State Farm Bank Review

How does your bank stack up?

  • Financial Rates: 4.0 Star Icon
  • Customer Service: 5.0 Star Icon
  • Website Experience: 5.0 Star Icon
  • Bank Fees: 4.0 Star Icon

Pros:

  • Reimbursement of ATM fees
  • Variety of personal deposit accounts
  • Most accounts have low opening amounts
  • Money market has competitive rates

Cons:

  • Accounts have monthly fees
  • High opening balance for MMA
  • Highest interest only introductory
  • Daily limits for ATM withdrawals

What You Need to Know

State Farm Bank reimburses for fees charged at non-State Farm Bank ATMs. Fees are reimbursed if you have a direct deposit into the account you are withdrawing money from. If you do not have a direct deposit into that account, State Farm Bank will reimburse up to $10 each month in ATM fees.

A variety of different accounts are available through State Farm Bank. They offer a regular checking account and an interest-earning checking account. Savings and money market accounts are available. Accounts for minors, education, and retirement accounts are offered. CD terms range from 12-months to 5-years.

Most State Farm personal deposit accounts have low opening amounts. The saving account requires $100 to open. The regular checking account only requires $25. To open the interest checking account requires $100. Each of the different CDs requires $500 to open.

The State Farm Bank money market account offers a competitive interest rate. That account offers interest that is competitive with other online accounts. After the introductory period, met the qualifications to earn the competitive rate.

State Farm Bank accounts have a monthly fee and required balances to keep in the accounts. The fees range from $3 to $10 each month. The amounts required to keep in the accounts ranges from $100 to $500 for personal accounts. Having an electronic direct deposit into the account each month will waive the monthly fees.

The State Farm Bank money market earns competitive interest, but it has the highest required balances. To open this account requires $1,000. Waive the fee for this account by having a direct deposit into the account and keeping a $500 balance.

The most competitive rate is only an introductory rate for the money market account. You will receive the introductory rate for the first five billing cycles. After that time, if you have another State Farm qualifying account, you will earn the Relationship Rates which are lower, but still competitive.

State Farm Bank limits how much money you can withdraw from an ATM each day. The limit for State Farm Bank personal deposit accounts is $500 per day. There is also a limit to how much you can make in purchases each day. The purchase limit for debit cards is $3,500 per business day.

Cool Things

Relationship Rates

To receive Relationship Rates requires a State Farm Bank checking and money market account under the same ownership. To get the Gold Rate requires keeping a set daily balance or a set number of withdrawals along with a credit card. If the qualifications are not met, you receive the standard rates on accounts.

Financial Calculators

The State Farm Bank website offers a variety of financial calculators. There are calculators for paying off debt and emergency funds. There is a calculator for retirement and monthly budgeting. There are calculators for paying off credit card debt, investments, and loans. Using these different calculators help you better know your finances before big decisions.

History

State Farm started in 1922 by a retired farmer and insurance agent, George Jacob Mecherle. He started this company to operate fair and treat customers well. When it first opened, State Farm has a single line of auto insurance.

Today State Farm insures more cars and homes than any other company in the United States. They now offer more than 100 different products and services. State Farm has 19,000 agent offices. They have nearly 65,000 employees.

State Farm Bank offers personal deposit accounts as well as business accounts. Those personal accounts including checking, savings, MMA, and CDs.

Awards and Recognition

  • "Corporate Social Responsibility Leadership Award" in 2017
  • "Best Companies for Multicultural Women" in 2018
  • "Most Admired Company" in 2018
  • Ranked number 36 on the Fortune 500 list of largest companies

Giving Back

State Farm gives back to the communities they serve through scholarships. They offer a National Merit Scholarship for $2,500. They offer 100 scholarships ranging from $3,000 to $8,000. Recipients are students who have high academics and associates of State Farm employees.

Good Neighbor Citizenship has awarded $1.2 million in grants for green and eco-friendly activities. In 2009, GNC awarded $10,000 to an Eco Education project in St. Paul, Minnesota. This project teaches community projects and professional development. Over 13,000 inner-city children have benefitted from this project.

Frequently Asked Questions

Is This Bank FDIC insured?

Yes. State Farm Bank is FDIC insured. The FDIC is an agency of the United States government that protects funds deposited in banks, up to $250,000 per customer, per bank. The money deposited in FDIC insured banks means money is backed by the full faith and credit of the United States government.

How do I access my money?

With checks, ATM or debit cards, electronic transfers, and bill pay.

Does this bank offer mobile banking?

Yes. With the State Farm Bank app, you can attend to your banking needs as well as your State Farm insurance needs. Remote check deposit and roadside assistance are available through the mobile app.

Is this a good bank?

State Farm Bank has a variety of different accounts. Most of their accounts offer competitive interest rates. Answer questions for your account online or by contacting a State Farm agent.

Is this bank free?

No. Each of the accounts has a monthly fee. Waive the fee by having an electronic direct deposit into the accounts. The fees range from $3 to $10 each month, depending on the account.

Is this bank secure online?

State Farm Bank security complies with federal and state laws. They monitor their computer networks and maintain procedural safeguards to protect customer information.

Does this bank offer competitive interest rates?

Some accounts offer competitive interest rates, but not all. To get the competitive interest rates for some accounts requires a set balance. The money market account and CDs offer the most competitive interest rates.

Can I use this bank for my business accounts?

Yes. State Farm Bank offers business money market accounts and business savings accounts. The interest rates for the business accounts are competitive.

How is the online bank different from the online banking my bank offers?

The interest rates are higher than most brick and mortar bank accounts. Everything for your account is online.

Do their checking accounts pay interest?

Yes. The State Farm Bank earns interest if you have at least $2,500 in the checking account. Balances under that amount do not earn interest.

How do I reach customer service?

By phone, email, mail, or by contacting a State Farm agent. Customer service has specific hours. They are available from 6 a.m. to 11 p.m. Monday through Friday. On Saturday and Sunday, they are open from 8 a.m. to 8 p.m. All is Central Time. You can follow State Farm on Facebook, Twitter, YouTube, LinkedIn, and Flickr.

Does this bank offer bill pay?

Yes. Free bill pay is available with a State Farm Bank checking and money market account.

Can I deposit cash?

Yes, at certain ATMs. Make deposits also by electronic transfers, direct deposits, wire transfers, and through the app. You can send a check deposit through the mail or UPS.

How long do transfers take?

Online and wire transfers are available the same day. Transfers to an external bank account are available the next day.

Can I sign up for direct deposit to this account?

Yes. Money can be directly deposited into State Farm Bank accounts. Having money directly deposited allows for unlimited ATM fee reimbursements. Direct deposits also help waive the monthly account fees.

Bank Contact Information

State Farm Bank
PO Box 2316
Bloomington, IL 61702-2316

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