State Farm Bank CD Review (2026) — What Happened After the 2020 U.S. Bank Sale
Quick take: State Farm Bank no longer offers CDs. In late 2020, State Farm sold its bank's deposit and credit card business to U.S. Bank (NYSE: USB). Legacy State Farm Bank CD customers were transitioned to U.S. Bank accounts at the same terms. If you're searching 'State Farm Bank CD' in 2026, you're effectively looking at U.S. Bank's CD lineup — which is bog-standard big-bank pricing (4.30% on the 1-year), well below online-bank rates.
Current rates (State Farm Bank (now U.S. Bank), as of June 2026)
| Term | APY | Minimum |
|---|---|---|
| 3-month U.S. Bank CD | 3.50% APY | $1,000 |
| 6-month U.S. Bank CD | 3.85% APY | $1,000 |
| 9-month U.S. Bank CD (Special) | 4.20% APY | $1,000 |
| 1-year U.S. Bank CD | 4.30% APY | $1,000 |
| 18-month U.S. Bank CD | 4.10% APY | $1,000 |
| 2-year U.S. Bank CD | 3.95% APY | $1,000 |
| 3-year U.S. Bank CD | 3.80% APY | $1,000 |
| 5-year U.S. Bank CD | 3.65% APY | $1,000 |
Rates verified against State Farm Bank (now U.S. Bank)'s public rate sheet on the publication date and change frequently. Confirm current APYs directly with the bank before opening an account.
What happened to State Farm Bank
State Farm Bank (FDIC cert #34617) was the federally chartered savings bank subsidiary of State Farm Mutual Automobile Insurance Company, launched in 1999 to cross-sell deposit and credit products to State Farm insurance customers. The bank was always small — under $20B assets at peak — and never became material to State Farm's main insurance business.
In November 2019, State Farm announced an agreement to sell its bank's deposit and credit-card business to U.S. Bank. The transaction closed in 2020. State Farm Bank's charter was wound down; deposit customers were transitioned to U.S. Bank accounts at the same terms, and credit-card customers were issued new U.S. Bank-branded cards.
State Farm continues to refer customers to U.S. Bank for banking services, but no longer operates its own bank. If you're searching for State Farm Bank CD rates today, you're really shopping U.S. Bank CDs.
What U.S. Bank CDs look like in 2026
U.S. Bank (FDIC cert #6548) is one of the five largest US banks by assets (~$675 billion). Its CD pricing is classic big-bank: rates well below online-bank competitors, but with branch access and bundled-relationship benefits.
The 1-year U.S. Bank CD at 4.30% loses to BMO Alto (4.75%), BrioDirect (4.85%), and Live Oak (4.60%) by 30-55 bps. The 5-year at 3.65% is one of the weakest in this entire review set — well below not just MYGAs but most online-bank 5-year CDs.
U.S. Bank periodically runs CD specials (the 9-month at 4.20% above is one example) that are more competitive than standard rates. Watch for those if you're committed to U.S. Bank for relationship reasons.
What we like about State Farm Bank (now U.S. Bank) CDs
- U.S. Bank is one of the five largest US banks (~$675B assets)
- Branch access in 26 states for in-person service
- Relationship pricing available if you also have U.S. Bank checking or other products
- FDIC-insured at the U.S. Bank N.A. level
- Periodic CD specials (e.g., 9-month at 4.20%) can be competitive
What we don't
- Standard CD rates are well below online-bank competitors across the curve
- 5-year rate (3.65%) is one of the weakest in this review set — significantly below MYGAs
- State Farm Bank no longer exists — the brand search drives confusion
- Early-withdrawal penalties on longer terms can run up to 730 days interest — brutal
- Branch-bank cost structure makes it hard for U.S. Bank to compete with online-only banks on yield
How State Farm Bank (now U.S. Bank) CDs compare vs peers
If this rate is on your shortlist, you should also be pricing:
| Competitor | Term | APY |
|---|---|---|
| Chase CDs (big bank peer) | 1-year CD | ~4.00% APY |
| Bank of America CDs (big bank peer) | 1-year CD | ~3.75% APY |
| BMO Alto | 1-year CD | ~4.75% APY |
| Live Oak Bank | 1-year CD | ~4.60% APY |
| Top A-rated MYGA carrier | 5-year MYGA at ~5.65% | MUCH higher long-term yield |
Internal benchmarks: Best 5-Year CD Rates 2026 · Best 1-Year CD Rates 2026 · Online vs Brick-and-Mortar CDs.
When a MYGA beats this State Farm Bank (now U.S. Bank) CD
U.S. Bank's 5-year at 3.65% is one of the worst rates in this review set vs MYGAs. Compare $250,000 over 5 years:
- U.S. Bank 5-yr CD at 3.65%: $250,000 grows to $298,940 (taxable annually)
- A-rated 5-yr MYGA at 5.65%: $250,000 grows to $329,251 (tax-deferred)
- Pre-tax delta: $30,311 in favor of the MYGA
That's over 12% of starting principal in extra growth, plus tax deferral. The big-bank brand premium costs you a lot of money on 5-year tenors. If you must use U.S. Bank for relationship reasons, do it for checking or a credit card — not for a 5-year CD.
State Farm Bank (now U.S. Bank) CD FAQ
Want to see if a MYGA beats this CD for your situation?
Free side-by-side: this CD vs. top MYGA rates for your state and amount.
CDs are safe and simple. MYGAs are insurance-company versions of CDs, often paying 50-150 bps more for the same lockup. The math depends on your tax bracket and state guaranty fund coverage.
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Bottom line
State Farm Bank was a small subsidiary that's been gone since 2020. If you're looking at 'State Farm Bank CD' you're really looking at U.S. Bank, whose CD rates are uncompetitive vs online-bank peers and brutally uncompetitive vs MYGAs on 5-year money. For yield-focused buyers, look elsewhere.
About Hans Goldstein: Independent retirement income specialist. CA Life License #4163961. NPN #20602398. Reviews 30+ carriers and tracks bank CD rates weekly. Phone: 213-414-2808. Email: hans@goldsteinco.net.
Disclosure
This review reflects publicly available bank rate sheets and approximate APYs as of the date stated above. CD rates change frequently — sometimes weekly — and the rates above may be stale by the time you read this. Always confirm current rates and terms against the bank's current rate sheet and disclosure documents before opening an account. FDIC insurance covers $250,000 per depositor, per insured bank, per ownership category; deposits above that amount at a single bank are not insured. This article is general information for educational purposes; it is not personalized financial advice, a solicitation, or an offer of any specific product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) and is not a bank, deposit broker, or registered investment adviser. CDs are bank deposit products and are not sold by insurance producers; references to CDs are for comparison context only. MYGAs (multi-year guaranteed annuities) are insurance contracts, subject to surrender charges and state guaranty fund coverage rather than FDIC. Early withdrawal of a CD before the maturity date typically results in a penalty that may exceed interest earned. Always read the actual deposit account agreement and consult a licensed advisor before making material financial decisions.