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Competitive 6-Month & 1-Year CD Rates at Flagstar Direct - Available Nationwide

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Flagstar Bank

Flagstar Direct is offering two competitive internet CDs: a 1.55% APY 12-month CD and a 1.25% APY 6-month CD. Minimum deposit is $500. These rates are listed in Flagstar Direct's CD page as of the morning of 7/19/2010.

Refer to the disclosures tab of the Flagstar Direct CD page for more CD details. According to the disclosure, the 6-month CD has an early withdrawal penalty of 30 days of interest. The 12-month CD has a 180-day penalty. When I checked with Flagstar last year, I was told that the CD can be funded with an ACH transfer, but they didn't have an ACH option to receive the funds at maturity.

Flagstar Bank launched Flagstar Direct late last year. Before that time, it had offered its Express Money Market Account nationwide since 2007. The account had a history of competitive rates until December of last year when the rates plummeted. Since that time I haven't paid much attention to Flagstar Direct. It appears the CD rates at least are back to being competitive. The money market account is more competitive (relatively speaking) than what it was in late December, but it's still a little low at 1.06% APY for balances under $100K. It does have two nice features: 1) no minimum balance, and 2) free checks for life. Flagstar Direct also has a internet checking account with these same features. Compared to internet checking accounts at ING Direct, Charles Schwab and Salem Five Direct, Flagstar's checking account is not bad. It currently has a rate of 0.85% APY on all balances as of 7/19/2010.

Flagstar Bank currently operates around 165 branches in Michigan, Indiana and Georgia. The bank has been hit hard by mortgage problems that started during the financial crisis. It has made some improvements this year with an increase in its Tier 1 Capital Ratio. More details about Flagstar's financial health are available at our financial overview of Flagstar Bank. The bank has been a FDIC member since 1987 (FDIC Certificate # 32541).

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To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.

  Tags: Flagstar Bank, CD rates, money market accounts, checking account

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Comments
8 comments.
Comment #1 by Anonymous posted on
Anonymous
man I'm gettin sooo tired of this SOS!

the banks are gettin free money they turn around and buy 3% T's with,while tellin you they can't pay you for your money.  the corp are hording billions, and uncle ben keeps sayin he's gona keep interest rates at 0 for an "extended" time. while the OMB keeps commin out with BS CPI figures to keep from payin out any COLA. all the while NOTHING I  buy or the bills I pay have gone down by the so called deflation.

4
Comment #2 by Anonymous posted on
Anonymous
There is no deflation, it is immaginary number pulled of the sleeve by the FEDs to muddy the waters and not pay any interest to the people.

4
Comment #8 by Rosedala (anonymous) posted on
Rosedala
Thank you Sweet Molly Malone and O'Grady for your opinions on Flagstar.  I'll go now to open a year CD at 1.55% interest despite the fact of seeing its financial condition.  :o)       

1