Rates % are unchanged as at 14 May 2011.

College Saving the Easy Way—High Interest Rates = Tax Free Income

According to Money Magazine the cost of college has risen 439 percent since 1982, but the path to the best and highest paying jobs are still paved with late night study sessions and early morning classes.  What’s a parent (or student) to do?  If you’re like most, you start shopping for bargains on used textbooks and other cost-cutting measures,  but what if you could pay for those books with tax free dollars?  Now that I have your attention, let me introduce you to the State Farm Coverdell Education Savings (ESA) Certificate of Deposit.  The cd is a fixed rate, high yield account offered in terms of 12 to 60 months.  With a low opening deposit of $500, it brings planning for college into focus.  At each maturity the cd account automatically renews until you are ready to use it.  Then you have the option of cashing out or adding additional money to the account.  All funds from the ESA are tax free as long as they are used for qualifying education expenses and they do need to be used before the beneficiary is 30 years old.

Green-up Your Golden Years with an IRA

Whether retirement is just around the corner or feels light years away, your personal portfolio becomes more important each and every day.  Individual Retirement Accounts can be a little confusing since there are two types—a traditional or Roth.  So which is which?  Traditional IRAs give you tax breaks the year you contribute.  The way I remember it is “traditional” and “contribute” are both long words.  A Roth IRA uses post-tax dollars so you avoid taxes in the future.  The way I keep this one straight because “post” and “Roth” are short words.  It may sound unsophisticated but it seems to work for me.  Now that you understand which is which, your tax advisor can give you more specific guidance about the right IRA for your financial situation.  However, regardless of the one best-suited for your needs State Farm Bank’s IRA cd interest rates are some of the best available.

Choose Your Term, Lock-in Your Rate with a Fixed Rate CD

For short or longer term goals such as financing a new car, taking that dream vacation or giving your daughter the wedding of her dreams a Fixed Rate CD can help you realize your goals with a higher interest than your regular online savings account.  No matter what your goal the State Farm Bank has a term to help you get there—from three to 60 months.  Interest rates on certificate of deposits often beat those of high yield savings accounts and they are a good way to take advantage of the best cd interest rate.  And since your money is locked in for the term of the certificate of deposit, you know nothing will stand in the way of your goal.

Simple CD Accounts, Simple Savings

There are few things easier choosing which CD Account and which term fits your needs and then making a deposit on one of State Farm Bank’s high rate cds.  But in case you are still on the fence about which product is right for you your local State Farm agent or the friendly customer support team are ready to answer your questions. Better yet, you can get an unbiased opinion by reading our State Farm Bank Review.