stop taking applications for new deposit accounts on Sept. 25. The bank in March announced a strategic alliance with U.S. Bank, which would assume State Farm's existing deposit and credit card accounts. State Farm deposit accounts will convert to U.S. Bank accounts on Oct. 10.

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    3.7
  • Savings
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    3.6
  • CDs
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    2.8
  • Checking
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    4.3
  • MORE HIGH-YIELD OPTIONS
    MORE HIGH-YIELD OPTIONS
    Goldman Sachs Bank USA

    Member FDIC

    Savings account

    0.60 % APY

    $ 0

    Min. balance for APY

    Goldman Sachs Bank USA

    Member FDIC

    CD

    0.85 % APY

    1 yr

    Term

    $ 500

    Min. deposit

    Goldman Sachs Bank USA

    Member FDIC

    CD

    0.85 % APY

    1 yr

    Term

    $ 500

    Min. deposit

    Overall

    3.6

    Bankrate Score

    State Farm Bank offers a variety of deposit, loan and financial card accounts. However, it will stop taking applicants on Sept. 25 as its deposit and credit card accounts begin to convert to U.S. Bank accounts. Existing deposit accounts will convert to U.S. Bank accounts on Oct. 10.

    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.

    Money market accounts

    3.7

    Bankrate Score

    The Money Market Savings account has a competitive introductory APY. Its "relationship rate" is currently the same as the introductory rate. That’s not a guarantee of a good APY in the future, since the relationship rates are variable, like they are at most banks. But it’s a good sign that the introductory rate matches up with the ongoing rates.

    The relationship rate requires 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 at least 10 withdrawals per statement cycle to be eligible for the relationship rate.

    The Money Market Savings account has an ATM card.

    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

    3.6

    Bankrate Score

    OTHER SAVINGS OFFERS YOU MAY LIKE
    Goldman Sachs Bank USA

    Member FDIC

    Savings account

    0.60 % APY

    $ 0

    Min. balance for APY

    You will need to deposit at least $5,000 to earn the highest payout. Even then, you can earn higher yields at other banks. At the very least, you will want to to keep a $100 daily balance in your savings account in order to avoid a monthly fee.

     

    What we like

    • Interest is compounded daily.

    • You can get up to $10 rebate on ATM fees per statement cycle.

    • No minimum opening deposit requirement.

    What we don't

    • Other banks pay higher yields.

    • You will need to deposit at least $5,000 to earn the highest APY.

    CD rates

    2.8

    Bankrate Score

    OTHER CD OFFERS YOU MAY LIKE
    Goldman Sachs Bank USA

    Member FDIC

    CD

    0.85 % 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 just $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

    • Only $500 deposit required to open a CD.

    • 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

    4.3

    Bankrate Score

    OTHER CHECKING OFFERS YOU MAY LIKE
    Simple

    Member FDIC

    Checking account

    0.80 % APY

    $ 0

    To open

    $ 0

    To avoid fees

    State Farm Bank offers interest checking with no minimum opening deposit requirements. The highest rates are 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. 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 fees per statement cycle.

     

    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. 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.