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Update on $100 Checking Account Bonus at Flagstar Bank

POSTED ON BY

Flagstar Bank
Flagstar is still offering a $100 gas card for opening a checking account and establishing direct deposit of at least $250/month. It's now being advertised on their home page. Here's the direct link to the promotional page. It requires that you keep the account open for at least 6 months. I last posted on this promo in late January.

Since it looks like you could apply online, I called to see if this promo is available nationwide. According to the CSR, the gas card promotion is only available in states where they have branches (Georgia, Michigan and Indiana). However, she said people in any state could sign up online for the checking accounts. According to the CSR, they do not do a hard credit inquiry (it's just a soft pull).

Flagstar's checking accounts have some nice features such as no minimum balance requirements and free checks.

Also, Flagstar's Express Money Market Account currently has one of the nation's top yield (4.25% APY) with no minimum balance requirements. Since it started in the middle of last year, the yields have remained very competitive (see post).

Flagstar has been hit hard by the mortgage problems. It currently has a 1 out of 5 star rating (lowest) at Bankrate.com. Last month Flagstar announced that it's suspending dividends (see stock analysis notes). The bank is a member FDIC (Certificate # 32541).

Thanks to the reader who mentioned this promo update in the comments.
  Tags: Indiana, Flagstar Bank, Georgia, Michigan, checking account

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Comments
14 comments.
Comment #1 by Anonymous posted on
Anonymous
4.25% APY is very competetive in today's environment.

1
Comment #2 by Anonymous posted on
Anonymous
Countrywide cut their SavingsLink to 4.05 from 4.25. Looks like 4% will be gone in a few more days.

1
Comment #3 by Sofa King Frustrated (anonymous) posted on
Sofa King Frustrated
Yes, the days of 4% will soon be long gone for quite some time, as President Bush confirmed the Fed will cut the Fed Funds rate again this month. Probably a 3/4 of 1% cut. And then they will cut the rate again after that, down to hopefully a bottom of 2%. But since it looks like a recession is here, it is possible the rate will go below 2%.

Sad days indeed.

How long until the interest rates for savings accounts go back to 5%? Will it be years?

1
Comment #4 by PNS2CLT (anonymous) posted on
PNS2CLT
1) Flagstar pulls a hard TransUnion but you may be able to negotiate it into a soft pull.

2) Flagstar offers two different deposit products -- one to people living within their branch footprint, and one to people living elsewhere. You can see the differences by playing with ZIP codes on their website... basically, you'll want a free checking account if you live within their footprint. Only the first box of 200 checks is free.

FWIW, Flagstar's written policy is to beat any other bank's (with a branch in the same county) CD rate by 0.05% so some value in it...

1
Comment #5 by Anonymous posted on
Anonymous
How long until the interest rates for savings accounts go back to 5%? Will it be years?

I don't think it will be too many years once the Feds finally come to grips with reality and admit how bad inflation is gaining steam.

Stagflation anyone?

1
Comment #6 by PNS2CLT (anonymous) posted on
PNS2CLT
Forgot to add, if you live within Flagstar's footprint the best interest rate is 3.25% on their "loyal" savings account ($1,000 min. balance, must have a checking account with one ACH credit/debit per month)... you can't get the rates offered to consumers outside the footprint...

1
Comment #7 by pns2bttcks (anonymous) posted on
pns2bttcks
Dear P*n*s2Cl*t,

I was told by a FlagStar rep that a hard credit pull absolutely would not be done at my request, but two days later my Triple Alert service notified me that they did indeed do a hard pull.

I am so upset, but it is too late for me to do anything now.

My point: Don't believe what the rep at FlagStar says. The bank will do a hard credit pull anyway.

1
Comment #8 by Anonymous posted on
Anonymous
Can anyone, that really knows, explain to me why banks do a hard credit pull or any credit check at all when a person is depositing money in their bank. I could see if a person was requesting a loan or line of credit, but not to deposit money in a CD account???

1
Comment #9 by PNS2CLT (anonymous) posted on
PNS2CLT
I don't have a definite answer, but Flagstar told me that by hitting you with a hard check yields a consumer bond rating (A-B-C-etc.) that they wouldn't otherwise be able to obtain with a soft check. They insist that it doesn't hurt your credit score as much as it would if you were applying for credit... and they claim it may actually help it in the future, since your rating is periodically updated via soft checks and no inquiry is necessary when applying for credit. The don't run a ChexSystem.

The thing is, they hit me with inquires when I opened both my checking and savings (days apart)...

1
Comment #10 by Anonymous posted on
Anonymous
I've been happy with Flagstar's rates, but am concerned about the 1 star rating. What risk is there that the bank will go into bankruptcy?

1
Comment #11 by mcfa (anonymous) posted on
mcfa
For the $100 bonus, can you simulate the direct deposit requirement by transfering via ACH $250 or more each month? Anybody know?

1
Comment #12 by Anonymous posted on
Anonymous
Flagstar express money market now down to 4.01%.

1
Comment #13 by Anonymous posted on
Anonymous
In order to obtain the gas card you must have a qualified PAYROLL deposit of at least 250.00 in a a statement cycle. THis is not the only promotion they have going on. THey also give you 50.00 dollars for refering someone to open the account. They credi this the same day your referral opens the account.

1
Comment #14 by Anonymous posted on
Anonymous
I have been with Flagstar in Georgia for the past year. Their regional office at Ashfor Dunwoody offers the greatest customer service after they transfered the management team from their office on mount vernon rd. I would really recomment Flagstar to anyone. I made over 25k in interest in 2007 just for switching over to them

I love them!

1