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State Farm Bank’s CD review

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Known for insurance offerings, this bank offers terms ranging from 12 to 60 months.

State Farm Bank’s CDs start at 0.25% APY for a 12-month term. But they’re only available online and you won’t find any short-term CD options.

0.25%

1-year APY

0.25%

3-year APY

0.25%

5-year APY

Details

Minimum deposit to open$500
Interest compoundingDaily
1-year APY0.25%
2-year APY0.25%
3-year APY0.25%
30-month APY0.25%
4-year APY0.25%
5-year APY0.25%
Early withdrawal penalty90 days interest for terms of 11+ months or $25, whichever is greater (applies to all terms)
180 days interest for terms of 12 to 23 months or $25, whichever is greater (applies to all terms)
365 days interest for terms of 24 to 47 months or $25, whichever is greater (applies to all terms)
545 days interest for terms of 48 + months or $25, whichever is greater (applies to all terms)

How do I open a State Farm Bank CD account?

You can open a State Farm Bank CD online or by calling 877-734-2265, or visiting a State Farm office.

How to open a State Farm Bank CD online:

  1. Go to the provider’s site and follow the steps to apply.
  2. From the State Farm website, click on Banking and then Certificates of Deposits from the top menu.
  3. Click Apply Today.
  4. Gather the appropriate information and set aside five to ten minutes.
  5. If you’re a State Farm customer, log in to your existing account. Otherwise, click Continue to proceed.
  6. Agree to the terms of service and click Continue.
  7. Select Certificate of Deposit, either under $100,000 or over $100,000.
  8. Select if one or two people will use the account and click Continue.
  9. Enter your name, date of birth, Social Security number and contact information.
  10. Continue through the application until it’s completed.
  11. Fund your account.
  12. Once your application is approved, log in and view your CD.

Eligibility

To open a State Farm Bank CD, you’ll need to satisfy the following requirements:

  • At least 18 years old
  • Social Security number or Tax ID number
  • Valid US address
  • US bank or check to fund the CD

Required information

While filling out the application, you’ll need the following information:

  • Name, address and date of birth
  • Phone number and email address
  • Social Security number
  • Driver’s license
  • Bank account numbers
  • Employment status

Funding options

You’ll need to fund your account during the application process by either:

  • Mail or upload a check
  • Wire transfer

Benefits of a State Farm Bank CD

State Farm Bank’s CDs offer a number of benefits:

  • Daily compounded interest. Your money earns compounded interest every day at a fixed rate.
  • Automatic renewals. You can automatically renew 30-month special term CDs into the next highest standard term.
  • Personal and business CDs. Businesses can open a CD with the same rates as a personal CD.
  • Term options. Choose between a 12-, 24- or 30-month special term or a 36-, 48- or 60-month CD.
  • Partial withdrawals. You have the option to take out some or all of your CD before it reaches maturity but you’ll pay an early withdrawal penalty.

What to watch out for

State Farm Bank’s CD offerings are fairly standard, though there are a few drawbacks:

  • Minimum deposit. There’s a $500 minimum deposit to start a CD — no matter which term you choose.
  • Online only. State Farm Bank has no physical branches, so you’ll have to do everything online or over the phone.
  • No short-term options. The shortest term available is 12 months, which may turn away people looking for three- or six-month options.

Compare with other CDs

Name Product 1-year APY 18-month APY 2-year APY 3-year APY 5-year APY
CIT Bank Term CDs
0.3%
0.3%
0.4%
0.4%
0.5%
Radius Bank CDs
0.5%
0.5%
0.5%
0.5%
0.5%
BBVA CD
0.1%
0.1%
0.1%
Discover CDs
0.5%
0.5%
0.5%
0.55%
0.6%
Discover IRA CDs
0.5%
0.5%
0.5%
0.55%
0.6%
Barclays Online CDs
0.3%
0.3%
0.3%
0.3%
0.3%
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Compare up to 4 providers

How do I cash in a CD?

Once your CD reaches its maturity date, you’ll have a 10-day grace period to:

  • Change the length of the term
  • Add funds to the CD
  • Withdraw funds without a penalty

If you cash the CD before it reaches maturity, or after the 10-day grace period, you’ll face penalties. The exact penalty amount will depend on when you make a withdrawal, how long the CD has been active, and when you made your last withdrawal.

Special Term CDs renew automatically at maturity into the next highest Standard Term CD. The early withdrawal penalty will be based on the renewal term after the initial maturity date.

What other savings products does State Farm Bank offer?

In addition to CDs, State Farm offers the following savings options:

  • Basic savings account. Simple savings account with a low APY rate.
  • Money market savings. Earns a 0.50% APY and requires an opening deposit of $1,000.
  • Health savings account. No minimum opening deposit with an annual service fee of $25 and the ability to write checks or transfer funds.

Bottom line

State Farm Bank’s CDs offer competitive interest rates with standard term lengths, an automatic renewal option and CD options for businesses. But if you’re looking for a CD with short-term options and no minimum deposits, consider different options to find one that best suits your needs.

Frequently asked questions

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