My Banking Direct
Written by Jessica Merritt | Edited by Rebecca Stropoli | Published on 12/13/2024
My Banking Direct is an online-only banking service from Flagstar Bank that offers checking, high-yield savings and certificate of deposit (CD) products. As a digital banking platform, My Banking Direct has no physical locations, but its banking services are available online and through the mobile app.
Its Direct Checking account requires only a $1 minimum opening deposit and charges no monthly maintenance or overdraft fees. It offers a My Banking Direct Visa debit card with access to more than 55,000 fee-free ATMs.
The tiered-rate High Yield Savings Account earns a competitive annual percentage yield (APY) of 4.75%, with a $500 minimum opening deposit and no monthly maintenance fee. There’s just one CD option, offering a 5-month term with a competitive 4.60% APY as long as you meet the $2,500 minimum deposit requirement.
My Banking Direct provides comprehensive banking services through its online portal and mobile app. You can view account balances, make mobile deposits, transfer funds, pay bills and access credit score monitoring.
Reach customer service by phone at 866-285-1856 between 8 a.m. and 8 p.m. Eastern time Monday through Friday; 9 p.m. and 5 p.m. ET Saturday; and 9 p.m. and 2 p.m. ET Sunday. Automated phone support and secure online messaging are available 24/7. Send letters to P.O. Box 190, Hicksville, NY 11802.
Pros and cons of My Banking Direct
Pros:
• The high-yield savings account earns a competitive APY with no monthly maintenance fees.
• You need only $1 to open a checking account with no overdraft or monthly fees.
• You can access online and mobile banking and use over 55,000 fee-free ATMs worldwide.
Cons:
• No physical branches are available.
• A $500 minimum deposit is required to open the high-yield savings account.
• Product selection is limited compared with many other banks, with only one CD term option.
Easy Account Setup
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.
Rates Dropping For The Past 2 Months. Down To 4.89% 10/1As Of
Rates were some of the best and it was a very simple platform. Difficult to withdraw or deposit quickly, but if it's just money that you keep for an emergency like I do, then that's an acceptable shortfall.
I signed up and rates were 5.53% and I noticed in my monthly statements that the interest being paid was less and less despite my balance growing every month.
Just pulled my statement and here's the rate changes during this calendar year:
5/1/24 - 5.53%
6/1/24 - 5.41%
7/1/24 - 5.41%
7/12/24 - 5.32%
8/2/24 - 5.22%
8/23/24 - 5.13%
9/20/24 - 4.89%
Nearly a full percentage drop in 2 months. Time to start looking for options soon since they don't offer any spectacular UI or customer experience.
Avoid At All Costs
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.
DO NOT USE THIS BANK!
Good Experience No Issues
I have had deposits with them for a few years. No issues. Have not had any issues with transfers in and out. Great experience.
Data as of Q1 2025
Health Grade Components
| Overall | |
|---|---|
| FDIC Certificate # | 32541 |
| Year Established | 1987 |
| Employees | 6807 |
| Primary Regulator | OCC |
| Profit Margin | |
|---|---|
| Return on Assets - YTD | -0.31% |
| Return on Equity - YTD | -3.55% |
| Annual Interest Income | $1.16B |
| Assets and Liabilities | ||
|---|---|---|
| Assets | Q1 2025vs Q1 2024 | $97.57B$112.8B |
| Loans | Q1 2025vs Q1 2024 | $65.96B$82.09B |
| Deposits | Q1 2025vs Q1 2024 | $74.44B$75.53B |
| Equity Capital | Q1 2025vs Q1 2024 | $8.6B$9.27B |
| Loan Loss Allowance | Q1 2025vs Q1 2024 | $1.17B$1.22B |
| Unbacked Noncurrent Loans | Q1 2025vs Q1 2024 | $3.3B$811MM |
| Real Estate Owned | Q1 2025vs Q1 2024 | $4.8MM$4.1MM |