Flagstar Bank

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

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