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State Farm Bank Review: Checking, Savings and CDs

Banking, CDs, Checking Accounts, Savings Accounts
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State Farm Bank

  • ATM fees: None. Bank reimburses some or all fees charged by out-of-network ATMs.
  • APY on five-year CD: 2.20%
  • Minimum balance in checking account to earn interest: $25,000

State Farm Bank

State+Farm
Learn more
at State Farm Bank
Though perhaps not as well-known as its insurance business, State Farm Bank is an online institution that offers an array of banking products, services and deposit accounts.

Our Ratings
Checking4.0 stars out of 5
Savings3.5 stars out of 5
Certificates of deposit (CDs)3.5 stars out of 5
Customer experience3.5 stars out of 5
Overdraft fees3.0 stars out of 5
Overall4.0 stars out of 5

Read on for more details about State Farm banking, including checking and savings accounts, CDs, customer experience and fees.

Checking

4.5 stars out of 5
4.5 / 5.0

You can open a State Farm Bank checking account with a $25 minimum deposit. The regular checking account requires no minimum balance and charges no monthly fee.

State Farm also offers interest checking. For that, you’d need a $100 minimum opening deposit. The bank waives its $10 monthly minimum balance fee if you have a $500 minimum balance and at least one direct deposit during that month.

You can make cash deposits at ATMs owned by State Farm that take deposits or at ATMs in the NYCE, Visa or Plus deposit sharing network. To find ATMs in the deposit sharing network in your area, call 877-734-2265.

ProsCons
  • There’s no monthly fee for maintaining a checking account
  • With checking accounts, you get unlimited rebates on fees for using out-of-network ATMs, but you must make a direct deposit each statement cycle to qualify
  • Interest checking accounts don’t earn interest unless you have a minimum $2,500 balance
  • State Farm doesn't have branches for in-person banking, though you can visit, email or call one of its 18,000 agents

Account reviewed for rating: State Farm Checking.

» MORE: NerdWallet’s best checking accounts of 2017

Savings

3.5 stars out of 5
3.5 / 5.0

You can open a State Farm Bank savings account with $100 or more. Interest rates range from 0.10% to 0.30% depending on balance amounts.

State Farm’s money market savings account offers interest rates ranging from 0.30% for balances of $100 to $9,999, to 0.45% for balances of $25,000 or more.

ProsCons
  • There's no monthly fee on savings or money market savings accounts if you get at least one direct deposit per month
  • Lowest interest rate on savings is 0.10% on balances under $25,000. That’s better than the 0.06% average national rate.
  • Money market account pays 0.30% interest on a $2,500 balance. National average rate is 0.08%
  • Considerably higher interest rates can be found elsewhere
Account reviewed for rating: State Farm Savings.

» MORE: NerdWallet’s best savings accounts of 2017

Certificates of deposit

3.5 stars out of 5
3.5 / 5.0

State Farm Bank offers a range of CDs with terms from one year to five years.

ProsCons
  • You can open a CD with $500 or more
  • Rates for CDs with one- to five-year terms range from 0.10% APY to 2.20% APY. While these are better than national averages for most terms, you can find better CD rates elsewhere.

» MORE: NerdWallet’s best CD rates

Customer experience

3.5 stars out of 5
3.5 / 5.0

State Farm Bank’s website isn’t fancy, but it’s loaded with information about its accounts that, for the most part, is easy to find. That’s not always a given at banks’ websites.

Customers who are new to banking might find the online video demos helpful. They cover subjects like how to manage your accounts, how to set up automatic bill pay, and how to transfer money between accounts.

While State Farm Bank doesn’t have live 24/7 customer phone service, it does offer extended hours, from 4 a.m. to 9 p.m. PT, Monday through Friday, and weekends and holidays from 6 a.m. to 6 p.m. PT. If you need a personal touch, you can visit, call or email a State Farm agent in your area.

State Farm’s Pocket Agent mobile app lets you deposit checks, pay bills and credit cards, check balances, transfer money and more. Users rate the iOS and Android apps three stars and four stars, respectively.

State Farm customer service can be reached via Facebook, Twitter and other social media. The company also offers chat service when you apply online for some deposit accounts.

Overdraft fees

3.0 stars out of 5
3.0 / 5.0

State Farm charges overdraft and returned item fees — $25 per item, capping fees at $75 in a business day. These aren’t low fees, but they’re below the national big-bank median of $34.

You can set up overdraft protection by linking your account to another State Farm account, which can include checking, interest checking, savings, money market savings or a State Farm Visa credit card. You can choose up to two protecting accounts, one primary and one secondary. There’s a $3 fee for each transfer.


» MORE:
 NerdWallet’s best high-yield online savings accounts of 2017

The bottom line

  • State Farm Bank doesn’t charge ATM fees, and it refunds some or all fees that you might rack up at out-of-network ATMS.
  • Although the return on State Farm’s savings accounts is higher than the national average, you can find better savings interest rates elsewhere, including at other online-only banks.
  • State Farm offers an interest checking account, but you won’t earn interest if you have less than $2,500 in the account.
  • State Farm owns and operates only about 50 ATMS nationwide. But State Farm customers can make withdrawals, transfers and balance inquiries at more than 2.6 million ATMs belonging to the NYCE, Visa or Plus networks in the U.S. and Europe. Customers who sign up for direct deposit get unlimited rebates on fees and surcharges incurred for using ATMs that aren’t in State Farm’s network.

» MORE: NerdWallet’s best national banks of 2017

Juan Castillo is a staff writer at NerdWallet, a personal finance website. Email: jcastillo@nerdwallet.com. Twitter: @JCastilloNerd.

Updated July 3, 2017.


Ratings methodology

NerdWallet’s overall ratings for banks and credit unions are weighted averages of several categories: checking, savings, certificates of deposit or credit union share certificates, customer experience and overdraft fees.

Factors we consider, depending on the category, include rates and fees, ATM and branch access, account features and limits, user-facing technology, customer service and innovation.

The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.