On top of the rate table, there are three tabs. The right one is the disclosure for the CD. At the bottom of this page is a link to the PDF of the full disclosure. Some of the important details from the disclosure include:
- Automatic monthly or annual transfer of CD interest to a Flagstar account. CSR said that mailing a check is also an option.
- At maturity you can elect to withdraw the funds via a wire transfer ($20 fee) or by check
- 10 calendar day grace period at maturity
- Early withdrawal penalty is 180 days of interest for terms from 12 to 29 months. For 30 months and above, the early withdrawal penalty is at least 180 days of interest. It can be more based on what they call the mark to market penalty which seems quite convoluted.
Flagstar has been hit hard by the mortgage problems. However, its financial ratings have recently improved. Bankrate just released ratings based on 6/30/08 data, and Flagstar's rating has improved from 1-star to 2-star (below peer group). BauerFinancial gives Flagstar 3 stars (adequate) based on 6/30/08 data. Flagstar did have some positive news on its second quarter results (see article). As I recommend with any bank, make sure to stay under the FDIC limits. The bank is a member FDIC (FDIC Certificate # 32541).