Written by Ali Cybulski | Published on 11/27/2024
Flagstar Bank is a regional institution with over 400 branches across the Northeast, Midwest, Southeast and West Coast. Its parent company, Flagstar Financial, is based in Hicksville, N.Y, with $114.4 billion in assets.
Flagstar’s core offerings comprise personal, commercial, small business and private banking. Personal banking products include checking, money market and savings accounts, and certificates of deposit (CDs).
Flagstar Bank has five checking account options but mainly promotes two: Flagstar Ready Checking and Flagstar Elite Checking. The most popular, according to the bank, is Flagstar Ready Checking, which requires a $50 minimum opening deposit but no minimum balance. The $3 monthly service is waived with paperless statements.
The account comes with a Visa debit card and free access to over 56,000 Flagstar ATMs, your credit score, and account security features like debit card controls and alerts.
Elite Checking, described as “red carpet” banking, is an interest-bearing account requiring a $50 minimum opening deposit and a $1,000 minimum balance to earn interest.
The $15 monthly service fee is waived if you maintain a $25,000 combined monthly average balance in your Flagstar personal accounts. Elite Checking uses a tiered interest rate, meaning the account has multiple rates that can be applied, and a higher balance will earn a higher rate.
Elite Checking also includes access to a dedicated client service line, higher transfer and mobile deposit limits, and premium CD rates for customers enrolled in the Flagstar Elite Relationship Program.
The bank’s other checking accounts:
• Flagstar Student Checking, designed for college students, requires $1 to open and charges no monthly fees.
• Flagstar Military Checking has no monthly fees and includes free checks and other perks for active-duty service members and veterans.
• Flagstar One Checking is a low-cost, checkless account with a $5 monthly service fee.
For overdraft protection, you can link your checking account to a Flagstar savings, money market or another checking account. If there are insufficient funds for a transaction, the bank will automatically move money from the linked account to cover the difference.
Alternatively, you can apply for an overdraft line of credit, which activates if your account runs short. You can also opt out of overdraft protection and monitor your balance with various banking tools.
If you’re looking for a savings account, Flagstar Bank offers five choices and promotes two: Flagstar Performance Savings and Flagstar Ready Savings. Performance Savings is the bank’s high-yield savings account and Ready Savings is a starter account.
It takes just $1 to open a Flagstar Performance Savings, but you need a balance of at least $25,000 to earn an annual percentage yield (APY) of 4.50%. The $15 monthly service charge is waived with a $10,000 average daily balance or a Flagstar personal checking account.
The account includes a debit card but limits ATM withdrawals at 2o per day, with a daily limit of $1,000. If your account is closed within six months of opening, a $30 early closing fee may apply and any earned interest could be forfeited.
Flagstar Ready Savings also requires a $1 minimum opening deposit, with a lower monthly fee of $3, which is waived by keeping a $300 average daily balance, having a personal checking account or being 18 or younger.
The tiered-rate savings account earns a higher interest rate as you save more money. For rates, contact a local branch or call 888-248-6428.
Other types of savings accounts:
• PerfectHealth Savings is a health savings account (HSA) for high-deductible health insurance plans.
• Flagstar Kids Savings is a no-cost account to help your child learn to save and spend.
• Club Savings lets you plan for holiday or vacation expenses with no monthly fee or minimum balance requirement.
If you want features of both savings and checking accounts, consider a Flagstar Money Market account for a better rate than a traditional savings account. Tiered rates are based on your balance, so you earn more interest on higher balances.
Make a $50 minimum deposit to open a Flagstar Money Market account and keep a $2,500 minimum balance to earn interest. The $15 monthly service fee is waived when you maintain a balance of $2,500 or more.
It comes with a Visa debit card and check-writing capabilities for easy access to your funds.
If you want more competitive yields than most traditional savings accounts — and guaranteed rates — you may want to look at Flagstar Bank’s CDs. Minimum deposits start at $500, with terms from 1 month to 120 months.
The bank is promoting three specials for 7-, 13- and 24-month CDs that currently earn APYs of 4.50%, 4.35% and 3.75%, respectively.
For 24/7 account control, Flagstar offers online and mobile banking along with how-to guides on its website. Online banking lets you pay bills, send money with the digital payment service Zelle, set up account alerts and more. Mobile banking allows check deposits, transfers and viewing transaction history.
Customer support is available by phone, online or at a branch. For personal banking help, contact 888-248-6423 from 8 a.m. to 10 p.m. Eastern time Monday to Friday or 8 a.m. to 5 p.m. ET Saturday and Sunday. You can also submit an email form describing your issue.
Flagstar Bank pros and cons
Pros:
• Variety of deposit account options
• Large ATM network
• $1 minimum opening deposit for savings accounts and $500 for CDs
Cons:
• $30 fee and possible loss of interest if Flagstar Performance Savings savings account is closed within six months of opening
• Monthly service charges, though waivers are available for some
• High savings balance needed to earn the best savings account APY
Don't Exceed The FDIC Limit, The Rats Are Now Jumping Overboard
People, I've been with Flagstar and My Banking Direct ever since they topped the chart with 5.55% interest. Had to go with the flow and ended up with 6 months at Flagstar with the first 5 months at 5.55% guaranteed, then undecided rate on the last month. I rated them 5 stars because of this, but if you read their health report closely and check their Texas Ratio closely you will see they are a SEVERE threat to fold. Just wanted to warn those like me, take it while it's good but DON'T exceed the FDIC limit! Revising the before mentioned comment. As of December 8 the 5.55% Promo rate is nearing the end of its run. Received a notice in the mail that my Promo rate is changing to 4.5% after 5 months so if you have the Promo rate would suggest that you monitor your account every morning. Once it drops below the 5.55% I'm going to drain the account leaving a small amount in it. DON'T close your account, they will try to penalize you for doing that before the 6 months is over! This bank is in SEVERE trouble, read it on the internet!
Been With Flagstar For Years
I have been with Flagstar for about 8 years and have never had an issue... well, other than thoer website being very slow. They have one of the highest and sometimes THE HIGHEST interest rate on savings and CD's. I can easily transfer money in and out of my account online and even set up scheduled transfers. I also like that their CD's do not automatically renew, so I don't have to worry about missing the window to transfer the funds like I have with other banks.
Beware Of This Call
I received a call from the local Flagstar to tell me I had to put $100 from an external source into their checking. First she said it only had to leave it in for a day, then changed to a week. I have a large sum in Flagstar savings but don't use the checking account. I asked if it gets interest she said no. I asked if there are penalties if I don't, she said no. So I was really angry that they are calling customers for no real reason other than a money grab!!! I like their rates most of the time, but this is disgusting.
NO Notifications
1_24_25 After a test deposit and full transfer shown valid for a week the bank, whom was Flagstar as well, recalled both payments to another lender with no notification to myself and did not make any efforts to contact me in any way cell, text, email etc.
Having witnessed and checked the transfers I was not aware of the invalid transfers and was notified by my lender the month after I missed a payment.
DO NOT WORK WITH THIS ORGANIZATION.
Data as of Q4 2024
Learn why bank health mattersHealth Grade Components
| Overall | |
|---|---|
| FDIC Certificate # | 32541 |
| Year Established | 1987 |
| Employees | 7258 |
| Primary Regulator | OCC |
| Profit Margin | |
|---|---|
| Return on Assets - YTD | -0.91% |
| Return on Equity - YTD | -11.34% |
| Annual Interest Income | $5.95B |
| Assets and Liabilities | ||
|---|---|---|
| Assets | Q4 2024vs Q4 2023 | $100.1B$114B |
| Loans | Q4 2024vs Q4 2023 | $67.97B$84.81B |
| Deposits | Q4 2024vs Q4 2023 | $76.45B$81.68B |
| Equity Capital | Q4 2024vs Q4 2023 | $8.58B$9.16B |
| Loan Loss Allowance | Q4 2024vs Q4 2023 | $1.2B$992.5MM |
| Unbacked Noncurrent Loans | Q4 2024vs Q4 2023 | $2.88B$589.9MM |
| Real Estate Owned | Q4 2024vs Q4 2023 | $4.9MM$4.3MM |
