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$100 Checking Account/Direct Deposit Bonus at Flagstar Bank

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Flagstar Bank
Flagstar is still offering a $100 cash bonus for opening a new checking account and establishing direct deposit of at least $250/month. Here's the link to the promo page. It's advertised on their home page as of 7/12/2009. Some of the important details in the small print include:
  • New checking account customers only
  • Minimum opening deposit of $50
  • Direct deposit of income of at least $250 per month
  • Direct deposit must be established within first 60 days of account opening
  • $100 will be deposited into your account within 30 days after first direct deposit
  • Account must remain open and active for a minimum of 6 months
  • Bonus will be reported in your 1099
It appears this may be available nationwide. If you select one of the "Apply Now" buttons in the promo page, the following message will appear if your zip code is outside their market area:
We're sorry - these checking products are not offered in your market area.

You may still take advantage of our $100 offer. Please visit our checking page to select the checking product best for you. Just indicate promotion code "M7" at the start of you application or call us at (800) 642-0039 for assistance.

Flagstar's checking account page does list two competitive checking accounts, and both have online applications which appear to allow people from outside their market area to apply. The Index Checking is a nice checking account with no minimum balance requirements, free checks for life, and a decent interest rate for a checking account (0.50% for all balances as of 7/12/09). Note, readers have reported a hard credit inquiry when applying for new Flagstar checking or savings accounts in previous years.

Update 7/13/09: A reader mentioned receiving a promo code of M6 rather than M7. The promo code could vary by zip code.

Flagstar has been offering an internet money market account since July 2007 (see post). The rates have remained competitive. As of 7/12/09, the APY is 1.90%. It has no minimum balance requirements and offers free checks. The main downside is a slow ACH transfer service (Readers have reported you have to submit transfer requests on Monday or it'll drag on over the weekend with at least 4 days of lost interest). Another downside with their ACH service is a limit on the amount you can transfer ($5K/day and $25/month).

Branches are located in Michigan, Indiana and Georgia. The bank is a member FDIC (FDIC Certificate # 32541).

Credit for this find goes to SD member vtecb20coupe who posted it on this SD thread.

  Tags: Indiana, Flagstar Bank, Georgia, Michigan, checking account

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Comments
7 Comments.
Comment #1 by Anonymous posted on
Anonymous
Can you get the promo bonus for opening the checking account if you already have the money market checking account with Flagstar?

1
Comment #2 by Anonymous posted on
Anonymous
I started the application process and on the first page a promo code of M6 is generated, not M7 as you indicate in the post. I did not continue the application pending your comment/clarification. Thanks.

1
Comment #3 by Banking Guy (anonymous) posted on
Banking Guy
I'm still getting M7. It's possible that the codes could vary by zip code.

1
Comment #4 by xninjagrrl (anonymous) posted on
xninjagrrl
I wonder if an ACH transfer from another bank would qualify as a direct deposit. Anyone know how Flagstar does this?

1
Comment #5 by Hari (anonymous) posted on
Hari
Do you know what are the bank's financial ratings?

1
Comment #6 by Anonymous posted on
Anonymous
I have the same question as "xninjagrrl" has. Anyone knows the answer??

1
Comment #7 by Scott (anonymous) posted on
Scott
Too late for this offer, but for future reference from my own experience, Flagstar appears to mark PayPal and ACH transfers from HSBC as transfers (not direct deposits) but marks ACH transfers from ING as deposits. Not sure if this will qualify for reward or not. I'll post back if I find out.

1