State Farm offers savings accounts through a strategic partnership with U.S. Bank. In 2020, State Farm announced that U.S. Bank would be taking over its banking products, including savings accounts and money market accounts.
If you’d like to open a State Farm Standard Savings Account, you can do so online or at a local branch through U.S. Bank. Rates on most savings products are below average and may vary by state and county. You’ll need a $25 minimum deposit to open a State Farm savings account.
Here’s how to save with State Farm and what interest rates you can expect to earn. Account information and annual percentage yields (APYs) are accurate as of May 1, 2024, for the New York ZIP code 10001.
State Farm Credit Union Savings Rates
| Account Name | APY | Minimum Deposit |
|---|---|---|
|
State Farm Standard Savings Account
|
0.01%
|
$25
|
|
State Farm Elite Money Market Savings Account
|
0.01 to 4.25%
|
$100
|
|
State Farm Retirement Money Market Account
|
0.01%
|
$100
|
State Farm Elite Money Market Savings Account Rates by Balance Tier
| Daily balance | APY |
|---|---|
|
Under $10,000
|
0.01%
|
|
$10,000 to $24,999
|
0.01%
|
|
$25,000 to $49,999
|
4.25%
|
|
$50,000 to $99,999
|
4.25%
|
|
$100,000 to $499,999
|
4.25%
|
|
$500,000 and above
|
4.25%
|
The Standard Savings account and the State Farm Retirement Money Market Account account earn the lowest rates at just 0.01% APY. You can, however, earn a higher APY with the State Farm Elite Money Market Savings Account.
With this account, the APY is tiered by balance as shown above. The regular APY range for this account is 0.01 to 4.25% and tiered by balance as shown above. But keep an eye out because U.S. Bank occasionally runs promotions that allow savers with at least $25,000 deposited to earn a limited-time bonus APY.
Interest for State Farm Retirement Money Market and Elite Money Market accounts is compounded daily and credited monthly. If you have a Standard Savings account, interest is credited to your account quarterly.
Overview of State Farm Savings Accounts
As mentioned, State Farm Bank no longer offers savings accounts directly. Instead, it has teamed up with U.S. Bank to issue State Farm savings accounts.
U.S. Bank has more than 2,200 branch locations in 26 states. You can visit a branch near you to open a State Farm savings account or open one online in just a few minutes.
If you’re thinking of applying for one of these savings accounts, you’ll need at least $25 to open a Standard Savings account or $100 to open a money market account.
U.S. Bank charges a $4 monthly maintenance fee for State Farm Standard Savings accounts. You can, however, avoid the fee by meeting one of these requirements:
- Maintaining a $300 minimum daily ledger balance
- Having a $1,000 average monthly collected balance
- Being 17 or younger
For the Elite Money Market Savings account, you’ll pay a $0 monthly maintenance fee for the first 12 months if you're a new customer (after that the monthly fee is $10). You can waive this by enrolling in Smart Rewards with a U.S. Bank Smartly® Checking or maintaining a $10,000 minimum daily ledger balance.
There’s no monthly maintenance fee for the Retirement Money Market account.
How Much Can You Earn?
If you’re earning 0.01% APY with a State Farm savings account, your money probably won’t grow much no matter how much you save. You could, however, earn quite a bit with a money market account if you qualify for the bonus APY.
Use the savings calculator below to estimate how much you could earn, based on your balance and APY, with a State Farm savings account.
State Farm Bank vs. Other Banks
Compared to other basic savings accounts at big national banks, State Farm’s savings account rates are on equal footing. That is to say, you’ll earn well below national average savings rates.
You’re more likely to find higher rates with an online bank instead. These banks offer high-yield savings accounts with far better rates and lower minimum deposit requirements and fees. The bonus APY on State Farm’s money market accounts is competitive, but it requires a steep minimum balance, whereas the best money market accounts offer equally attractive rates with much more accessible balance requirements.
Other State Farm Savings Options
When U.S. Bank took over State Farm’s savings accounts, it took over the State Farm Certificates of Deposit accounts as well. If you’d like to open a certificate of deposit to save for short or long-term goals, you have several options to choose from, including:
- Standard CDs
- CD specials (promotional CDs)
- Step Up CDs
- Trade Up CDs
- Retirement CDs
CDs offer a guaranteed rate of return, making APYs even more important than they are for variable-rate savings accounts. Shop around to compare the best CD rates when choosing.
Bottom Line
If you’re interested in a State Farm savings account, you can now open one through U.S. Bank. Keeping your savings at a brick-and-mortar bank might appeal to you if you prefer branch banking or need to make cash deposits. However, as far as savings rates go, it may be worth your while to look for high-interest savings accounts at a different bank instead.
Find The Best High-Yield Savings Accounts Of 2024
Frequently Asked Questions (FAQs)
Which bank has the best savings account rates?
Online banks, and some credit unions, typically offer the highest savings account rates compared to traditional banks. Another advantage of opening a savings account at an online bank or credit union is that these may charge fewer fees.
How much money do I need to open a savings account?
The minimum deposit you’ll need to open a savings account depends on the bank. At online banks, you may be able to open a savings account with as little as $1 or even $0. Traditional banks and credit unions, on the other hand, may require a minimum deposit of $5 to $100 to open a savings account.
Are savings accounts safe?
Savings accounts are a safe place to keep your money with virtually zero risk of losing it. When banks are insured by the FDIC (or NCUA for credit unions), your deposits are protected up to $250,000. That means in the rare event of an institution’s failure, you won’t lose all of your savings.
