State Farm Savings Account Interest Rates: July 2024

State Farm Savings Account Rates

If you’re a State Farm customer, managing your bank accounts and insurance policies in one place can be appealing.

State Farm used to offer its own credit cards and bank accounts. But in 2020, State Farm and U.S. Bank announced a strategic alliance, and U.S. Bank took over State Farm’s existing deposit and credit card accounts. Through their agreement, customers could open U.S. Bank accounts through State Farm insurance agents or State Farm’s website.

But take note: State Farm savings account interest rates tend to be lower than the national average, and U.S. Bank charges monthly account fees.

State Farm Savings Accounts: Key Features

Through State Farm’s website and agents, you can get information about U.S. Bank’s account options, including savings accounts.

Although some banks may have several different savings accounts serving various customer groups, U.S. Bank has just one savings option: the Standard Savings account.

The Standard Savings account requires a minimum deposit of at least $25, and there is a $4 monthly fee. However, you can qualify for a monthly fee waiver if you meet one of the following criteria:

• You maintain a daily balance of $300 or more.
• You have an average monthly collected balance of $1,000 or more (average monthly collected balance is calculated by adding the principal balance of each calendar day and dividing by the number of days in the statement period).
• You are, or a joint account holder is, 17 or younger.
• You have a U.S. Bank checking account and enroll in the Smart Rewards program and meet the requirements for the Primary tier (your combined U.S. Bank account balances total at least $20,000).

Although the State Farm/U.S. Bank savings account interest rates are quite low, the account does earn some interest. Interest is compounded daily, and is credited to your account quarterly.

Pros and Cons of State Farm Savings Accounts

Pros Explained

• Low minimum deposit: Rather than needing hundreds of dollars to open an account, you can open a State Farm savings account through U.S. Bank with as little as $25. 
• Large ATM network: You can access your account through MoneyPass, an ATM network with approximately 40,000 locations nationwide. MoneyPass ATMs are surcharge-free, so you won't pay an added fee for taking out money.
• Strong customer satisfaction rankings: State Farm partnered with U.S. Bank to offer savings accounts to its customers. U.S. Bank has a strong reputation, and it was ranked number one in J.D. Power’s 2024 U.S. Retail Banking Satisfaction Study.

Cons Explained

• Low APY: The annual percentage yield (APY) on the savings account is much lower than the national average for all savings accounts. If your goal is growing your money, you're better off depositing it in a high-yield savings account from another bank rather than dealing with the anemic APY you'd earn with U.S. Bank. 
• Branches only available in some states: Although customers can get in-person assistance through U.S. Bank branches, U.S. Bank only operates branches in 25 states.
• Charges monthly fees: The standard savings account has a $4 monthly maintenance fee. It's possible to get that fee waived by maintaining a daily balance of at least $300 or a $1,000 average monthly collected balance. However, there are other banks that never charge any fees, so a free savings account may be a better option if you typically have a relatively low balance and won't qualify for a fee waiver.

About State Farm: Other Savings Options

Besides its insurance products, you can also open savings and investment accounts through State Farm. Certain banking products, such as the State Farm money market account and certificate of deposit (CD) accounts, are issued through its agreement with U.S. Bank.

Some of the CDs and money market accounts offer much higher-than-average annual percentage yields (APYs), so they could be a good option to build your savings.

State Farm does manage its own investment products, including 529 education savings plans and individual retirement accounts (IRAs).

Alternatives to State Farm Savings Accounts

State Farm allows customers to open a U.S. Bank savings account with a small minimum deposit. But, as mentioned, State Farm savings account interest rates are quite low. To maximize your savings, consider these other options instead.

High-Yield Savings Accounts

Savings account rates vary quite a bit from bank to bank (and account to account), but there’s no reason to settle for a low rate. The best high-yield savings accounts often have rates above 5%, and many of them have no minimum balance and no monthly fee.

Certificates of Deposit (CDs)

Savings accounts and cash management accounts have variable rates. If you're looking to lock in your rate so you're guaranteed a good APY for the long-term, a CD may be a better choice. CDs typically have fixed APYs for their terms, but the tradeoff is that you cannot touch the money in the CD until the term ends. However, that drawback may be worth it to take advantage of the high APY available on some CDs.

Money Market Accounts (MMAs)

Money market accounts are a bit like a savings account combined with a checking account. They come with the ability to write checks, and the best money market accounts have fairly high rates. Like those other account types, MMAs may have minimum deposit requirements, withdrawal limits, and monthly fees (and ways to have them waived).

Compare Savings Account Rates

Although some of State Farm/U.S. Bank’s accounts have competitive rates, the basic savings account isn’t very attractive. Browse some accounts with higher APYs below to build your savings.

Your Guide to Savings Accounts

• What Is a Savings Account and How Does It Work?
• What Is a High-Yield Savings Account?
• How to Open a High-Yield Savings Account
• How to Close a Savings Account
• Besides a Savings Account, Where Is the Safest Place to Keep My Money?
• How Many Savings Accounts Should I Have?
• How Savings Account Interest Rates Are Determined
• How Interest Works on Savings Accounts
• How Is a Savings Account Taxed?
• Money Market Fund vs. MMA vs. Savings Account: What’s the Difference?
• Certificates of Deposit (CDs) vs. Savings Accounts: Which Is Better for You?
• 4 Savings Accounts for Investors
• Best High-Yield Savings Accounts
• Best Free Savings Accounts
• Best Savings Accounts for Kids and Teens