You’ve surely heard of State Farm, the insurance company, but did you know that you can purchase CDs (certificates of deposit) via US Bank through State Farm?
In late 2020, US Bank purchased State Farm’s deposit account product suite and began offering the CDs themselves.
That said, the Special CDs you purchase from US Bank via State Farm’s portal sometimes come with higher APYs (annual percentage yields) than US Bank’s stand alone CDs purchased from them directly.
To see if these deposit accounts are right for you, continue reading our review below.
State Farm CD Rates via US Bank Alliance
The State Farm alliance with US bank allows consumers to purchase a number of standard CDs and Special CDs through US Bank. These CDs are federally insured by the FDIC. If you already have funds in a deposit account with US Bank and are looking to open another one via the State Farm portal both account balances will count towards your overall $250,000 of FDIC coverage.
Special CD Rates
Special CDs offered through the State Farm and US Bank alliance come with 4 terms to choose from and a minimum deposit requirement of $1,000. See terms and rates below.
| Term | APY |
| 7 months | 4.80% |
| 11 months | 4.95% |
| 15 months | 4.95% |
| 19 months | 4.95% |
How Much Can You Earn with a State Farm CD?
The amount of money you can make with a CD from State Farm and U.S. Bank is going to depend on your deposit size, the CD term you choose and its APY (annual percentage yield). The table below shows potential earnings based on a $100,000 deposit for each of State Farm’s Special CDs.
| CD Term | APY | Earnings |
| 7 months | 4.80% | $2,772.62 |
| 11 months | 4.95% | $4,528.30 |
| 15 months | 4.95% | $6,225.32 |
| 19 months | 4.95% | $7,949.89 |
How Do State Farm’s CD Rates Compare?
Take a look at the table below to see how State Farm’s CD rates compare to competitive CD rates offered by other FDIC-insured institutions.
| Institution | Best CD Rate (APY) |
| Ameriprise Financial | 5.25% |
| Sallie Mae | 5.55% |
| USAA Bank | 5.00% |
| State Farm | 4.95% |
Standard CD Rates
Standard CDs offered through the State Farm portal are much less competitive than the Special CDs. They come with terms ranging from 3 months to 5 years. The minimum deposit requirement for a standard CD is $500. Jumbo CDs are also available with minimum deposit requirements of $250,000 however they currently come with the exact same yield for each term as the standard CDs.
| Term | APY |
| 3 months | 0.05% |
| 6 months | 0.05% |
| 9 months | 0.05% |
| 12 months | 0.05% |
| 18 months | 0.05% |
| 24 months | 0.05% |
| 36 months | 0.10% |
| 48 months | 0.15% |
| 60 months | 0.25% |
To put these low yields into perspective, the current national average for a 12 month CD and a 60 month CD sit at 1.76% and 1.41% APY, respectively, according to FDIC data.
Step Up CD Rates
A Step Up CD offered through the State Farm portal comes with a 28 month term and 4 interest rate increases during this period. Each coming at 7 month intervals. APYs associated with each rate bump are shown below. The minimum deposit requirement is $1,000.
| Interval | APY |
| First 7 months | 0.05% |
| Second 7 months | 0.25% |
| Third 7 months | 0.45% |
| Final 7 months | 0.65% |
The total blended APY for the 28 month duration is 0.35%. To put this in perspective, the national average for a 24 month CD is 1.50% APY.
Trade Up CD Rates
Trade Up CDs offered through the State Farm portal come with two terms to choose from – 30 months and 60 months. During the life of this CD, consumers can lock in a higher rate one time. The minimum deposit requirement for this account is $1,000.
| Term | APY |
| 30 months | 0.10% |
| 60 months | 0.40% |
To activate your one-time rate increase, you’ll need to call 800.890.2233 before the maturity date.
The rate that you’ll switch to is based on the going APY for the closest standard term CD that is equal or less than the remaining time on your original CD.
So for example, if you choose the 30 month CD and would like a rate increase 15 months through the term, you would then get the going APY for a standard 12 month CD.
Crediting Interest
Interest payments on all CDs offered through the State Farm and US Bank alliance come either annually or upon the CD’s maturity, whichever comes first.
Grace Period and Early Withdrawal Fees
US Bank allows for a 10 calendar day grace period upon your CD’s maturity in which you may change terms, withdraw/add funds or close the CD account without incurring a penalty fee.
If you need your funds prior to your CD’s maturity, you will incur an early withdrawal fee. All early withdrawals come with an automatic flat fee of $25 plus the following:
For CDs with terms of 6 months or less the penalty is the greater sum of A or B.
- A = All interest that would have been earned on your funds if held to maturity.
- B = 1% of the amount withdrawn.
For CDs with terms of >6 – 12 months, the penalty is the greater sum of A or B.
- A = 1/2 interest that would have been earned on your funds if held to maturity.
- B = 1% of the amount withdrawn.
For CDs with terms longer than 1 year, the penalty is the greater sum of A or B.
- A = 1/2 interest that would have been earned on your funds if held to maturity.
- B = 3% of the amount withdrawn.
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