State Farm Bank
When you hear about State Farm, chances are that the first thing that comes to mind is insurance.
There must be at least one account holder that is age 18 or older. Minors may be account holders, but you must open an account with a State Farm agent or by phone.
It also has handy features like mobile check deposit and a mobile banking app. You can also get account alerts by text or email. However, there are still plenty of online banks that offer interest-bearing checking accounts with no or low minimum balance requirements.
You may as well be earning interest on your money with an online bank if you can. There can be multiple account holders listed, but at least one of them must be 18 years or older. If the account will have a minor listed, it must be opened over the phone or with a State Farm agent. Their account minimums are much higher in order to earn interest.
Even then, the amount of interest earned with State Farm is significantly lower than other banks. We suggest checking out other options besides State Farm if you want to earn interest on your checking account. That said, there are other online savings accounts with much higher interest rates available. However, if a minor will be an account holder, you must open the account by phone or by working with a State Farm agent. An HSA can be a good way to get tax benefits and earn a little interest at the same time.
There is no minimum balance fee associated with this HSA account, and after opening, you can make deposits at any time. There is no option to apply online. By federal law, you can only use an HSA in combination with a high-deductible health insurance plan. While it is a good idea to have a savings account, you can earn more interest on your savings by using a different institution. Savings interest rates with State Farm are low, especially when compared to online savings accounts.
Like other savings accounts, there is a limit of six transfers from your account each month, including automatic transfer, bill pay, etc. If you go beyond six transfers, State Farm has the right refuse your transaction or even shut down your account. There is also a requirement that you must provide written notice at least seven days before any withdrawal or transfer from the account.
You can apply for an account online. One account owner must be over age If a minor will be an account owner, the account must be opened over the phone or via a State Farm agent. However, there are still higher money market rates available at other banks. However, if your main concern is getting the most interest for your money, we recommend finding another bank to house your funds.
State Farm is consistently outperformed by other banks that offer higher rates and similar if not better terms. The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear.
MagnifyMoney does not include all financial institutions or all products offered available in the marketplace. Kayla Sloan is a writer at MagnifyMoney. You can email Kayla here. Robinhood burst onto the investing scene a few years ago, captivating young stock traders and some older ones with a slick mobile app and free stock trades. That splash got investors to pay attention, and Robinhood has continued to build out its offerings from there, providing free trades for exchange-traded funds ETFs , options and, most surprisingly, cryptocurrency.
Who should consider Robinhood Robinhood is great for beginning and young investors because of its slick and familiar mobile interface. Beginners also will really like the commission-free trading. Those looking to get into cryptocurrency also have something to work with here. But if you need extensive research or customer support a group that may include many new investors , Robinhood may not be for you.
It seems like there must be a catch if a broker is offering free trades, but Robinhood is the real deal. In October , the broker reported that it had tripled its accounts since to more than 6 million, putting it ahead of E-Trade, one of the most successful online brokerages.
Finally, while you may need to type in your bank password to initially transfer money, Robinhood does not store those credentials. But for those who need more research, more investor education or a firmer hand at customer support, Charles Schwab is a fine option. You can email James here. Dori Zinn is a personal finance journalist who enjoys helping people learn how to manage their money.
Wealthfront is one of the leading robo-advisors helping people invest their money. Who should consider Wealthfront? Some companies have higher fees because they pay a staff of financial advisors. But with robo-advisors, more of your money can go towards your investments.
Since Wealthfront offers low-cost ETFs, your portfolio is instantly diversified. Not putting all your money into one type of asset or company helps to lower your investment risk. The goal is to save over a long period, and diversification is essential to meeting that goal. Various accounts and planning: Wherever you are in your investment goals, Wealthfront has a slew of different options from which to choose.
You also have an opportunity to build a financial plan. While the desktop site is functional enough, you can check in on the app for Apple or Android devices. You can easily track investments and set goals all through your phone.
This is a great way to watch all your accounts in one place to see how your investments are performing across the board. Drawbacks of Wealthfront No human advisors: This is nice for some, but not for everyone. For novice investors, having a human to talk to you about your options can be a significant factor in what type of platform you choose. Fractional shares can help lower the amount of your uninvested cash, optimizing as much money as possible to can to give you the most return.
These are index funds that are widely considered low-risk, even for the most conservative investors. But what if a company like Wealthfront goes bankrupt? Does your money go away with them? While their service is focused on providing a user-friendly banking solution, in terms of actual finances, it may not be the best option for those looking to save for life milestones.
It is important to note that not all online banks offer this rebate service as part of opening an account. These limitations include but are not limited to the following exclusions:. While State Farm has spent a significant amount of time and money on their online banking service, they have made it clear that they are still first and foremost an insurance provider. That aspect of the business remains the priority above all other State Farm branches of business.
Despite being an insurance provider, State Farm has created a well-rounded banking platform for their clients.
State Farm users can not manage their finances money and investments entirely online without having to meet with someone in a branch.
Borrowing from State Farm for certain things is also an available service. Those that use the State Farm online banking platform can expect the following from their service:. For more information on how we rank companies, click here. We reserve the right to approve or deny any review posted to this site in accordance with our Review Guidelines. Best Company never suppresses user reviews—unless they are being investigated for authenticity, or if they violate our review guidelines.
We encourage anyone who suspects a user review to be fraudulent or intentionally inaccurate to please notify us here. Your trust is our top priority, so we check all reviews for accuracy and relevance. Additionally, we do not allow companies to alter or remove reviews. Claim this Profile BestCompany. Are you a representative of this company? The Good Services and features Savings account Financial management Services and Features While State Farm is known for providing a number of insurance services, they also have an online banking solution.
While there are slight differences between each checking account, each account comes with all of the following features and benefits: Features and benefits of a State Farm savings account include: The Bad Rates are not competitive Restrictions Insurance primarily Rates are not Competitive State Farm bank does not necessarily provide the most competitive rates.
These limitations include but are not limited to the following exclusions: ATM Fee rebate will not be provided if an account is closed prior to the end of the statement cycle Restrictions apply to international ATM fees incurred while traveling outside of the U.