State Farm CD Rates: July 2024

State Farm CD Rates

Chances are decent that you’re a State Farm customer, given that it covers nearly one out of every five privately owned cars on the road. If so, you might have seen advertisements for certificates of deposit (CDs) available through State Farm Bank.

It may be a convenient place to do your banking and there are a few types to choose from, but State Farm CD rates tend to be very low overall outside of a few special terms, especially compared to the best CD rates available. Keep reading to learn if State Farm’s CDs are worth your time.

State Farm’s CD rates may vary by location, and the rates listed below may not be available in all ZIP codes. The APYs listed below use Hennepin County, Minneapolis (home of U.S. Bank's headquarters).

Standard CD Account Overview

CD Term	CD Amount	APY
3 months	$500 or more	0.05%
6 months	$500 or more	0.05%
9 months	$500 or more	0.05%
12 months	$500 or more	0.05%
18 months	$500 or more	0.05%
24 months	$500 or more	0.05%
36 months	$500 or more	0.10%
48 months	$500 or more	0.15%
60 months	$500 or more	0.25%

Special CD Account Overview

CD Term	CD Amount	APY
7 months	$1,000–$250,000	4.75%
11 months	$1,000–$250,000	4.00%
15 months	$1,000–$250,000	3.75%

See the best CD rates today before choosing the CD that is best for you.

Step-Up CD Account Overview

CD Term	APY	Blended APY
28 months	0.05% for first 7 months; 0.25% for next 7 months; 0.45% for next 7 months; 0.65% for next 7 months	0.35%

Trade-Up CD Account Overview

CD Term	CD Amount	APY
30 months	$1,000–$250,000	0.10%
60 months	$1,000–$250,000	0.40%

State Farm CDs: Key Features

State Farm offers four different types of CDs. That’s a good range of choices, however State Farm’s CD rates for most CDs and terms are unfortunately very low.

State Farm Standard CD: Key Features

APY Range	See rates above
Minimum Deposit	$500
Term Range	3–60 months
Compounding Schedule	Daily
Early Withdrawal Penalty	$25, plus: 1% of withdrawn amount or all interest you would have earned over entire term, whichever is more, for CDs of 6 months or less 1% of withdrawn amount or half of the interest you would have earned over entire term, whichever is more, for CDs ranging from 6 to 12 months 3% of withdrawn amount or half of the interest you would have earned over entire term, whichever is more, for CDs over one year
Grace Period for Penalty-Free Withdrawals	10 days

State Farm has a relatively standard set of CDs. It offers jumbo CDs as well that are identical in regards to interest rates and term lengths (aside from offering three additional short-term options, ranging from “0” months to 2 months), although they require a much larger deposit size: $250,000 minimum. It’s not recommended to keep this much with any one bank, however, since funds above that amount aren’t protected by FDIC insurance.

State Farm also imposes some pretty harsh early withdrawal penalties, which are the same across all of its CD types. If you withdraw any money early, you’ll need to take out $500 at a minimum, which serves to increase your penalty amount if you don’t need that much. You’ll pay a two-factor penalty: a $25 base penalty fee, plus a portion of the amount you withdraw or the amount of interest you would have earned (depending on your term length), whichever is more.

State Farm Special CD: Key Features

APY Range	See rates above
Minimum Deposit	$1,000
Term Range	Varies
Compounding Schedule	Daily
Early Withdrawal Penalty	$25, plus: 1% of withdrawn amount or all interest you would have earned over entire term, whichever is more, for CDs of 6 months or less 1% of withdrawn amount or half of the interest you would have earned over entire term, whichever is more, for CDs ranging from 6 to 12 months 3% of withdrawn amount or half of the interest you would have earned over entire term, whichever is more, for CDs over one year
Grace Period for Penalty-Free Withdrawals	10 days

As long as you don’t mind a wonky term length, you actually do have the potential to earn decent rates with State Farm’s Special CDs. The downside is that you’ll need at least twice as much—$1,000 minimum—to open anything other than a Standard CD, including this Special CD. In addition, it still retains the substantial early withdrawal penalty, so it’s not a good choice if you may need to tap into your savings at some point during your term.

State Farm Step-Up CD: Key Features

APY Range	See rates above
Minimum Deposit	$1,000
Term Range	28 months
Compounding Schedule	Daily
Early Withdrawal Penalty	$25, plus: 1% of withdrawn amount or all interest you would have earned over entire term, whichever is more, for CDs of 6 months or less 1% of withdrawn amount or half of the interest you would have earned over entire term, whichever is more, for CDs ranging from 6 to 12 months 3% of withdrawn amount or half of the interest you would have earned over entire term, whichever is more, for CDs over one year
Grace Period for Penalty-Free Withdrawals	10 days

State Farm offers a somewhat-complicated way to earn higher (but still relatively low) rates with its Step-Up CD, which provides automatic rate bumps every seven months across the sole term length offered. Those rate bumps can be exciting to watch, but keep in mind that the blended rate you’ll earn is still much less than what’s offered for the best two-year CDs.

State Farm Trade-Up CD: Key Features

APY Range	See rates above
Minimum Deposit	$1,000
Term Range	30–60 months
Compounding Schedule	Daily
Early Withdrawal Penalty	$25, plus: 1% of withdrawn amount or all interest you would have earned over entire term, whichever is more, for CDs of 6 months or less 1% of withdrawn amount or half of the interest you would have earned over entire term, whichever is more, for CDs ranging from 6 to 12 months 3% of withdrawn amount or half of the interest you would have earned over entire term, whichever is more, for CDs over one year
Grace Period for Penalty-Free Withdrawals	10 days

State Farm’s Trade-Up CD offers a different way to increase your rates: You get to choose when. If the rates on the nearest standard CDs are higher than what you’re currently earning, you get a one-time-only opportunity to call up the bank and request your rate to be changed to the higher amount. This rate change can take up to 10 days to process, and it’s unclear whether State Farm honors your request for the stated rate if it should change during that processing period.

It sounds good in theory, but it’s unclear whether this potential scenario will ever happen. State Farm CD rates are already among some of the lowest in the banking world, and it doesn’t appear that 2023’s high-interest-rate environment is nudging it to increase its rates by much, if at all. If earning higher rates is a priority to you, then you’d be much better off choosing another bank from the start.

About State Farm

State Farm is more well-known as an insurance company than as a bank; it is the largest issuer of private car insurance in the country, after all. It’s also been quietly running a banking division in the background, which it handed off to U.S. Bank to manage in 2020. Today, it offers a full suite of account types, such as checking, savings, CDs, and even IRA CDs. Customers of State Farm Bank do get a few perks beyond regular U.S. Bank customers, such as being able to open CD accounts with a local State Farm agent and receiving preferred tier status with the bank.

However, like most large nationwide banks, U.S. Bank tends to charge a lot of fees and offers little interest in return. The main benefit of choosing a financial institution like U.S. Bank is the ability to walk into a branch; but since you’ll be mostly managing your account online through State Farm, there’s not much of a benefit there. You’d likely be much better served elsewhere with another online bank offering high-yield CDs.

Compare CD Account Rates

For the most part, State Farm CD rates are about as exciting as reading the full text of your insurance policies. If you’re interested in options that can get you to your savings goals faster and with less fuss, consider these CDs available from other banks.

Does State Farm Increase Its CD Rates?

State Farm doesn’t provide a history of any across-the-board CD rate increases. It may increase or decrease its rates for any CD at any time. However, it does offer one type of CD—a Step-Up CD—that offers four rate increases during its 28-month term length.

As of this writing, each rate increase is staggered every seven months. However, since the rates offered on this account are very low to begin with, the blended rate is still much lower than you could get with the top CDs available today.

What Bank Is Associated With State Farm CD Accounts?

State Farm partners with U.S. Bank to offer its deposit account products, including CD accounts. This arrangement works similarly to many popular neobanks and fintech apps, which aren’t actually banks themselves. Instead, they offer a snappy interface and partner with real banks, where your money is actually stored and protected.

Are State Farm CD Accounts FDIC-Insured?

Yes, State Farm offers FDIC insurance on all of its deposit accounts through its partner bank, U.S. Bank. Your money is protected up to a limit of $250,000—a good number to keep in mind should your balance ever grow this large. If it does, it’s wise to split your savings up among different banks to ensure your money is fully protected.

Can Anyone Open a State Farm CD Account?

Only current customers of State Farm can open a CD account. However, since State Farm isn’t actually a bank and only offers banking services through its partner U.S. Bank, you may be eligible to open the same accounts directly through U.S. Bank instead.

Do State Farm CD Accounts Have Fees?

Yes, State Farm does charge a fairly hefty CD early withdrawal penalty if you withdraw your money before the term length ends. If you do this, State Farm requires you to withdraw at least $500 from your CD, potentially increasing your penalty amount. You’ll pay a $25 base fee, plus either a percentage of the amount you withdraw or a percentage of the interest you would have earned, whichever results in a higher total fee.