State Farm Plans to Launch Internet Banking Services.

State Farm Mutual Automobile Insurance Co.'s bank unit plans to launch a nationwide Internet bank this spring, the company said.

State Farm Financial Services FSB, a thrift, began operations in May 1999, offering deposits and loans in central Illinois and St. Louis, said spokesman Dick Luedke. State Farm, Bloomington, Ill., also made the bank services available through its agency system.

State Farm's Internet offerings were made available to all its employees, agents and those who work for agents and retirees in late January, Luedke said, and will be available to the general public in the spring.

The Internet site offers deposit products such as checking and savings accounts, money-market accounts and certificates of deposits. Loan products will be offered later, Luedke said.

As of Jan. 1, State Farm Bank had about 3,300 deposit accounts and 2,500 consumer loans, Luedke said.

The insurer sought a formal charter from the federal Office of Thrift Supervision to establish the bank after a survey of policyholders found that 68% wanted their insurer to provide banking services as well. The charter was granted in November 1998.