Flagstar Bank Review: Checking, Savings, CD, Money Market and IRA Accounts

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

Written By

Updated on Sunday, November 1, 2020

Flagstar Bank checking account options

SimplyChecking

You don’t earn any interest with this account, but you could get perks like rate discounts for loans and increased rates for CDs.
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: None
  • ATM fee: $2.50 for out-of-network ATMs
  • ATM fee refund: None, according to bank representative
  • Overdraft fee: $36

The SimplyChecking account is great for those wanting a basic checking account option without needing to worry about monthly fees or minimum deposit requirements. This account also requires a fairly low minimum opening deposit and over 55,000 surcharge-free ATMs at Flagstar Bank and the Allpoint network. Other features include a free Visa debit or ATM card, free bill pay, mobile deposit, online, telephone and mobile banking.

If you have more than $5,000 in deposits across your Flagstar Bank checking, savings and money market accounts, you could get preferred CD rates — not including promo rates. These rates aren’t currently being advertised on their website so you’ll need to call the bank to find out. Account holders are also eligible for a 0.50% rate reduction if you make automatic payments from this account toward your Flagstar Bank home equity loans, home equity lines of credit or personal loans.

How to get the SimplyChecking account

You need to open an account at any one of Flagstar Bank’s branch locations. You can call 1-888-248-6423 for more information on what to bring, but you’ll most likely need to bring your government-issued ID and Social Security number.

SEE DETAILS Secured

on Flagstar Bank’s secure website

SimplyPlus+ Checking

The rates aren’t great but you do get ATM refunds and the ability to waive the monthly maintenance fee.
APYMinimum Balance to Earn APY
0.01%$0
0.01%$1,000
0.02%$10,000
0.02%$25,000
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: $10 (this can be waived)
  • ATM fee: $2.50 for out-of-network ATMs
  • ATM fee refund: Up to 2 times each month
  • Overdraft fee: $36

The SimplyPlus+ Checking account is slightly above the SimplyChecking account in that you do earn interest and receive two ATM refunds. However, the rates are miniscule and they charge a $10 monthly maintenance fee. On the bright side, you can get that waived if you can maintain a minimum average daily balance of $1,000, or $5,000 across your Flagstar checking, saving and money market accounts or if you’re at least 50 years old. You also receive a free box of checks each year.

Like the SimplyChecking account, you get a free Visa debit/ATM card, bill pay, mobile check deposit, online, mobile and telephone banking. You can also get access to over 55,000 surcharge-free ATMs through the Allpoint network. If you have a personal loan, home equity line of credit or a home equity loan, you may be eligible to receive a 0.50% rate reduction if you enroll in autopay from this account. You may also qualify for better CD rates if you maintain a minimum of $5,000 in the account, though you’ll need to contact the bank to see what they are.

How to get the SimplyPlus+ Checking

You need to open an account in person. You can call 1-888-248-6423 for more information but you’ll most likely need to bring your government-issued ID and Social Security number.

SEE DETAILS Secured

on Flagstar Bank’s secure website

Member FDIC

SimplyMax Checking

You can get a higher APY and more ATM refunds, but it comes with a higher monthly maintenance fee.
APYMinimum Balance to Earn APY
0.01%$0
0.03%$5,000
0.04%$25,000
0.04%$50,000
0.04%$100,000
0.04%$1,000,000
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: $25 (this can be waived)
  • ATM fee: None
  • ATM fee refund: Up to $20 each month upon request
  • Overdraft fee: $36

This checking account offers the highest APY out of all Flagstar Bank but it requires a high minimum deposit amount in order to qualify for it. The monthly maintenance fee seems pretty steep but you can waive it if you maintain a minimum average daily balance of $5,000 or have $25,000 in combined balances from Flagstar bank deposit accounts (except IRA products).

Like the other checking accounts, you could get a rate reduction on home equity line of credit, home equity and personal loans. You may also qualify for higher CD rates, though you’ll need to contact the bank to find out what they are. Other features include a free Visa debit or ATM card, bill pay, mobile, online and telephone banking. Account holders also get a box of checks for free each year.

How to get the SimplyMax Checking account

You’ll need to head to a local branch to open an account. To find out more, call customer service at 1-888-248-6423.

SEE DETAILS Secured

on Flagstar Bank’s secure website

Member FDIC

magnifying glass

How Flagstar Bank’s checking accounts compare

We’re sad to say that Flagstar Bank’s checking account rates don’t even come close to what is being offered out there. Other places on our list of the best online checking accounts have low or no monthly maintenance fees (that doesn’t require minimum balance amounts like Flagstar Bank does) and some even offer ATM refunds. Flagstar Bank does offer some ATM refunds with their SimplyPlus+ and SimplyMax checking accounts, but they’re limited to a certain amount per month.

Trust us, you’re probably better off looking elsewhere.

Flagstar Bank savings account options

SimplySavings

The APY is miniscule but you do get ATM access.
APYMinimum Balance to Earn APY
0.03% (regular rate)$0.01
1.30% (promo rate) $0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $3 (this can be waived)
  • ATM fee: $2.50 for out-of-network ATMs
  • ATM fee refund: None, according to bank representative
  • Overdraft fee: N/A

This savings account offers a low monthly maintenance fee and a promotion rate for new money only, which Flagstar Bank defines as money currently not on deposit with the bank. The rate is only available for Michigan residents. This rate will only be for the first 12 months after account opening and it’ll fall back down to the regular rate afterward.

To waive the monthly maintenance fee, you’ll need to either maintain a $300 minimum average balance or if you have a Flagstar Bank checking account. Other features of the account include a free Visa debit/ATM card, online, mobile and telephone banking. There’s also a rate reduction for personal and home equity loans, plus preferred CD rates if you maintain a minimum of $5,000 in your account. Federal Regulation D allows you up to six certain debits a month, so you’ll need to fork over $10 in excessive transaction fees to the bank if you go over the allotted amount.

How to get the SimplySavings account

Currently, you can only open an account in person.

SEE DETAILS Secured

on Flagstar Bank’s secure website

Member FDIC

SimplyMax Savings

The promo rate is pretty good considering there isn’t a minimum balance requirement.
APYMinimum Balance to Earn APY
1.30% (promo rate)$0.01
0.03% $0.01
0.05%$5,000
0.10%$25,000
0.10%$50,000
0.10%$100,000
0.10%$1,000,000
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $25 (this can be waived)
  • ATM fee: $2.50 for out-of-network ATMs
  • ATM fee refund: None
  • Overdraft fee: N/A

The SimplyMax Savings account also offers a promo rate for new money, meaning cash that isn’t currently on deposit with the bank. Unfortunately, it’s only limited to Michigan residents. After 12 months of account opening, it’ll go back to the regular rate.

Like the SimplySavings account, you get a free Visa debit/ATM card, bill pay, online, mobile and telephone banking. You also get preferred rates for a CD account if you maintain a minimum of $5,000 in combined account balances, and a rate reduction on your personal or home equity loans if you make auto payments with this account.

You can waive the monthly maintenance fee if you have a Flagstar Bank checking account or maintain a minimum average daily balance of $25,000. Since this is a savings account, you’re allowed up to six certain debits a month as mandated by Regulation D. Otherwise, you’ll need to pay a $10 excess transaction fee to the bank for each withdrawal you exceed.

How to get the SimplyMax Savings

You can only open an account at a local branch.

SEE DETAILS Secured

on Flagstar Bank’s secure website

Member FDIC

High-Yield Savings

These are the highest savings rates Flagstar Bank offers, but the promo rate has restrictive requirements.
APYMinimum Balance to Earn APY
1.30% (promo rate)$0.01
0.20% $0.01
0.20%$50,000
0.20%$100,000
0.20%$250,000
0.20%$500,000
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $35 (this can be waived)
  • ATM fee: $2.50 for out-of-network ATMs
  • ATM fee refund: None, according to a bank representative
  • Overdraft fee: N/A

Like the other savings accounts mentioned above, the High-Yield savings account is also offering a promo rate that doesn’t have any minimum balance requirements. It’s only available to Michigan residents and the rate is for the first 12 months of account opening. You’ll need new money for this account, meaning any cash that isn’t currently on deposit with Flagstar Bank. After the promo period, it goes down to the regular rate.

The monthly maintenance fee seems a bit steep but you can get it waived if you have a checking account or keep a $50,000 minimum daily average balance. You also get free bill pay, mobile deposit, a Visa debit/ATM card, mobile, online or telephone banking. Remember, Regulation D allows you up to six certain debits each month and you could be paying $10 for each excessive transaction to the bank.

How to get the High-Yield Savings account

Currently, the only option to open an account is in person.

SEE DETAILS Secured

on Flagstar Bank’s secure website

Member FDIC

SimplyKids Savings

For those until the age of 23.
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: $2.50 for out-of-network ATMs
  • ATM fee refund: None, according to bank representative
  • Overdraft fee: N/A

The SimplyKids savings account is for children and needs a parent or guardian as a joint owner. Only those 13 years and up can receive a Visa debit or ATM card. Otherwise, you can only make transfers between the parental and minor account, said a bank representative. Account holders are allowed up to six certain debits a month because of Regulation D or else you’ll be charged a $10 excessive transaction fee from the bank.

With this account, you get higher rates on your first $500 deposited, free online statements, online and telephone banking. If you maintain at least $5,000 in combined deposit accounts you could qualify for preferred CD rates, though you’ll need to check with Flagstar Bank to find out current rates.

Once the child turns 23 years old, the SimplyKids savings account will automatically be converted to the SimplySavings account.

How to get the SimplyKids Savings account

You need to open an account in person.

SEE DETAILS Secured

on Flagstar Bank’s secure website

magnifying glass

How Flagstar Bank’s savings accounts compare

Overall, their promo rates fall slightly short of some off the best offerings out there. Flagstar Bank also doesn’t require a minimum opening or deposit amount on its savings accounts, which we think is great.

You can only open the SimplyKids account in person, which can be limiting depending on your location. If that’s the case, then you may want to look at our list of the best online savings accounts.

Flagstar Bank CD rates

Certificate of deposit

These fixed-rate CDs aren’t really that great, though it does have a low minimum opening deposit.
TermAPY
30 to 89 days0.05%
90 to 179 days0.05%
180 to 364 days0.05%
12 to 17 months0.10%
18 to 23 months0.10%
24 to 29 months0.10%
30 to 35 months0.10%
36 to 47 months0.10%
48 to 59 months0.20%
60 to 71 months0.30%
72 to 83 months0.35%
84 to 95 months0.40%
96 to 107 months0.40%
108 to 120 months0.40%
  • Minimum opening deposit: $500
  • Minimum balance amount to earn APY: $500
  • Early withdrawal penalty: Depends on length of term:
    • 30 to 179 days — 30 days’ interest
    • 180 to 364 days — 90 days’ interest
    • 12 to 35 months — 180 days’ interest
    • 36 to 120 months — 364 days’ interest

This account is a great option if you don’t have a large chunk of cash laying around to set aside for savings. It’s also great if you’re looking to earn a guaranteed rate of return, though the promo rates for the savings account is higher than some of the CD terms.

Interest you earn is compounded daily and credited to your account monthly, according to a bank representative. You may qualify for higher rates if you maintain at least $5,000 in combined checking, savings or money market accounts, though you’ll need to contact the bank directly.

Upon maturity, you have a 10-day grace period to make changes, or else it’ll automatically be renewed for the same term.

However, the following terms do have exceptions:

  • A 13 month term will be renewed to a 12 month term
  • A 19 month term will be renewed to a 18 month term
  • A 25 month term will be renewed to a 24 month term

How to get Flagstar Bank’s CDs

You’ll need to head to a local branch to open a CD account. You’ll mostly likely need to bring a government-issued ID, your Social Security number and a way to fund the account.

SEE DETAILS Secured

on Flagstar Bank’s secure website

Member FDIC

magnifying glass

How Flagstar Bank’s CD rates compare

Sadly, the rates for Flagstar Bank’s CDs are much lower than other competitors on our list of the best CD rates. It does offer a pretty low minimum opening deposit, but so do many other ones. If you don’t have a large amount of cash to spare, then these CDs could work, but only if you’re close to a local branch.

Flagstar Bank money market account options

SimplyMoney Market

The rates are pretty miniscule but the account does come with check-writing capabilities.
APYMinimum Balance to Earn APY
0.01%$0.01
0.03%$5,000
0.03%$10,000
0.03%$25,000
0.03%$50,000
0.03%$100,000
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $10
  • ATM fee: $2.50 for out-of-network ATMs
  • ATM fee refund: None, per bank representative
  • Overdraft fee: N/A

The money market account is best for those who want a hybrid checking and savings account, though the rates aren’t as good as the savings promo rate. You get ATM access and check-writing capabilities, though you are allowed up to six certain debits a month because of Regulation D. If you go over that, you’ll be charged a $10 excessive transaction fee from the bank.

You also get online, telephone and mobile banking with the account. If you have at least $5,000 across your checking, savings and money market accounts, you can get preferred CD rates, though you’ll need to contact Flagstar Bank to find out what they are. There’s also a possible 0.50% rate reduction on home equity lines of credit or personal loans if you use autopay from this money market account.

To waive the monthly fee, you’ll need to either maintain a $5,000 minimum average daily balance or have an open Flagstar Bank personal checking account.

How to get the SimplyMoney Market account

Head to your local branch to open a money market account.

SEE DETAILS Secured

on Flagstar Bank’s secure website

Member FDIC

magnifying glass

How Flagstar Bank’s money market accounts compare

We’re not impressed with these money market rates as there are much higher ones out there. Some of their competitors also have limited check-writing capabilities and no minimum balance requirements.

In other words, you’re better off doing some comparison shopping from our list of the best money market rates or considering Flagstar Bank’s savings accounts.

Flagstar Bank IRA account options

IRA CD rates

IRA CD

The annual fee is a bit of a turnoff.
  • Minimum opening deposit: $500
  • Minimum balance amount to earn APY: $500
  • Early withdrawal penalty: Depends on length of term:
    • 30 to 179 days — 30 days’ interest
    • 180 to 364 days — 90 days’ interest
    • 12 to 35 months — 180 days’ interest
    • 36 to 120 months — 364 days’ interest

The IRA CD account is best for those who want to start small with their retirement savings and prefer a more conservative investment vehicle. Any interest you earn is compounded daily and deposited into your account each month. Unlike the regular CD, there is a $5 annual fee which covers all your accounts under the retirement plan.

When your CD matures, you can make changes such as withdraw cash, make additional deposits or renew for another term within the 10-day grace period. Otherwise, it’ll automatically be renewed, with the exception of the following terms:

  • 13 months — renews to 12 month term
  • 19 months — renews to a 18 month term
  • 25 months — renews to a 24 month term

How to get Flagstar Bank’s IRA CDs

Like the other accounts so far, you’ll need to head to the nearest branch to open an account.

SEE DETAILS Secured

on Flagstar Bank’s secure website

magnifying glass

How Flagstar Bank’s IRA CD rates compare

We want to give this IRA CD a chance, but the rates fall short compared with other places. Many other places on our list of the best IRA CD rates also offer a low minimum opening deposit amount and a wide range of terms, ranging from three months to five years — Flagstar Bank offers rates less than half of their competitors. Plus, you need to open an account in person, which is pretty limiting if you don’t live anywhere near a Flagstar Bank branch.

In short, you’re better off looking elsewhere.

IRA savings account

You can get the annual fee waived upon request.
  • Minimum opening deposit: $500
  • Minimum balance to earn APY: None, per bank representative
  • Annual account maintenance fee: $5 (covers all IRA accounts)
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

The IRA savings account is great for those who want the option to deposit and withdraw cash without many restrictions — there is still the limit of six debits a month as mandated by Regulation D, or else you face a $10 excessive withdrawal fee from the bank.

The annual fee can be waived, but you’ll need to make that request, according to a bank representative.

How to get Flagstar Bank’s IRA savings account

Head to the nearest branch to open an IRA savings account.

SEE DETAILS Secured

on Flagstar Bank’s secure website

Overall review of Flagstar Bank’s banking products

From what we’ve been able to find, the rates offered at Flagstar Bank aren’t that great apart from their promo rates. In addition, their CD and savings accounts offer rates that require a pretty low opening deposit. The promo rates for the savings account (except for SimplyKids) are pretty high, falling slightly lower than their competitors. Those who don’t have a lot of cash laying around will like the fact that you can open most accounts with no minimum opening deposit requirements.

However, the downfall of Flagstar Bank is that it is primarily a brick-and-mortar bank, meaning you can only open an bank account in person at any one of their California and Michigan locations. Hopefully that may change in the future, but for now, if you don’t live near a branch, you’ll have to go elsewhere.