Flagstar Bank has come out with a new promotion that's guaranteeing a 4.00% APY for 12 months on its Flagstar Money Market account. It's only for Michigan residents who are not existing Flagstar customers. A checking account with direct deposit is required.
The special doesn't seem to be listed on Flagstar's website. A reader emailed me news of this special, and I just called for additional details. According to the CSR, this is available at all branches in Michigan. The 4% promotion applies to the Flagstar Money Market Account. This account requires a $5,000 minimum balance to avoid a $25 monthly service charge. Any checking account qualifies, including the Free Checking. The direct deposit to the checking account must be at least $250 per month, and it must be started within 2 months. The CSR didn't know how much longer this special would last. He said it just recently began so he expected it to last for at least another week.
Branches are located throughout Michigan including the cities of Detroit, Lansing, Battle Creek, Jackson, Kalamazoo, Grand Rapids, Howell, Sterling Heights, Farmington, Troy, Ann Arbor and Canton. Flagstar also has branches in Indiana and Georgia, but this promotion only applies to Michigan.
Flagstar's Express Money Market Account Update
Flagstar's online Express Money Market Account continues to offer a very competitive yield (currently 3.65% APY) with no minimum balance requirements. It was launched in the summer of 2007 (see post), and it has remained near the top of my money market and savings account list.
Flagstar's Financial Health
Flagstar continues to have problems in this credit crisis. Flagstar's holding company reported a loss of $62 million during the third quarter. Its financial ratings for soundness are a little weak: 3 stars (adequate) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 6/30/08 data. As I recommend with any bank, make sure to stay under the FDIC limits. The bank is a member FDIC (FDIC Certificate # 32541).