Flagstar has a wide range of certificate of deposit (CD) account term lengths, spanning from 30 days to 120 months (10 years). Though the annual percentage yields (APYs) on its CDs aren’t that impressive compared to the best CD rates out there, Flagstar has returns of 0.40% for CD terms nine years and longer.
Whether your objective is earning some interest in the short term or building up your savings over many years, Flagstar's selling point is its vast array of options. It has more than a dozen different CD terms, at a steadily increasing variety of yields. The low $500 minimum on all CD accounts will be attractive to investors who may not have lots of cash at the ready to park in a CD for a long period of time.
Flagstar recommends an in-person consultation with one of its bankers, so as to pair you with a CD that will best fit your financial goals.
To calculate how much interest you could earn with a CD, try using SmartAsset's CD calculator.
|CD Term||Minimum Deposit||APY|
|13 Month Special||$500||4.50%||Compare CD Rates|
|30-89 Day||$500||1.49%||Compare CD Rates|
|90-179 Day||$500||4.18%||Compare CD Rates|
|180-364 Day||$500||4.25%||Compare CD Rates|
|12-17 Month||$500||4.00%||Compare CD Rates|
|18-23 Month||$500||3.74%||Compare CD Rates|
|24-29 Month||$500||2.75%||Compare CD Rates|
|30-35 Month||$500||2.50%||Compare CD Rates|
|36-47 Month||$500||2.25%||Compare CD Rates|
|48-59 Month||$500||2.25%||Compare CD Rates|
|60-71 Month||$500||2.25%||Compare CD Rates|
|72-83 Month||$500||2.25%||Compare CD Rates|
|84-95 Month||$500||2.00%||Compare CD Rates|
|96-107 Month||$500||2.00%||Compare CD Rates|
|108-120 Month||$500||2.00%||Compare CD Rates|
30-89 Day CD Interest Rate Comparison
Overview of Flagstar CDs
Flagstar Bank, which has its headquarters in Troy, Michigan, is a community bank. It has more than 150 brick-and-mortar locations throughout Michigan, Indiana and Georgia. Flagstar was chartered in 1987 as a federal savings bank, and today, it boasts assets of $14 billion. Because Flagstar only operates in three states, it’s best suited for residents of Michigan, Indiana and Georgia. The bank recommends in-person consultations for those looking to open a CD account.
Flagstar's CD term options range from 30 days to 120 months (10 years). If you're looking to park your cash on a longer-term basis you'll reap the most rewards: Flagstar has returns of 0.40% for CD terms nine years and longer.
The variety of options is Flagstar's true advantage when it comes to CDs. It has more than a dozen different CD terms, at a steadily increasing variety of yields. And compared to other banks out there that require $1,000 minimums for CDs, Flagstar CDs have a lower bar to clear: a $500 minimum.
How Much You Earn With Flagstar CDs Over Time
If you’re not saving toward education—in which case you’d be opening a Coverdell Savings Account—you’ll likely want to open a CD account, which requires a minimum deposit of $500. This is a relatively low minimum, as many banks require at least $1,000 to open a CD account.
In order to get the most out of a Flagstar CD rate, be sure to seek out longer-term accounts. The longer your account term, the bigger your payoff. However, the caveat here is that you’ll need to wait for the long-term account to mature fully.
Additionally, Flagstar will compound your interest on a monthly basis. Compounding means growth of your interest on a faster and more efficient scale by getting larger every month. However, there are some banks of comparable size that will compound on your deposits daily. As you can imagine, the more often a compounding is given, the more money you earn in the future, so do take this deal where you can find it.
|Initial Deposit||6-Month CD||60-Month CD|
How Flagstar CD Rates Compare to Other Banks’
Flagstar’s rates are not particularly impressive when compared to many nationwide banks, but this is offset by the fact that its operations are very much local. In fact, there are no Flagstar branches outside of Michigan, Indiana and Georgia. All this considered, here’s how Flagstar measures up to Ally and Marcus by Goldman Sachs, two online banks, and Chase, a national bank with unusually low rates.
|CD Account||Flagstar Bank||Ally Bank||Marcus by Goldman Sachs||Chase|
Compare Flagstar Bank to Other Competitive Offers
Should You get a Flagstar CD Account?
If you qualify for a Flagstar CD account, and more importantly if you live in one of the three states that hosts Flagstar brick-and-mortar stores, opening a CD account may be a great financial decision.
If you're looking for some guidance along the way, Flagstar excels at customer service, offering around-the-clock phone operators and email support, ensuring your needs will be met in a timely fashion. Not to be overlooked, the Flagstar Coverdell Savings Certificates enable you to save for your education, unencumbered by taxes. If you’re living in Michigan, Indiana or Georgia and are looking for the options you need for local banking that can amount to substantial savings down the line, consider an account at Flagstar.