Other than Step Rate CDs, rates are fixed for the term of the CD. Step Rate CDs have a variable interest rate that is increased every six months. Interest is compounded daily. Payment of interest on CDs is. This information above for State Farm Bank CD Rate - 1 Year CD is provided 'as is' and solely for informational purposes, not for specific financial advice. While we aim to keep our information accurate and current, the rates. 2 year CD rates at State Farm Bank were increased from 2.32 percent with an APY of 2.35 percent to 2.47 percent with an APY of 2.50 percent. These CD rate increases at State Farm Bank are on regular CDs jumbo CDs, IRA CDs, and jumbo IRA CDs. As with any CD account, there are early withdrawal penalties. State Farm’s earlier rate reduction was temporary and intended to recognize that less driving was leading to fewer car insurance claims. The rate increases State Farm is now planning will affect.
This online rate sheet does not include all products offered by KS StateBank. For additional product and rate information, please call or stop by a branch.
| Interest Rate | APY | Minimum to Open | Notes | |
|---|---|---|---|---|
| Checking PLUS | 1.49% | 1.50% | $100 | Assuming all requirements are met within the statement cycle for balances up to $25,000; interest rate on balances over $25,000 is 0.20%, 0.20% APY. If qualifications are not met, interest rate drops to 0.15%, 0.15% APY on all balances. |
| Simple Savings | 0.15% | 0.15% | $100 | |
| Advantage Money Market ($0.01-$2,499.99) | 0.15% | 0.15% | $2,500 | |
| Advantage Money Market ($2,500-$24,999.99) | 0.20% | 0.20% | $2,500 | |
| Advantage Money Market ($25,000-$99,999.99) | 0.20% | 0.20% | $2,500 | |
| Advantage Money Market ($100,000 and over) | 0.20% | 0.20% | $2,500 | |
| 1 Year CD | 0.30% | 0.30% | $500 | |
| 1 Year Jumbo CD -- Internet Only Special | 0.30% | 0.30% | $100,000 | Must be opened online. Not available as an IRA. Cannot be opened in the name of a trust. Consumer accounts only. |
| 18 Month Jumbo CD -- Internet Only Special | 0.27% | 0.27% | $100,000 | Must be opened online. Not available as an IRA. Cannot be opened in the name of a trust. Consumer accounts only. |
| 2 Year CD | 0.35% | 0.35% | $500 | |
| 2 Year Jumbo CD -- Internet Only Special | 0.35% | 0.35% | $100,000 | Must be opened online. Not available as an IRA. Cannot be opened in the name of a trust. Consumer accounts only. |
| 27 Month Jump Up CD | 0.30% | 0.30% | $1,000 | Jump Up option allowed one time during term of CD if rate of same term/product goes up. Requests for “jump” can be submitted only in person, by telephone or by Online Banking Secure Message. |
| 3 Year CD | 0.40% | 0.40% | $500 | |
| 3 Year Jumbo CD -- Internet Only Special | 0.40% | 0.40% | $100,000 | Must be opened online. Not available as an IRA. Cannot be opened in the name of a trust. Consumer accounts only. |
| 4 Year CD | 0.50% | 0.50% | $500 | |
| 4 Year Jumbo CD -- Internet Only Special | 0.50% | 0.50% | $100,000 | Must be opened online. Not available as an IRA. Cannot be opened in the name of a trust. Consumer accounts only. |
| 5 Year CD | 0.60% | 0.60% | $500 | |
| 5 Year Jumbo CD -- Internet Only Special | 0.60% | 0.60% | $100,000 | Must be opened online. Not available as an IRA. Cannot be opened in the name of a trust. Consumer accounts only. |
| 7 Year CD | 0.75% | 0.75% | $500 |
Individual Retirement Accounts (IRAs) are available in branch only, and are not available for online account opening.
FOR ALL ACCOUNTS LISTED: APY means Annual Percentage Yield. Rates are effective as of 11/20/2020 and are subject to change without notice. You can call 800-588-6805 for current rate information. APY assumes the interest rate remains constant and all interest is credited to the account monthly. Interest begins to accrue no later than the business day we receive credit for the deposit of non-cash items (for example, checks). If an interest bearing account is closed before the interest is credited, you will receive the accrued interest. Certain restrictions may apply. Fees may reduce your earnings.
CHECKING PLUS: The statement cycle cutoff date is the 5th of each month (or the first business day thereafter if the 5th falls on a weekend or holiday). Interest rate and Annual Percentage Yield (APY) may change after the account is open. The minimum balance to obtain the APY is $0.01. The daily balance method is used to calculate interest. This method applies a daily periodic rate to the principal in the account each day. Avoid the $2 Paper Statement fee for this account by signing up for Online Banking and E-Statements or by maintaining a balance of $5,000 or more.
SIMPLE SAVINGS: Interest rate and Annual Percentage Yield (APY) may change after the account is open. The minimum balance to obtain the APY is $0.01. The daily balance method is used to calculate interest. This method applies a daily periodic rate to the principal in the account each day. Avoid the $2 Paper Statement fee for this account by signing up for Online Banking and E-Statements.
ADVANTAGE MONEY MARKET: Interest rate and Annual Percentage Yield (APY) may change after the account is open. The minimum balance to obtain the APY is $0.01. The daily balance method is used to calculate interest. This method applies a daily periodic rate to the principal in the account each day. Avoid the $2 Paper Statement fee for this account by signing up for Online Banking and E-Statements.
CERTIFICATES OF DEPOSIT: The daily balance method is used to calculate interest. This method applies a daily periodic rate to the principal in the account each day. Interest will be compounded quarterly and will be credited to the account quarterly. You may be charged a substantial penalty for early withdrawals. Jump Up option allowed one time during term of the Jump Up CD if rate of same term/product goes up. Requests for “jump” can be submitted only in person, by telephone or by Online Banking Secure Message.
- Competitive interest rates for high earnings
- Relatively low minimum deposit
- No short-term account options
- Anyone looking for guaranteed high returns
Update: As of Sep. 26, 2020, State Farm Bank is no longer accepting new deposit account applications. If you're looking for a new bank account, check out our lists of the best savings accounts, best checking accounts and best CD rates. U.S. Bank purchased State Farm's deposit accounts, so current customers can also check out our review of U.S. Bank.
You might know State Farm for its insurance policies, but you can also open a few bank accounts with the institution including certificate of deposit (CD) accounts. You have six CD options available to you from 12 to 60 months long. This doesn’t allow for much short-term saving since you’ll have to wait at least a year to access your full earnings. Still, the range of terms make it easy to save toward various expenses whether an expense is coming up in a year or five years.
Plus, State Farm offers high CD rates. Its rates do benefit longer-term accounts more than the shorter terms of 12 and 24 months. So while you can still open those accounts to grow your funds, they won’t generate large yields like the accounts of 30 months or longer.
| Fixed-Rate CD | Minimum Deposit | APY | |
| 12 Month | $500 | 0.25% | Compare CD Rates |
| 24 Month | $500 | 0.25% | Compare CD Rates |
| 30 Month Special Term | $500 | 0.25% | Compare CD Rates |
| 36 Month | $500 | 0.25% | Compare CD Rates |
| 48 Month | $500 | 0.25% | Compare CD Rates |
| 60 Month | $500 | 0.25% | Compare CD Rates |
12-Month Term CD Interest Rate Comparison
Overview of State Farm CDs
State Farm CDs are pretty straightforward. They don’t come with any rate boosts or extra benefits. However, State Farm’s competitive CD rates are a big perk all on their own. Earning at such high rates enables you to really grow your savings. Keep in mind that the shortest State Farm CD term lasts for 12 months which means you cannot access any part of your initial deposit for a year. You can choose to receive interest payments from your CD by check, deposited into a State Farm Bank account or simply added back into the CD. Adding interest back into the CD does allow for more growth within the account, especially with daily compounded interest.
The date your account term ends is called maturity. After your account reaches maturity, you can choose to leave the account alone for automatic renewal. You could also choose to make a withdrawal or an additional deposit. In that case, you have a grace period of 10 days starting after the maturity date. You can change the length of the term at this time, too. If you do choose automatic renewal, your balance will continue to earn interest through the grace period. Special Term CDs will renew automatically into the next highest standard term.
Should you need to make a withdrawal before this grace period, you’ll face a penalty. If you make the withdrawal within six days of your initial deposit or a previous withdrawal, you’ll have to pay a penalty of seven days’ interest on the principal withdrawn. For withdrawals after those first six days from a CD of 11 months or less, you’ll pay an amount equal to 90 days’ interest. On accounts of 12 to 23 months, the penalty increases to 180 days’ interest. Early withdrawals from accounts of 24 to 47 months assess a penalty of 365 days’ worth of interest and withdrawals from a CD term of 48 months or more charge a penalty of 545 days’ interest.
These penalties often outweigh the amount you’re withdrawing in the first place, so be prepared to stash away your deposit for the entire length of your CD term. That way, you can avoid penalties and end up with a big final balance when the account matures.
How Much You Earn With State Farm Certificate of Deposits Over Time
You stand to earn the most out of a State Farm CD if you open an account of 30 months or longer. These accounts have the highest rates among the bank’s CDs since the first two CDs of 12 and 24 months have considerably lower rates. You can see below that the 12-month CD earns only a few dollars over time if that.
State Farm does compound interest daily which works to grow your money faster. This means your deposit will earn interest tomorrow, that new amount will earn interest the next day and so on. It allows your initial deposit to earn more efficiently than monthly compounding, for example.
| Initial Deposit | 12-Month CD | 30-Month Special Term CD | 60-Month CD |
| $500 | $501 | $503 | $506 |
| $2,500 | $2,506 | $2,516 | $2,531 |
| $5,000 | $5,013 | $5,031 | $5,063 |
| $10,000 | $10,025 | $10,063 | $10,126 |
How State Farm CDs Rates Compare to Other Banks
When it comes to CD rates, State Farm competes with some of the best online banks. Like Marcus by Goldman Sachs, State Farm’s two shortest CD terms have the lowest rates when compared to its longer-term counterparts. Still, these rates come in much higher than the maximum rates of big banks like Chase.
Another big online bank name is Ally Bank, which doesn’t require a minimum deposit, unlike State Farm. Ally’s High Yield CDs also earn according to balance tiers. This means that a higher deposit can snag you an even better rate. Ally also offers two more types of CD accounts so you can better find an account that fits your financial needs. For example, one type allows you to make an early withdrawal without facing a penalty.
State Farm Bank
| CD Account | State Farm | Ally | Marcus by Goldman Sachs | Chase |
| 6 Month | - | 0.25% | 0.15% | 0.02% |
| 1 Year | 0.25% | 0.60% | 0.55% | 0.02% |
| 3 Year | 0.25% | 0.65% | 0.55% | 0.02% |
| 5 Year | 0.25% | 0.85% | 0.60% | 0.02% |
State Farm Us Bank Cd Rates
Compare State Farm to Other Competitive Offers
Should You Get a State Farm CD Account?
State Farm Cd Rates Today
You should consider getting a State Farm CD account if you have long-term savings goals. The shortest CD term here lasts for 12 months which differs from most banks’ CD offerings which typically start at three or six months. You’ll also have to start with the 30-month State Farm CD to really take advantage of the bank’s high interest rates. Otherwise, you’ll see minimal growth with a 12-month or 24-month CD.
Still, State Farm does offer great interest rates that you may not want to miss. Plus, you can maximize your earnings over time by creating a CD ladder. This involves opening multiple CDs with different term lengths at the same time. That way, you can receive payments over the coming years when each CD matures.