Dedicated to Deposits: Deals, Data, and Discussion

Checking, CD and Savings Account Promotions at Flagstar Bank


Flagstar Bank

Flagstar Bank continues to offer some competitive promotions on its S.M.A.R.T. products. I last reported on these deals in May, and the rates have stayed the same. In addition, another CD special has been added. The following deals are listed at Flagstar's front page as of 8/08/2010:

  • $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 to receive the $100 bonus. $100 bonus will be deposited into the account within 30 days of meeting primary checking relationship requirements." I was told in May by a Flagstar CSR that a primary checking relationship requires a monthly direct deposit of at least $250. A reader who reported to have signed up in Texas commented that an ACH push can qualify, and the bonus will be deposited 30 days after first direct deposit hits the account. The account must remain open for six months to keep the bonus.
  • 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.
  • 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.
  • 1.76% APY 24-month Rising Rate CD with no-penalty feature In this SMART Choice CD you're allowed penalty-free withdrawals at the end of each 6-month period. The gotcha is that the interest rate starts off as 1% for the first six months and goes up 50 basis points after each 6-month period. So your money won't earn much until the last year. It's a stealth type of early withdrawal penalty.

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 May 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."

Flagstar Direct

Flagstar also offers CDs, money market accounts and checking accounts at Flagstar Direct which continues to offer two competitive short-term CD deals: 1.25% APY 6-month CD and 1.55% APY 12-month CD (as of 8/08/2010). The advantage of the SMART Choice 12-month CD is the partial early withdrawal penalty. Even though it's only a partial early withdrawal penalty, it seems to be worth 5 basis points. Please refer to my Flagstar Direct review for more details.

Flagstar Overview

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).

Best CD Rates and Bank Bonuses

To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of To find other bonus deals at other banks, please refer to my bank bonus page which has all of my recent bank bonus blog posts.

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

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Comment #1 by Anonymous posted on
I know that  Flagstar only has one star but they are great people to work with I have done business with them personally and when I was a twp treasurer for many years. They are very helpful whether on the phone, or in the branch, when you walk in they always address you by name. Two of the three branches we have in my area are sit down at a desk type of office. They rarely do any actual cash transactions at their branch as they have 3 ATM's right there. The other day when I went in 2 of the 3 ATM's had people at them and someone was emptying out the third. They immediately asked me if they could manually process my transaction. I like their ATM's  because it is protected because it is by them, it also has camera's at each of the three ATM's, in the branch, and in the entrances. One time I asked to have a transaction processed by them because I had a large (for me) cash deposit and they did it in front of me. They have great service.

Comment #2 by Anonymous posted on
I have delt with Flagstar also.  I had a 5 year CD with them that, unfortunately, matured last year.  I had no problem cashing it out of Flagstar.  I moved it elsewhere to catch just a little more interest income than Flagstar was offering at the time of renewal.  Absolutely not hassel.  I didn't want to leave them but with todays low interest rates, every little bit helps. 

Comment #4 by Anonymous posted on
"Christy" the on-line chatter for Flagstar indicated in June that outside Michigan, Indiana, and Georgia, "primary" checking relationship consists of maintaining a balance of at least $50. This approach has been reported on FatWallet to satisfy the requirements for Flagstar Express Checking bonus.