Here at Peak Personal Finance, we know that online banking is an important part of today’s fast-paced lifestyle. As busy people, we like to be able to check on our accounts, do simple banking tasks, etc. at any time, day or night, without the hassle of having to find a branch and walk in. So today we’re going to look at online banking at State Farm Bank.

State Farm Bank was chartered in 1998 as an extension of State Farm Insurance Company. The bank does not have branches in its insurance offices, though agents are available to help answer product questions. Customer service is provided through the Internet and a call center. State Farm Bank online banking offers all the accounts and services you would expect from any bank direct to your home or office computer through online banking. Because they are almost exclusively an online bank, State Farm has a leg up on many other banks.

Every major type of banking service you’d expect is available from State Farm online banking. Certificates of deposit, savings, money markets, checking, and more are all there. They are, however, limited in some respects and offerings and numerous consumer complaints about unusual and large fees and bad customer service have been spread around the Internet.

State Farm Bank Internet banking does not offer accounts comparable to the online bank units of other insurance companies or other online banks. All accounts are FDIC insured which does create confidence in knowing that all accounts are insured up to $250,000. They also offer the Coverdell Education Savings Account CD, a tax free way to fund your child’s education and the Health Savings Account, a tax free way to offset a high deductible. While these two accounts distinguish them, their other accounts are lacking the high yield rates of their competitors and State Farm Bank seems to have more restrictions and fees than the competition.