Individual Retirement Account (IRA) & Education Savings Account (ESA) Certificates of Deposit

Fixed-Rate Certificates of Deposit Terms and Conditions

(Includes Traditional IRA, Roth IRA and Coverdell ESA CDs)

In addition to the General Rules, your Individual Retirement Account Certificate of Deposit will be subject to the following rules:

1. Payment. The deposit is payable upon a maturity date.
   
   
2. Interest. Interest is accrued and credited to the Certificate of Deposit as set forth in the Individual Retirement Account Certificates of Deposit section under the TRUTH IN SAVINGS DISCLOSURES.
   
   
3. Variable Rate. If the Individual Retirement Account Certificate of Deposit is a variable rate certificate, the Account Disclosures provided at deposit will describe the index rate used to determine the interest paid.
   
   
4. Withdrawal Prior to Maturity. Depositor has contracted to keep the funds on deposit as evidenced by the Deposit Received Date and Maturity Term listed on the Individual Retirement Account Certificate of Time Deposit Application. Acceptance of a request by Depositor for a withdrawal of some or all of the funds prior to the Maturity Date is at the discretion of State Farm Bank. Normal distributions will be allowed without incurring an early withdrawal penalty for customers who have reached age 59 ½. Transfers or Rollovers to another IRA are not considered normal distributions.
   
   
5. Early Withdrawal Penalties. With the exception of IRA distributions as outlined above, if State Farm Bank allows a withdrawal, either partial or total, each time it allows such a withdrawal, depositor may be assessed an early withdrawal penalty set forth in the Certificates of Deposit section under the TRUTH IN SAVINGS DISCLOSURES.
   
   
6. Automatically Renewable Certificates. Individual Retirement Account Fixed-Rate Certificates renew automatically on the Maturity Date. If the deposit is withdrawn during the Grace Period set forth in the Individual Retirement Account Certificate, State Farm Bank will not charge an early withdrawal penalty. Interest paid on the deposit until withdrawal during the Grace Period shall be that Grace Period interest described in the Individual Retirement Account Certificates of Deposit section under the TRUTH IN SAVINGS DISCLOSURES.