State Farm Bank Review: A Flexible Online Bank With Low Fees

A great place to start this State Farm Bank review is to look at some of the things they do well and some of the things they could improve on. Here’s a quick rundown:

About the State Farm Bank

State Farm was founded in 1922 when retired farmer and insurance salesman GJ Mecherle sold his first auto insurance policy for $ 11.17. Today, the company insures more cars and homes than any other carrier in the United States. In 1999, State Farm began offering consumer banking products, including checking accounts, savings accounts, certificates of deposit, and credit cards. Here is a brief overview:

State Farm Bank Products

State Farm Bank checking accounts

State Farm’s standard checking account is Easy Checking, but you can also sign up for the Gold Checking and Platinum Checking packages.

In addition, there is a secure debit account that does not have any check or overdraft fees. Easy Checking has no monthly maintenance fees for the first 12 months, after which the fee is $ 6.95 per month, unless you meet certain requirements. Gold Checking has a monthly service charge of $ 14.95 which can be waived, while Platinum Checking has a fee of $ 24.95 which can also be waived. Platinum Checking also earns interest.

Characteristics

• Monthly Easy Checking fees waived if you are 65 or older, or have combined monthly direct deposits of $ 1,000 or more or an average account balance of $ 1,500
• Exemption from monthly Gold Checking fees if you have a personal loan, line, mortgage, or credit card open with the American Bank
• Platinum Checking monthly fees waived if you have $ 25,000 in combined personal deposits or credit balances with US Bank, and / or investments through US Bancorp Investments
• 0.01% APY Checking Platinum
• First check order free

Advantages

• Overdraft protection available
• Interest bearing option

The inconvenients

• High monthly fee unless you qualify for waiver
• Moo APY compared to other similar banks

State Farm Savings Account

State Farm offers its only standard savings account with a minimum opening deposit of $ 25. The monthly service charge is $ 4, but it can be waived if you are under 18 or maintain a minimum daily balance of $ 300 or an average monthly collected balance of $ 1,000.

Characteristics

• Overdraft protection when you link your savings to your checking account
• Automated savings options
• E-statements available

Advantages

• Low monthly fees that can be waived
• Interest compounded daily

The inconvenients

State Farm Money Market Accounts

State Farm Elite Money Market is the standard account. You can also sign up for a Money Market Savings Account, Platinum Select Money Market Account, and Money Market Retirement Account.

Characteristics

• Interest compounded daily
• Overdraft protection available
• Check Writing Privileges with Elite Money Market
• APY up to 0.05%
• Removed $ 10 monthly maintenance fee by maintaining a minimum daily balance of $ 10,000

Advantages

• ATM access
• No monthly fees for the first 12 months
• Low minimum opening deposit of $ 100 for Elite Money Market

The inconvenients

State Farm Bank CD Accounts

State Farm offers standard CDs as well as Jumbo CDs, Specials CDs, Step Up CDs, and Trade Up CDs. The terms range from three months to five years. With CD Trade Up, you can lock in a higher rate just once during your initial term.

Characteristics

• $ 500 minimum to open
• Duration of three months to five years
• Guaranteed rate for the duration of the term
• APY up to 0.25% for Standard and Jumbo CDs
• APY up to 0.40% for special CDs
• Mixed APY of 0.35% for the Step Up CD

Advantages

• Competitive APY rates
• For Step Up CDs, prices increase every seven months for 28 months

The inconvenients

• Customers will not earn a higher APY for depositing more money

Banking experience

State Farm is an online bank only, so you will not be able to visit branches. But it provides online banking and a mobile app that lets you manage all the basic functions of your account. State Farm also gives customers access to an extensive network of US ATMs.

Customer service

You can contact customer service seven days a week by calling 877-734-2265 for bank accounts and 877-734-8472 for credit cards. Hours are Monday to Friday 6 a.m. to 11 p.m. CST and weekends 8 a.m. to 8 p.m. CST.

Digital experience

State Farm’s website and mobile app lets you manage a variety of banking tasks, including pay bills, transfer funds and deposit checks right from your mobile phone. The app is rated 4.7 out of 5 stars out of google play and 4.8 out of 5 stars on the Application store.

How to open an account

All of State Farm’s banking services are offered through its partnership with US Bank. To get started, you’ll apply online at the US Bank website.

Key information

Customer Service Number:

• 877-734-2265 for bank accounts
• 877-734-8472 for credit cards

Routing number: 071174431

State bank charges

In addition to the monthly service fee, State Farm charges fees for certain activities and services. Here’s a quick rundown:

State Farm Bank vs Competitors

Before deciding if State Farm is the best option for you, take the time to compare it to other banks. Here’s how it compares to some rivals:

State Farm vs. Ally Bank

State Farm provides access to one of the largest ATM networks in the United States, but Ally offers an APY of 0.10% at 0.25%0.25% on his checking account, which gives him a big advantage in this regard.

State Farm vs. Capital One

State Farm helps customers avoid fees by providing overdraft protection. However, Capital One offers an APY of up to 0.40% on his savings accounts, which is much higher than State Farm’s APY.

State Farm vs Comenity

State Farm has a much broader product line than Comenity, which specializes in high yield savings accounts and CDs. But Comenity’s APYs 0.60% for their savings accounts and between 0.60% and 0.90% APY for their CD accounts are much higher than those offered by State Farm.

Final take

State Farm is a decent option if you are looking for an online bank. It offers a full range of products and services and a popular mobile application. And thanks to the bank’s partnership with US Bank, you’ll have access to one of the largest ATM networks in the country.

Editor’s favorite

Having access to American bank ATMs is a huge plus for an online bank like State Farm, giving customers the ability to access their money in many places.

Prices are subject to change; unless otherwise indicated, rates are updated periodically. All other account information is correct as of February 4, 2021.

This content is not provided by the State Farm Bank. Any opinions, analyzes, critiques, or recommendations expressed in this article are those of the author alone and have not been reviewed, endorsed or otherwise approved by The State Farm Bank.