My Banking Direct

Deposits held and insured by Flagstar Bank

Overview / Commentary
P.O. Box 190
Hicksville, NY 11801
Deposits held and insured by Flagstar Bank

My Banking Direct is an online financial service of Flagstar Bank, N.A. My Banking Direct offers a competitive high yield online savings account which ranks in the top 25 highest savings rates on All deposits are FDIC-insured up to $250,000.

Easy Account Setup

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Last week, I successfully opened two accounts, and the process was straightforward. Some reviews expressed surprise at the 9-business days holding period for the initial deposit, but this is clearly explained during the account opening process. Additionally, the deposit continues to accrue interest while on hold, so I have no issues with it. I used the messaging system to inquire about my account on my online profile and received a response in less than 24 hours. One thing to keep in mind is that there are limits on external transfers, with a $50,000 limit per transaction and a $200,000 limit for a rolling period of 30 days. So far, I am happy with the experience, and everything is working great.

Still Early

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I recently opened a high yield savings account to get the highest interest available but also to be able to transfer money back and forth between this bank and my brokerage bank. Come to find out the banks will not sync unless I have a checking account as well so I opened one. All my other bank accounts allowed syncing with only a savings account. After calling, each bank blamed the other for the issue. Now when I want to transfer money to my brokerage I have to first transfer from my savings to my checking account then to the brokerage account. An extra unnecessary step but it is what it is. The make or break for me will be how long the funds take to get to my external accounts. My initial deposit took 9 business days to clear. Other transfers were faster. Next I will see how long it takes to withdraw.

Rate Information Will Be 5.41% With An Annual Percentage Yield Of 5.55%.

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Rate Information
At our discretion, we may change the interest rate on your account at any time.
The initial rates for your account are:
If your daily balance is $50,000.00 or more, the interest rate paid on the entire balance in your account will be 5.41% with an annual percentage yield of 5.55%.
If your daily balance is $10,000.00 or more, but less than or equal to $49,999.99, the interest rate paid on the entire balance in your account will be 5.41% with an annual percentage yield of 5.55%.
If your daily balance is $1.00 or more, but less than or equal to $9,999.99, the interest rate paid on the entire balance in your account will be 5.41% with an annual percentage yield of 5.55%.
If your daily balance is less than or equal to $0.99, the interest rate paid on the entire balance in your account will be 0.00% with a(n) annual percentage yield of 0.00%.

Avoid At All Costs

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Lured in by the promise of a 5.5% interest rate, I signed up for a savings account - I needed to have easy access to my money, as I knew I had some big payments/purchases coming up, so high interest rate plus liquidity seemed like a win win.

I subsequently transferred more than $90,000 - money it has taken me years and years to save up with Synchrony Bank account (God I wish I’d just left the money there) - to this new high yield savings account.

The transfers into the account - both from my Synchrony savings account, and my other checking account, were very easy, and I received interest payments on the amount.

However, as easy as the money was to get into the account, it has so far been impossible to get my money OUT of the account.

The first big payment I had to make ended up being the end of April, so I initiated the transfer back to one of the external accounts - a checking account - from which I had moved money previously. The transfer was to take 3 business days and showed as “in progress”. Seemed reasonable and easy enough.

The transfer was rejected the night before it was scheduled to go into my external checking account, and my ability to make external transfers was suspended. Over the course of the next week, I called multiple times - spoke to Federico the first time (said he’d “send an email to the back office” and that I should hear back from them in 3-5 business days - never heard anything), Amy the second time (also told me the same and that she’d send a follow-up email, and again, nothing), another individual whose name I forget but who again, got me nowhere.

Finally, I spoke to Alinda, who consulted with the back office and told me the issue had been resolved, lifted the suspension while I was on the phone and told me to try again. Alinda also promised to call me back the next day, because I expressed my concern that the same thing would happen again, but I heard nothing.

Sure enough, just as before, the transfer sat “in progress” for multiple days, then the night before it was due to complete, it was rejected and my ability to make external transfers was again suspended.

At this point, I was incredibly stressed and facing issues making the payment I needed to make.

I called MBD/Flagstar again. This time, I spoke to Sarah. She again lifted the suspension and, consulting with the back office and her system, could see no issues with the account itself, nor with the external accounts I had linked (which, as you will recall, MBD/Flagstar had happily received transfers from already). She assured me that this time the transfer would work, and had me initiate once again.

Sarah also recommended I try to initiate the transfer from my external accounts, as another way to try to extract the funds from the MBD/Flagstar account. I did this, and saw the verification amounts from one of my external account - my savings account - go into the MBD/Flagstar account.

Terrifyingly enough, MBD/Flagstar would not return these verification amounts to my external account (only $0.57!), so my external account - with an actual reputable and real bank - could therefore not verify the MBD/Flagstar account! As if I wasn’t already questioning the validity of this bank!

My other checking account, meanwhile, did not even successfully deposit the verification amounts, and sent me a secure message to say the exact same thing: that they too could not add the MBD/Flagstar account.

Given all of this, plus the numerous emails and “secure messages” I have sent to MBD/Flagstar (with no response, I might add), I can only conclude that this bank is fraudulent.

I am filing a complaint with the FDIC and the OCC to get the institution investigated - I don’t see that I have any other choice.




Data as of Q1 2024

Data displayed below is for insuring bank: Flagstar Bank
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Additional Factors: Institutions with a small asset base, a short operating history, or negative return on equity can represent an instability risk beyond what their financial ratios indicate. My Banking Direct has a negative return on equity.

Health Grade Components

FDIC Certificate #32541
Year Established1987
Primary RegulatorOCC
Profit Margin
Return on Assets - YTD-1.08%
Return on Equity - YTD-13.3%
Annual Interest Income$1.51B
Assets and Liabilities
AssetsQ1 2024vs Q1 2023$112.8B$123.6B
LoansQ1 2024vs Q1 2023$82.09B$83.3B
DepositsQ1 2024vs Q1 2023$75.53B$84.95B
Equity CapitalQ1 2024vs Q1 2023$9.27B$11.59B
Loan Loss AllowanceQ1 2024vs Q1 2023$1.22B$549.6MM
Unbacked Noncurrent LoansQ1 2024vs Q1 2023$811MM$162.6MM
Real Estate OwnedQ1 2024vs Q1 2023$4.1MM$9.1MM
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My Banking Direct Savings Account Rates

5.55%$1-High Yield Savings

My Banking Direct CD Rates

5.50%$2.5k-5 Month CD Special

My Banking Direct is an Internet only bank and does not have branch locations. Its headquarters is located at P.O. Box 190 - Hicksville, NY 11801

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