Anyone bank with State Farm? (1 Viewer)

[Michael*K]

In reviewing my monthly bank statement, I was pretty shocked how little in interest my bank's savings account is paying. Most of my investments are tied up in mutual funds, which I keep a close eye on. But I keep a smaller savings account too...money I could access easily in case of an emergency. Since I don't usually touch it, I never really paid much attention to how much of a return I was earning...until now. Anyhow, I checked Bank Rate Monitor to see what bank had the best return on CD's and was surprised to find the company with the best rate was State Farm. I've carried my homeowner's and auto policies through them for years and I never though of them as a financial services option. My curiosity was peaked by the fact that their CD and savings account rates pay five times as much as my current bank does. Has anyone had any experience banking with State Farm? Positive, negative feedback?

 

[Scott Strang]

Is it really a good idea to have an insurance company also handle your banking?

If there's a screw up and you're having trouble with getting it straightened out (especially if it isn't your fault) they could also cause you problems with your insurance policies.

 

[Malcolm R]

I'd look for a local credit union. Their rates are usually substantially higher than banks, usually with better service too.

 

[Philip_G]

I'd look for a local credit union. Their rates are usually substantially higher than banks, usually with better service too.

Meh. Rates yes, serivce, not in my experience. I could go on and on about nightmare CU experiences but it would drag this too far OT.

 

[SteveA]

I've had an account with State Farm bank for a couple years and have nothing to complain about. Their customer service has been excellent. Personally, I feel better about banking with a large, financially-stable company like State Farm rather than with some fly-by-night internet bank that might go out of business at any moment.

 

[MikeAlletto]

Personally, I feel better about banking with a large, financially-stable company like State Farm rather than with some fly-by-night internet bank that might go out of business at any moment.

Large or small makes zero difference as long as they are FDIC insured. There is no risk to the customer.

 

[Al Glasser]

I've been banking with the internet bank "Netbank" for several years now and have absolutely no regrets.

Interst rates high, free bill pay, etc.

 

[Philip_G]

Large or small makes zero difference as long as they are FDIC insured. There is no risk to the customer.

or CU whatever whatever, the one that insures credit unions.

 

[SteveA]

Large or small makes zero difference as long as they are FDIC insured. There is no risk to the customer.

There is a huge risk. Can you afford to be without your money during the MONTHS that it supposedly takes to process an FDIC claim? Personally, I'd rather avoid the whole scenario, if possible.