Pros / You can get a home equity loan or an auto loan through State Farm Bank.
Cons / This online bank doesn’t offer any CDs with terms of less than 12 months.
Verdict / State Farm Bank offers a wide range of banking services, including loans and interest-earning checking accounts, but its rates are lower than many other banks we reviewed.
State Farm Bank is an online-only bank offered by the well-known insurance company. It offers savings accounts, checking accounts, IRAs, mortgages, home equity loans and auto loans. First Internet Bank of Indiana and Nationwide Bank are the only other banks to offer all of these products.You can manage your accounts by logging into its website or downloading the State Farm app; it’s a true online-only bank so there are no physical banking branches.
To open a basic checking account, you’ll need an initial deposit of $25. This account includes ATM reimbursement but does not earn any interest. If you want to sign up for an interest-earning checking account, you’ll need to make an initial deposit of $100. The interest rate for this account is toward the lower end of the online banks we reviewed.
State Farm’s savings account offers one of the lowest interest rates in our review. It requires an initial deposit of $100 and if you stay signed up for direct deposit you won’t be charged a minimum balance fee. State Farm Bank doesn’t offer any CDs with terms of less than 12 months, but its long-term CDs have rates that are comparable with the best online banks.
As long as your savings or checking account has a direct deposit linked to it you’ll be eligible to have ATM charges of up to $10 reimbursed. State Farm Bank is a partner with the NYCE, Visa and Plus ATM networks, which allows accountholders to use them surcharge free.
In addition to checking and savings accounts, you can also sign up for a Traditional or Roth IRA. You can also get an auto loan, mortgage or home equity loan.
Since there are no physical branches, customer support is an even more important consideration. If you need assistance with your account, you can contact State Farm between 6 a.m. to 11 p.m. Central Time Mondays through Fridays. On weekends and holidays you can speak to support between 8 a.m. to 8 p.m. You can also email customer support with questions.
State Farm Bank offers a full range of banking services, including checking and savings accounts, mortgages and auto loans. Its interest-earning accounts have rates that are lower than many of the other banks we reviewed.