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Flagstar Bank Review

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We maintain strict editorial integrity in our writing and assessments. This post contains links from our advertisers, and we may receive compensation when you click these links. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone. | Advertiser Disclosure
Flagstar Bank Savings
0.10% APY

Flagstar Bank originally began in Michigan as a mortgage lender, and today has loan offices in all 50 states. While mortgages are its primary business, it has a growing community banking business as well, with nearly 100 branches in Michigan and another eight in southern California.

For customers in Michigan, Flagstar offers an excellent array of deposit accounts. Checking and savings accounts tend to have low or no balance requirements, and interest rates are above industry averages. Rates on their certificates of deposit are especially good.

In addition to those high rates, Flagstar offers some neat features with its accounts. These include no fees on overdraft protection transfers (transfers from savings to checking accounts to protect against accidental overdrafts), and access to the nationwide Allpoint ATM network. For those seeking a bank in the Great Lakes State, Flagstar Bank is a solid choice.

Products Offered

Product Key Details
Savings Account
  • Three account options, with varying interest rates and balance requirements
  • $300 minimum deposit to avoid monthly fee on basic account
  • 12-month high-interest promo available
Certificates of Deposit
  • Wide selection of term lengths and interest rates, with terms as long as ten years
  • Minimum deposit of $500
  • Special high rates on some terms, including 13 months and 25 months
Money Market Account
  • Check-writing ability, up to six per month
  • Tiered interest rates
  • Free Visa debit card
Checking Account
  • Three account options, with two interest-earning accounts
  • Non-interest earning account is free
  • Free Visa debit card

Flagstar Bank Interest Rate Comparison

Flagstar Bank Overview

Flagstar Bank is a relatively young bank, having been in operation for just about thirty years. Yet over that period of time, it has achieved substantial growth, expanding from its original branch in Michigan to lending locations across the country, with  nearly 100 branches in Michigan and eight more in California.

As the fifth-largest mortgage originator in the country, mortgage lending is its primary business. But in addition to making home loans, it also operates a substantial banking business, offering a wide range of deposit accounts, from checking to certificates of deposit.

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Flagstar Bank Account Features

If you do your banking with Flagstar, there are a few things you can expect regardless of your account type. This includes free online and mobile banking, a free debit or ATM card, and free access to all Allpoint ATMs (there are 55,000 in the global network). 

In addition to those basic features, Flagstar offers some interesting perks on its accounts. For instance, you are eligible for a 0.50% rate reduction on personal loans and home equity loans if you make payments automatically from your deposit account. Most checking and savings accounts will also earn you bonus rates on CDs if you have combined deposits of $5,000 or more among all checking, savings and money market accounts.

Compare Flagstar Bank to Other Competitive Offers

Flagstar Bank Simply Savings, SimplyMax Savings and High-Yield Savings Accounts

Key Features Details
Minimum Deposit $1
Access to Your Savings Account Online, mobile and physical branches.
Security FDIC insurance up to the maximum amount allowed by law. 
Fees
  • Simply Savings: $3 monthly fee, waivable with $300 average daily balance or with Flagstar personal checking account
  • SimplyMax: $25 monthly fee, waivable with $25,000 average daily balance or with Flagstar personal checking account
  • High-Yield Savings: $35 monthly fee, waivable with $50,000 average daily balance or with Flagstar personal checking account
Current Terms and Rates
  • Simply Savings: 0.10%
  • SimplyMax
    • Account balances up to $4,999.99: 0.05% APY
    • Account balances of $5,000 - $24,999.99: 0.10% APY
    • Account balances of $25,000 - $49,999.99: 0.15% APY
    • Account balances of $50,000 - $99,999.99: 0.15% APY
    • Account balances of $100,000 - $999,999.99: 0.15% APY
    • Account balances of $1,000,000 - $999,999,999.99: 0.15% APY
  • High-Yield Savings
    • Account balances up to $49,999.99: 0.05% APY
    • Account balances of $50,000 - $99,999.99: 0.70% APY
    • Account balances of $100,000 - $249,999.99: 0.90% APY
    • Account balances of $250,000 - $499,999.99: 1.11% APY
    • Account balances of $500,000 - $999,999: 1.20% APY
    • Account balances of $1,000,000 and over: 1.40% APY

Flagstar has a few different savings account options. The basic account, Simply Savings, has a low minimum balance requirement ($300) and fairly low interest rates. There is currently an introductory special, with an interest rate of 1.3% for the first 12 months you have your account.

The other two accounts have higher rates for higher balances. Although they also have higher balance requirements, you also have the option with all three accounts to waive those requirements (and monthly fees) by opening a checking account. Given that there is no balance requirement for a basic Flagstar checking account, this is a good deal.

That being said, none of these accounts offers particularly good rates for balances below $50,000. If you do have that amount, you can earn over 1% on your deposits. 

However, in all cases, your best bet for earning interest at Flagstar will be a certificate of deposit — see below to learn more about those.

Flagstar Bank Certificates of Deposit

Key Features Details
Minimum Deposit $500
Access to Your CD Account Online, mobile and physical branches.
Security FDIC insurance up to the maximum amount allowed by law. 
Fees No monthly fees. Penalties for withdrawals before the end of your term.
Current Terms and Rates: Regular CDs
  • 30-89 Day: 0.10% APY
  • 90-179 Day: 0.10% APY
  • 180-364 Day: 0.15% APY
  • 12-17 Month: 0.40% APY
  • 24-29 Month: 0.55% APY
  • 36-47 Month: 0.55% APY
  • 48-59 Month: 0.60% APY
  • 60-71 Month: 0.70% APY
  • 72-83 Month: 0.70% APY
  • 84-95 Month: 0.70% APY
  • 96-107 Month: 0.70% APY
  • 108-120 Month: 0.70% APY
  • 121-144 Month: 0.70% APY

With a certificate of deposit at Flagstar Bank, you can earn higher interest rates by setting aside your money for a fixed period of time. Flagstar offers a wider range of terms than most banks, with CDs as short as one month and as long as ten years. 

The minimum deposit for a CD at Flagstar is $500. Your interest rate is fixed for your term, which means the bank cannot lower your rates. On the other hand, if rates go up, you will be stuck with your initial rate. 

The best rates tend to be on the longest CDs. Keep in mind that there are penalties for early withdrawal, so don’t open a CD if you might need to access your money before the end of your term.

Flagstar Bank SimplyMoney Market Account

Key Features Details
Minimum Deposit $1
Access to Your Money Market Account Online, mobile and physical branches.
Security FDIC insurance up to the maximum amount allowed by law. 
Fees $10 monthly fee, waivable with a linked checking account or with $5,000 minimum average daily balance.
Current Terms and Rates
  • Account balances up to $4,999: 0.05% APY
  • Account balances of $5,000 - $9,999: 0.10% APY
  • Account balances of $10,000 and over: 0.10% APY

Flagstar Bank offers one other type of savings deposit account — a money market account. This account offers similar rates to Flagstar’s SimplyMax Savings account, but has a lower minimum balance requirement. The balance required to avoid a monthly fee with this account is $5,000.

You can also avoid the monthly fee by opening a checking account. Like a checking account, the money market account does come with some check writing ability. You can make up to six check or debit transactions per statement cycle. Transactions beyond that limit will cost a $10 fee.

 

Flagstar Bank SimplyChecking Account

Key Features Details
Minimum Deposit $50
Access to Your Checking Account Online, mobile and physical branches.
Security FDIC insurance up to the maximum amount allowed by law. 
Fees No monthly fee

Checking accounts at different banks tend to be pretty similar, but Flagstar offers a few features on its basic checking account that make it stand out. For starters, there’s no monthly fee or minimum balance requirement, so once you open your account — the minimum initial deposit is just $50 — you don’t need to worry about your balance (unless it is approaching zero).

Accessing your money is also a breeze with Flagstar. It is a part of the Allpoint ATM network, which has 55,000 ATMs around the world, including ATMs at many CVS and Walgreens pharmacies. For Flagstar customers, withdrawals at these ATMs are free.

Perhaps the most notable feature offered on the account, however, is Flagstar’s overdraft protection policy. While there is a $36 fee for overdrafts — that is, transactions that draw your account to less than zero dollars — Flagstar does not charge you if the offending transaction is for less than $5. So, if you accidentally buy a coffee before your paycheck hits your account, you won’t face the fee for making that mistake. 

What’s more, Flagstar offers overdraft protection transfers from linked Flagstar Bank deposit accounts, at no cost. They will transfer an amount to cover your overdraft from, for example, your savings account, without charging you anything. Most banks that offer this service — and many don’t — charge a fee of at least $10 for each transfer.

Flagstar Bank SimplyPlus and SimplyMax Checking Accounts

Key Features Details
Minimum Deposit $50
Access to Your Checking Account Online, mobile and physical branches.
Security FDIC insurance up to the maximum amount allowed by law. 
Fees
  • SimplyPlus: $10 monthly fee, waivable with $1,000 minimum balance.
  • SimplyMax: $25 monthly fee, waivable with $5,000 minimum balance.
Current Terms and Rates
  • SimplyPlus
    • Account balances up to $9,999: 0.03% APY
    • Account balances of $10,000 and over: 0.05% APY
  • SimplyMax
    • Account balances up to $4,999.99: 0.05% APY
    • Account balances of $5,000 - $24,999: 0.10% APY
    • Account balances of $25,000 and over: 0.15% APY

If you plan on maintaining of at least $1,000 in your checking account, one of Flagstar’s interest checking accounts may be worth consideration. Compared with many other interest checking accounts, Flagstar’s accounts have relatively low balance requirements, while offering some terrific features.

There are two interest checking account options: SimplyPlus and SimplyMax. SimplyPlus has the lower minimum balance requirement, with an average daily balance of at least $1,000 required to avoid the $10 monthly fee. The balance requirement for SimplyMax is $5,000, and the fee is $25.

Both accounts pay interest, with interest rates increasing for higher deposits. SimplyMax has higher rates, though both accounts offer rates that are higher than average for an interest checking account.

In addition to Flagstar’s excellent overdraft protection policies (see previous section), these accounts come with some neat features for ATM use. As with all Flagstar accounts, you will have access to the Allpoint ATM network with your ATM or debit card. But you will also be able to use other ATMs. 

SimplyMax accounts pay no Flagstar fees on other ATMs, and can have up to $20 in ATM owner fees rebated. SimplyPlus accounts get their first two $2.50 Flagstar ATM fees waived each statement cycle, but do not get any rebates on owner fees.

Where Can I Find Flagstar Bank?

Flagstar Bank has 99 branches in Michigan and eight in California. The eight California branches are in southern California, and are part of Desert Community Bank, which was acquired by Flagstar. Flagstar Bank customers have access to banking services at these locations.

What Can You Do Online With Flagstar Bank?

Through Flagstar’s website and mobile app you can review account balances, transfer money between accounts, pay bills, and receive alerts about account activity. You can also deposit checks with the mobile app. The app receives fairly low rankings on the Google and Apple app stores, with 2 and 2.7 stars respectively.

How Do I Access My Money?

Flagstar is part of the Allpoint ATM network, which means there are surcharge-free ATMs almost everywhere that Flagstar customers can use. Most accounts come with a debit or ATM card so that you can withdraw money, although the number of withdrawals allowed per month is limited for savings and money market accounts.

How Can I Save More Money With Flagstar Bank?

If you are looking to grow your savings, Flagstar Bank’s certificates of deposit offer fairly good interest rates. The CD specials have rates above 2%, with terms as short as 13 months (though these are subject to change). At that rate, for every $1,000 in savings, you would add at least $20 each year in interest. 

What’s the Process for Opening an Account With Flagstar Bank?

You can apply for an account with Flagstar online. To complete the process you will need your social security number, a photo ID such as a driver’s license or passport, and some kind of funding source. This could be an account number and routing number for another bank account, or a check. If you use a check you will either need to mail it in, or bring it to a Flagstar branch.

What’s the Catch?

As mentioned above, Flagstar only has branches in Michigan and a small part of Southern California. If you are not in one of these areas, you can still open an account, but you will not have the convenience of a nearby branch office. However, you may still have a surcharge-free ATM in your neighborhood, as Flagstar is a part of a national ATM network.

Bottom Line

Though Flagstar Bank is primarily a mortgage lender, with loan offices in all 50 states, it also has a growing retail banking business. With 99 branches in Michigan and eight in Southern California, it is primarily a Michigan bank. Despite that relatively small footprint, Flagstar offers excellent features on its deposit accounts, such as free overdraft protection transfers, and automatic enrollment in the Allpoint ATM network. It also has great rates on its certificates of deposits.

Save more with these rates that beat the National Average
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