Flagstar Bank
Fees
Minimum Deposit
Current Promotion
APY Savings
Flagstar bank received its charter in 1987 and has since grown to 160 branches across Michigan, Indiana, California, Wisconsin, and Ohio. Employing more than 3,500 employees, the bank is still a traditional brick-and-mortar bank. However, it also adopted banking innovations such that they offer online and mobile banking plus ATM services.
Although the bank started as a mortgage lender, it has successfully developed its community banking business – with a lot of synergy going on with its loan products. Customers can get a discount on their loan rates if they open a deposit account and use that to pay for their loans. Another good feature of their deposit accounts is their several overdraft protection options.
Flagstar Bank can be a perfect fit if:
- You prefer an online bank
- You may need a mortgage soon
- You live in the Flagstar operating states
- Variety of banking products
- Access to physical branches
- Large ATM network
- Fees
- Lower Rates on Savings
- Physical branches in only five states
Does Flagstar offer a free checking account?
Unfortunately, none of the standard Flagstar checking accounts are fee free. All the accounts all have some form of monthly maintenance fee from $10 per month. However, it is possible to have the fee waived by meeting at least one of the waiver criteria requirements.
For example, you can have the $10 fee for the SimplyAccess checking account by either maintaining an average balance of $1,000, having 10+ debit card transactions, $500+ in ACH credits, or being age 24 or under.
What Flagstar products are inflation proof?
Flagstar has a wide product line with banking products to suit various circumstances. However, many of these products are not inflation proof. The exception to this is the bank’s lending products.
You can obtain a Flagstar fixed rate home loan, or personal loan that will allow you to set your monthly rate that will not increase even if the rate of inflation goes up. So, even if your other expenses increase, you can rely on the fact that your loan payment will remain the same.
Can you close Flagstar bank account over the phone/online?
The only way to close your Flagstar bank account is to visit your local branch. You will need to bring your proof of ID, account details and any cards associated with the account.
The branch staff will have you complete a form and then they can process it there and then. If your account has no outstanding transactions and has a zero balance, the closure should happen immediately.
Can you buy/invest in Crypto via Flagstar?
Flagstar does not specifically state that it is possible to buy or invest in cryptocurrencies via its investment platform. Since crypto is a relatively new addition to bank investment platforms, it is likely that if this was a possibility Flagstar would be heavily promoting this.
So, if you are interested in cryptocurrencies, Flagstar may not be the best option for you.
Is Flagstar a good bank for teens?
Flagstar has a dedicated savings account for children called SimplyKids. This account is designed to help minors to develop responsible financial habits with one to one money management advice.
There is a high interest rate on the first $500 and transfers between this account and parental checking accounts are free. Children aged 13+ can also have a free debit/ATM card for the account. This makes this a great option for teens who want to learn more about managing their money.
Flagstar Bank Review
Banking Services | Credit Options | ||
|---|---|---|---|
Savings Accounts | Mortgage | ||
Checking Accounts | Government Mortgage | ||
CDs | Credit Cards | ||
Money Market Account | Debit Card | ||
Investing Capabilities | Personal Loans |
Flagstar Bank Pros & Cons
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Savings Account
The fundamental, uncomplicated account offered by Flagstar is called SimplySavings. No matter how much you deposit, the interest rate is 0.03%, and there is a $3 monthly service charge. The rates are quite low – as a comparison, Capital One savings account offers 4.25% APY, and you can get 4.30% – 4.50% APY on Barclays savings account, as of September 2024.
The High Yield Savings account won't be your best bet if you are after the best savings interest rate. However, the monthly maintenance fee is eliminated if you hold a personal checking account with Flagstar or keep an average monthly balance of $50,000.
Flagstar offers the SimplyKids for children and adults up to 21 years old. Second, the Health Savings Account help customers plan for healthcare cost. The features of the different savings accounts are nearly identical except for the APYs, which can be an essential factor when choosing a savings account.
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Checking Account
The checking accounts come with standard features that other banks also offer such as online and mobile banking access, free ATM/debit card, free access to ATMs, and overdraft protection. What puts them ahead of their competitors is that the linked accounts give customers a small reduction in their loan rates. Unfortunately, our experts have not included Flagstar on our top checking account of 2024.
Since Flagstar has a very robust loan account portfolio, this feature is something that would appeal to many customers. The variety of checking accounts offers features that would appeal to customers with specific needs. While many product features and benefits identically appear in different types, there are certain characteristics that set each type apart from each other.
It starts with the very basic SimplyOne, which is a “checkless” checking account. It is the starter checking account with no minimum amount required to open and comes with a very low mandatory monthly service fee.
For the more affluent clients, they have the SimplyMax Checking Account which gives a better APY. Although the rates aren’t by any means grand, they are better than zero.
Certificate Of Deposits (CDs)
Initial Deposit
Minimum Balance
APY
Right off the bat, you can see that the APY isn’t stunning. In fact, the rates for each tier don’t even come close to the national averages. You get the feeling that this product is here just for the sake of having one and not really to generate the numbers for the bank. For example, American Express bank CDs you can get an APY of Up to 4.25%.
The good news is that you can start with $500 to have a CD account when many banks will ask for more. And if you’re looking for a place to park your money productively just for one week, they will welcome your funds as their CD minimum term starts at 7 days.
Money Market Account
Initial Deposit
Minimum Balance
APY
Their money market account is a good way to start your foray into the money market arena because they don’t require a substantial amount to open one, unlike other banks. As you can see, all it takes is a dollar to open one online. The features are standard and it lets you get a discount on your loan rate.
However, you have to contend with a fixed rate that’s half of the national average rate for money market accounts. If you’re just in the money market to get a feel of it, this is a good option. But if you’re after a good rate, many banks have better offers.
Mortgage & Loan Options
Flagstar offers a variety of mortgage products, including fixed-rate loans with terms of up to 30 years, as well as FHA, Jumbo, and VA loans. Flagstar strives to make the process as simple as possible, whether you are a first-time buyer or have previously purchased a home. You can apply online, and Flagstar bankers will walk you through the process and advise you on loan terms and the best rates available.
Flagstar also provides loans for automobiles, boats, and motorcycles. While the terms are flexible, qualified customers can borrow up to 110 percent of the vehicle's value, there is no traditional personal loan option. Flagstar loans have one advantage in that the bank offers rate discounts to new customers and those who link their loan to a Flagstar checking account.
Credit Cards
Flagstar offers credit card options, including its Secured card, which can help you build credit. There is also a student rewards card that offers 1.5 points per dollar spent and has no spending limit.
Flagstar also offers a credit card designed to assist you in reducing your credit card balance. The Visa Platinum card offers a low introductory rate for an extended period of time, allowing you to save money on interest payments.
The standout card option has to be the Max Cash Preferred card, which has a tiered reward structure and allows you to earn up to 5% cash back. Bonus rebates are also available when you make purchases at supermarkets and gas stations. If you prefer simplicity, the Visa Real Rewards card pays 1.5 points per dollar spent with no spending limit or categories.
- Variety Of Banking Products
From savings accounts to credit cards and government mortgage, Flagstar bank offers a variet of banking products for every need.
- Access to Physical Branches
In case you live in Michigan, Indiana, Wisconsin, Ohio, and California, you can enjoy face-to-face service and access to Flagstar physical branches.
- Large ATM Network
Flagstar does not charge its customers for ATM withdrawals that customers make through any of the Allpoint ATMs, which have around 55,000 machines worldwide. Depositors can also access their money in ATMs in many CVS and Walgreen pharmacies without charge.
- Branches Are Mostly In The Michigan Area
Yes, the bank does have more than 150 branches but they exclude a lot of areas. This means that they have limited access just to customers who live in their service areas.
If you don’t live in Michigan, Indiana, Wisconsin, Ohio, and California, chances are, the bank won’t have a nearby branch for you.
- Lower Rates on Savings
Flagstar rates are quite low compared to what other high-yield accounts offer these days.
- Fees
The bank charges a monthly maintenance fee, unlike many other banks that skip it. That being said, you have the option to waive your monthly fee if you meet Flahstar requirements.
Customer Experience
Flagstar's website has a clean design and is simple to use, providing a great user experience. You can investigate and compare the products, as well as access support materials.
Flagstar's website includes a comprehensive support section with FAQs and stock forms. However, if you need to speak with an agent, there is only a voice banking line available 24 hours a day, seven days a week. Other customer service lines are typically open from 7.30 a.m. to 9 p.m. on weekdays and 8.30 a.m. to 6 p.m. on weekends.
Flagstar's app has a rating of 4.6/5 in the Apple App Store and 4.1/5 in Google Play.
Flagstar Bank | |
|---|---|
App Rating (iOS)
| 4.6 |
App Rating (Android) | 4.1 |
BBB Rating (A-F) | A+ |
Contect Options | phone |
Availability | 7:30 am – 9 pm |
Should You Consider Flagstar?
The bank has a focus on loans so it has a lot of appeal to a customer looking for a bank to finance or refinance his home. The lending relationship is the driving factor rather than the deposit products’ attractiveness. If you fit that profile, this could be a good choice for a bank. It’s also convenient provided that you live in the North-Central United States.
Although they have many loan offices scattered all over the 50 states, there’s nothing like access to a full branch for your banking needs. If you live elsewhere and need a bank that has a presence in your area, it’s better to go to a more local bank.
This bank has good potentials. Loans are what give banks the big bucks. Flagstar has cemented its place in the lending market and is now developing its deposit market.
Flagstar Bank FAQs
Flagstar is a federal savings bank that has been operating since 1987. It offers a variety of financial products including bank accounts, loans and mortgages. While it isn't Better Business Bureau accredited, Flagstar does have an A+ BBB rating.
Additionally, Flagstar does have FDIC insurance coverage for up to $250,000. So, you can feel confident that this bank is legit and safe.
While Flagstar Bank does have some regional branches, many users will access its services via its online platform. Online you can access low fee accounts with no monthly service fees on the basic checking accounts.
You can use the Presto and Allpoint ATM network for easy access to your cash and manage all other transactions online.
Flagstar does have an extensive variety of products and services that can meet your banking needs.
While there are more competitive saving rates elsewhere, if you are looking to have all your financial products under one roof, you can enjoy a reduced loan rate due to your existing deposit account.
This is a slightly complicated issue since Flagstar Bank purchased over 50 Wells Fargo branches in 2018, taking over the management of over 50,000 Wells Fargo customer’s accounts. So, if you’re in the MidWest, Flagstar and Wells Fargo may be one in the same for you.
However, if you’re in another area of the country, it will come down to your preferences. If you prefer a bank that offers access to high street branches, you’re likely to prefer Wells Fargo bank account. But, if you don’t mind dealing with all your transactions online, you’re likely to find the Flagstar products more appealing.
Bank of America is a more well-known brand, but this doesn’t necessarily mean that it is a better choice for you. Both Flagstar and Bank of America have FDIC insurance and offer a variety of banking products.
However, Flagstar does have account minimums and two of the three checking account options do not interest earning. Additionally, Bank of America's credit card options is limited.
So, unless you have very basic banking needs, you’re likely to find Bank of America has more to offer.
Online Banks Alternatives
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APY Savings
The annual percentage yield (APY) is a percentage that represents the amount of money or interest earned on your savings account over the course of a year. The APY factored in compound interest. A savings calculator can help you quickly determine how much you'll earn with a given APY.
| Up to 3.00%
| 2.00%
| Up to 0.61% |
Checking Account Fee
The monthly fee on checking account
| $0 | $0 | $0 |
Checking Minimum Deposit | $0 | $0 | $50 |
Mobile App Rating | 4.7/5 on iOS, 4/5 on Android | 4.8/5 on iOS, 4.6/5 on Android | 4.7/5 on iOS, 4.6/5 on Android |
BBB Rating | A+ | F | A+
|
How We Rate And Review Banks: Our Methodology
The Smart Investor team extensively reviewed hundreds of banks and credit unions. We assessed them based on four main categories, each with specific features:
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Diversity of Products and Their Attractiveness (40%): We extensively analyzed the breadth and appeal of each bank's product offerings, including savings accounts, checking accounts, loans, investment options, and more. Higher ratings were assigned to banks with a diverse range of products that are attractive in terms of interest rates, fees, terms, and additional features. This category provides insights into the variety and value of the bank's offerings, crucial for meeting customers' diverse financial needs.
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Account Features (30%): This category delves into the features and benefits accompanying each bank's accounts. We scrutinized factors such as promotions, deposit and withdrawal options, ATM accessibility, online and mobile banking functionalities, as well as additional perks like overdraft protection and rewards programs. Banks offering comprehensive and convenient features received higher ratings, reflecting the overall value of their accounts to customers.
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Customer Experience (20%): A positive customer experience is paramount in banking, so we evaluated each bank's performance in this area. This included assessing the ease of account opening, quality of customer service, availability of support channels, and overall user satisfaction. Ratings were based on factors such as responsiveness, efficiency, and the bank's commitment to meeting customer needs, ensuring a seamless and satisfactory banking experience.
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Bank Reputation (10%): The reputation of a bank is a critical consideration for customers. We examined factors such as financial stability, regulatory compliance, and public perception to determine each institution's overall trustworthiness and reliability. Higher ratings were awarded to banks with strong reputations, reflecting their credibility and ability to inspire confidence among customers.
By considering these categories, individuals can make informed decisions that align with their financial needs and preferences, ensuring they choose a bank that offers competitive products, excellent features, a positive customer experience, and a solid reputation.
Compare Alternative Banks
Flagstar vs Wells Fargo
Wells Fargo offers a diverse range of banking services. Checking accounts, savings accounts, loans, mortgages, wealth management solutions, and investment options such as 401ks and IRAs are all available. Flagstar also offers a diverse product portfolio that includes a variety of checking and savings accounts, investments, home loans, and loans and investments.
It is important to note, however, that Flagstar does not operate in all states. This bank only operates in Michigan, California, Ohio, Indiana, and Wisconsin, where it has 150 branches. As a result, if you live outside of these areas, you may be unable to use Flagstar's banking services.
Read Full Comparison: Wells Fargo vs Flagstar: Which Bank Is Better For You?
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