The fixed rate certificates of deposit offered by State Farm Bank have lost some of their competitive edge.  As CD interest rates moved lower over the past several weeks, the State Farm CD rates have moved down as well.  The CD rate reductions in some maturities of State Farm CDs have dropped measurably more than others.

State Farm Bank is part of the Start Farm Mutual Company and offers a number of bank savings and lending products predominantly online.  The deposit products offered by State Farm Bank are FDIC insured.  The bank has grown to be the 74th largest bank in the U.S. based on total assets. 

State Farm Bank promotes standard CDs that are available in amounts under $100,000.00 and jumbo CDs with deposit balances at $100,000.00 or greater.  The bank also offers select, special terms CDs.  Over the past 2 months, the bank’s special term CD rates and long term CD rates have absorbed the greatest loss in yield while the short term CD rates have remained mostly unmoved.

Current State Farm CD rates for the standard CDs with amounts under $100,000.00 include the following:

3 month CD interest rate 0.25%  
6 month CD rate from State Farm Bank is 0.37%  
12 month bank CD rate 0.70%  
24 month CD interest rate 0.75%  
36 month CD rate 1.07%  
48 month CD rate 1.38%  
60 month CD rate 1.97%  

Special term CD rates and terms promoted by the bank include the following:

9 month CD rate 0.70%
30 month CD rate 1.05%

There is a minimum opening balance of $500.00 for the bank CDs.  All CD interest rates are current as of this publication date but are subject to change at any time.  Additional account conditions may apply.

State Farm Bank CD rates as well as the interest rates offered on other bank deposit products may vary by geographic region of the account holder.  A quick check of current CD rates in Florida, CD rates in California and CD rates in Illinois offered by State Farm indicated no change on the standard CD rates or special term CD rates.

Banks CDs and other financial products offered by State Farm Bank are serviced by State Farm Agents, the bank’s telephone call center, via mail, and with State Farm online banking.  State Farm Bank was established in 1999 and is headquartered in Bloomington, Illinois.  State Farm Bank is chartered as a Savings Bank; the primary regulator of the bank is the Office of the Comptroller of the Currency.

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