Dedicated to Deposits: Deals, Data, and Discussion

CD, Savings & Checking Account Promotions at Flagstar - Available Nationwide


Flagstar Bank

Flagstar Bank is offering some competitive promotions on its S.M.A.R.T. products. The following deals are listed at Flagstar's front page as of 5/25/2010:

  • 1.50% APY savings account with the rate guaranteed for 4 months. After promo period, the rate reverts back to the standard Express Savings Account. No minimum balance requirement.
  • $100 bonus to open the Express Checking Account. According to the small print, "Customer must open and maintain a new primary checking relationship at Flagstar Bank with a $50 minimum balance." The CSR told me this morning that a primary checking relationship requires a monthly direct deposit of at least $250.
  • 1.50% APY 12-month CD with a partial no-penalty feature. In this SMART Choice CD you're allowed one penalty-free withdrawal during the term, however, it's limited to half the initial balance. Minimum deposit is $500.

According to the CSR, you can participate in all of the above promos. You are not limited to just one. The online application allows you to use ACH transfers to fund the accounts.

To see the promo pages, you have to enter your zip code. In the past, Flagstar promos were limited to their market area (MI, GA & IN). However, this does not seem to be the case for these current promos. Any zip code appears to show the same promos. In addition, I was told by the CSR that any zip code can qualify.

I also asked the CSR if they do a hard credit inquiry in the application process. According to the CSR, it's a "soft pull to just view banking history."

Finally, I asked about how long these promotions would last. He wasn't able to say, but he thought they would at least last through today. As is common, they're subject to change at anytime.

Flagstar's Express Money Market Account

Flagstar still has its internet bank at Flagstar has been offering an internet money market account since July 2007. The rates had remained competitive until last December when the rate plummeted. Just recently the rates have become a little more competitive for an internet money market account although they're nothing to get excited about. As of 5/25/2010, the top rate is 1.20% APY, but this requires a $100K minimum balance. Under $100K, the rate drops to 1.06% APY. This low tier rate had been 0.60% in April. The Express Internet Checking has a 0.85% APY on all balances. These accounts do offer some perks like free checks and free identity theft protection.

Financial/FDIC Info

Flagstar has been hit hard by the mortgage crisis, and it has been losing money since 2007. Flagstar reported its 1st quarter earnings in April. Losses widened, but loan-losses went down and it succeeded in issuing additional shares to help shore up its capital reserves. continues to give Flagstar a 1-star rating (lowest) for safety and soundness. BauerFinancial gives Flagstar Bank 2 stars (problematic). Our health score for Flagstar is 3 out of 5 (see our Flagstar rates and reviews page). All ratings are based on 12/31/09 financial data. Flagstar Bank is a member FDIC (FDIC Certificate # 32541).

  Tags: Flagstar Bank, Georgia, Michigan, Indiana, CD rates, savings account, checking account

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Comment #1 by Anonymous posted on
How many DD should be set up to the account?

Comment #2 by Anonymous posted on
Signed up today--offer in Texas requires only a $1 opening deposit.  Must DD at least $250 per month...ACH push counts.


$100 deposited 30 days after 1st DD hits account.  Must keep account open and "active" for 6 months otherwise bonus can be revoked.

Comment #3 by Anonymous posted on
Anyone looked any further into this $100 checking bonus?  The website and application list nothing at all about a DD or ACH push, just, "Customer must open and maintain a new primary checking relationship at Flagstar Bank with a $50 minimum balance to receive the $100 bonus. $100 bonus will be deposited into the account within 30 days of meeting primary checking relationship requirements. Flagstar will issue a 1099 for the $100 Bonus. Conditions and restrictions apply. Offer subject to change or cancellation at any time without notice."


Is "meeting primary checking requirements" how they are asking for the DD/ACH?  Anybody have a link to anything in writing that describes it?

Comment #4 by Anonymous posted on
*$100 deposit or 2% Annual Percentage Yield (APY) available for new personal checking account customers only (no existing Flagstar checking account). To qualify, open a new personal checking account with a minimum deposit of $1 and set up an automatic, recurring direct deposit of income of at least $250 per month, excluding interest deposits. Direct deposit must be established within the first 60 days of account opening. $100 bonus will be deposited into your account within 30 days after the first recurring direct deposit takes place. All accounts must remain open and active for a minimum of 6 months. If checking account is closed within the first 6 months, Flagstar reserves the right to reclaim the $100 deposit or interest. 2% APY is accurate as of 2/22/2010 and is guaranteed for 3 months after account opening. Maximum deposit is $100,000. Funds may not currently be on deposit with Flagstar Bank. Offer good only when opening a Flagstar interest-bearing checking account. Account fees could reduce earnings. Direct deposit must be established within the first 60 days of account opening or the rate is reduced to current rate. See your Flagstar representative for more details. Flagstar will issue a 1099 for the $100. Offer not good in conjunction with any other coupons or checking account offers. Some restrictions apply. Limit one $100 deposit or 2% APY offer per customer per account. Offer subject to change or cancellation at any time without notice. Flagstar reserves the right to reduce the 2% APY to the then available rate prior to the 3 month expiration date if checking balances exceed the $100,000 maximum.

Comment #5 by Anonymous posted on
I talked to a CSR today and she told me that the $100 checking bonus does NOT require direct deposit. I was told that to qualify, I must maintain a $50 account balance and that the account must remain open for 6 months. That's it.