Flagstar Bank is offering a nice savings account promotion for Michigan residents. Flagstar is guaranteeing a 1.00% rate for the first six months on its SuperSmart Savings Account. The rate is good for balances of up to $10 million. New money is required. This rate is listed at Flagstar’s SuperSmart promo page as of 5/21/2013. Note, this page shows a 1.00% 6-mo interest rate and a 0.70% APY. That’s due to the APY being based on the average rate during the first year. After the first six months, a standard rate would apply, and that standard rate is currently around 0.40%. Note, this promo page may not show for zip codes outside of Michigan.
I was told by a Flagstar Bank CSR that this promotion is offered to customers who live in Michigan only. Customers can apply at a branch or online.
Flagstar regularly offers these savings and money market promotions. The main downside with these promos is that the rates will fall substantially when the promo ends. So you may not want to keep the account when you lose the promo rate.
Flagstar used to have an internet bank called FlagstarDirect.com, but that now redirects users to Flagstar.com.
The bank has been hit hard by mortgage problems that started during the financial crisis. However, its financial health has been improving. Its Texas Ratio is still below average at 64.53%, but this is an improvement from last year when it was 68.26%. It currently has an overall health score at DepositAccounts.com of 4 stars (out of 5) based on December 2012 data. Please refer to our financial overview of Flagstar Bank for more details. The bank has been a FDIC member since 1987 (FDIC Certificate # 32541).
How This Savings Account Rate Compares
EverBank’s money market promotion is similar to this one, and unlike Flagstar, EverBank’s accounts are available online in all states. One advantage with EverBank is a higher rate. It’s guaranteeing 1.25% for the first six months. Also. after the promo period, the standard rate is higher (0.76% as of 5/21/13). The main downside is that the maximum balance that qualifies for the promo rate is much smaller. The money market balance cap is $50K and the checking balance cap is $100K. Balances over these amounts will earn a much smaller rate.
Searching for the Best Savings & Money Market Rates
To review other top rates on liquid accounts, please refer to our savings account and money market account rate tables. You can often get better deals on checking accounts. To find the best rates, please refer to our checking account table for regular checking accounts and our reward checking account table.