State Farm Bank Review 2019

State Farm Bank Logo

3.8/5

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.

24/7 Customer Service
ATM Fee Refunds

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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.

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.

 Pros

  • 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.

 Cons

  • No brick-and-mortar locations.
  • Other banks pay higher yields.
  • Reviews of the bank's iOS app are mixed.

State Farm Bank Services

CDs Rating

3.8/5

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.

 Pros

  • Interest is compounded daily.
  • Account holders can decide how often they will receive interest payments.

 Cons

  • Other banks pay higher yields.
  • Not all standard CD terms are available.
  • A higher yield is not available for larger deposits.

CDs available from other banks

Goldman Sachs Bank USA Logo
2.70% APY
$500 MINIMUM DEPOSIT
Rising Bank  Logo
2.87% APY
$1,000 MINIMUM DEPOSIT
Live Oak Bank Logo
2.85% APY
$2,500 MINIMUM DEPOSIT
Savings Rating

3.2/5

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.

 Pros

  • Account can be opened with $100.
  • Don't need to maintain a minimum balance if you have a direct deposit.
  • Interest is compounded daily.

 Cons

  • Other banks pay higher yields.

State Farm Bank Savings

0.30 % APY
Savings
$10,000
MINIMUM BALANCE FOR APY
0.10 % APY
Savings
$100
MINIMUM BALANCE FOR APY

Savings accounts available from other banks

Goldman Sachs Bank USA Logo
2.25% APY
$0 MINIMUM DEPOSIT
Vio Bank Logo
2.46% APY
$100 MINIMUM DEPOSIT
UFB Direct Logo
2.45% APY
$10,000 MINIMUM DEPOSIT
Checking Rating

3.4/5

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.

 Pros

  • 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.

 Cons

  • 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.
MMAs Rating

3.7/5

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.

 Pros

  • 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.

 Cons

  • Minimum opening deposit is $1,000.
  • Relationship Rate requires either a consumer checking or interest checking account, among other requirements.

State Farm Bank MMAs

2.25 % APY
Money Market
$1,000
MINIMUM BALANCE FOR APY

MMAs available from other banks

Capital One Logo
2.00% APY
$10,000 MINIMUM DEPOSIT
Sallie Mae Logo
2.30% APY
$0 MINIMUM DEPOSIT
TIAA Bank Logo
2.15% APY
$5,000 MINIMUM DEPOSIT
Bank Experience Rating

4/5

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.

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