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State Farm Savings Account Interest Rates: October 2024

Learn more about State Farm’s savings account and the rates it offers

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Updated October 01, 2024
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If you’re a State Farm customer, managing your bank accounts and insurance policies in one place can be appealing.

But take note: State Farm savings account interest rates of 0.01% are much lower than the national average and many of the best savings accounts, and U.S. Bank charges monthly account fees.

State Farm's savings account rates may vary by location, and the rates listed below may not be available in all regions. The APYs listed below use Anderson County, Texas.

State Farm's Savings Account Rates
Account Name Balance for Highest APY APY Range Interest Rate Range Monthly Fee
Standard Savings $25 0.01% 0.01% $4

Compare State Farm 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.

State Farm Savings Accounts: Key Features

State Farm/U.S. Bank Standard Savings Account Key Features
APY Range 0.01%
Minimum Balance to Earn Highest APY $25
Minimum Deposit $25
Withdrawal Limit N/A
Monthly Service Fee $4

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.

You can use Investor.gov’s compound interest calculator to find out how your money would grow over time at different APYs.

Pros and Cons of State Farm Savings Accounts

Pros

  • Low minimum deposit

  • Large ATM network

  • Strong customer satisfaction rankings

Cons

  • Low APY

  • Branches only available in some states

  • Charges monthly fees

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

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.

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).

Frequently Asked Questions (FAQs)

What Types of Savings Accounts Does State Farm Offer?

Through its alliance with U.S. Bank, State Farm offers a Standard Savings account with a minimum deposit of $25. If you’re looking for a higher APY, you can also open a CD or money market account.

Can You Wire Money From a State Farm Savings Account?

If you open a savings account through State Farm’s partner, U.S. Bank, you can quickly and easily wire transfer money from your savings account online or through the U.S. Bank mobile app.

Does State Farm Offer Health Savings Accounts?

State Farm previously offered health savings accounts (HSAs) to its customers. But in 2020, its HSAs were acquired by HSA Bank, so HSAs are no longer available through the insurer. See the best HSA providers here to find a great place to save for medical bills.

How Do You Close a State Farm Savings Account?

To close your account, you must contact U.S. Bank—the financial institution that took over State Farm’s savings accounts. You can close the savings account by visiting a U.S. Bank branch, submitting a written request, or calling customer support at (800) 872-2657.

Your Guide to Savings Accounts

Article Sources
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  3. U.S. Bank. "Save for the Future." 

  4. U.S. Bank. "Standard Savings Account."

  5. J.D. Power. “2024 U.S. Retail Banking Satisfaction Study.”

  6. FDIC. "National Rates and Rate Caps."

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