Flagstar Bank Review: A Full-Service Regional Bank

GOBankingRates Score

Flagstar Bank
4.4
SCORE
GOBankingRates Best Banks 2023 scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks.
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Quick Take: Flagstar Bank offers a complete menu of banking products, including checking, savings and money market accounts; CDs; home equity, mortgage and personal loans; and investment products. The bank also offers incentives, such as higher rates or waived monthly service fees, for customers who have multiple accounts. However, there may not be a location in your area.
  • Checking Accounts
    4.9
  • Savings Accounts
    4.0
  • CD Accounts
    4.7
  • Money Market Accounts
    4.1
  • Banking Experience
    4.2
How did we calculate this?

Pros

  • Variety of checking, savings and certificate of deposit options
  • Low minimum opening deposits
  • Multiple customer service options
  • Large, nationwide ATM network

Cons

  • Limited number of branches
  • Branches are only located in five states

Flagstar Bank Overview

Flagstar Bank was founded as a federal savings bank in 1987 and has grown into one of the largest regional banks in the United States. The bank has 436 branch locations in five states. Flagstar Bank offers a wide selection of deposit accounts, especially when it comes to checking, savings and CDs. 

Flagstar Bank is among the winners in GOBankingRates’ rankings of the Best Premium Checking Accounts for 2024.

Flagstar Bank Review

Here’s a breakdown of some of Flagstar Bank’s key features to help you determine if this is the bank for you.

Checking Accounts

Flagstar Bank offers four checking accounts.

All checking account holders will receive a 0.50% rate reduction on home equity lines of credit and a 0.25% rate reduction on home equity loans, personal loans and personal lines of credit if they set up automatic loan payments from their Flagstar checking account. Additionally, account holders can take advantage of preferred certificate of deposit rates if they have at least $5,000 in combined balances across Flagstar Bank’s checking, savings or money market accounts.

For interest-bearing accounts, rates vary by location, so check the bank’s website and enter your ZIP code to find the current rates in your area.

SimplyChecking

Flagstar’s SimplyChecking account is a non-interest-bearing account with a $50 minimum opening deposit. The account has no monthly service fee. Overdraft protection from a linked account and bounce protection are also available.

SimplyPlus Checking

Flagstar’s SimplyPlus Checking is an option if you want an interest-bearing checking account. The account requires a $50 minimum opening deposit and has a $10 monthly service charge. However, the service charge can be waived with a $1,000 average daily balance or a $5,000 average daily balance in combined personal checking, savings and money market accounts.

SimplyMax Checking

Flagstar’s SimplyMax Checking requires a $50 minimum opening deposit and features the bank’s top rate of checking interest, which varies depending on the balance. Rates on the SimplyMax Checking account range from to APY.

GOBankingRates has ranked the SimplyMax Checking account among the Best Premium Checking Accounts for 2024.

SimplyOne Checking

People who are interested in non-interest-bearing checking accounts designed to eliminate overdrafts and insufficient funds fees will like Flagstar’s SimplyOne account, which requires a $1 minimum opening deposit. The account is checkless and has a low $5 monthly service charge, which cannot be waived.

Although the account has the same loan and line of credit rate reductions included with Flagstar’s other checking options, it does not include the preferred CD rates or ATM fee waivers.

Savings Accounts

Like Flagstar’s checking accounts, the bank’s savings accounts also have account holder benefits, including a 0.50% rate reduction on home equity lines of credit and a 0.25% rate reduction on personal loans, personal lines of credit and home equity loans when payments are made automatically from this account. Additionally, when you have at least $5,000 in combined balances, you’ll receive access to preferred CD rates.

SimplySavings

The SimplySavings account pays a fairly low APY across all balance tiers and includes a $3 monthly service charge, which can be waived with an average daily balance of $300 or by opening a Flagstar checking account. If you open the account at a branch, there’s no minimum opening deposit. However, there is a $1 minimum opening deposit if you open the account online.

Foundation Savings Plus

Foundation Savings Plus pays varying interest depending on the balance and offers the best rates for savers with $10,000 or more. The account does include a $15 monthly service fee, but it can be waived by owning a Flagstar personal checking account or having a $10,000 average daily collected balance. Like the other savings options, no minimum opening deposit applies if you open the account in a branch.

High-Yield Savings

Flagstar’s High-Yield Savings account fully benefits the most serious savers and offers a APY. The account has a $35 monthly service charge, which can be waived by owning a Flagstar personal checking account or having a $50,000 average daily balance.

CD Accounts

Flagstar Bank has a selection of CDs to choose from with terms from seven days to 10 years. All CDs require a low minimum opening deposit of $500.

Rates on standard CDs vary by term and range from to APY. The one-year term offers an APY of . Preferred CD rates are available for account holders who have $5,000 in combined balances across checking, savings and money market accounts.

Flagstar Bank also offers promotional CDs that feature higher rates.

Money Market Account

Flagstar’s SimplyMoneyMarket account offers tiered interest rates ranging from to APY. Unlike a savings account, you can also access this money market account through checks. 

Banking Experience

The breadth of products and competitiveness of rates that a financial institution offers are important. However, the quality of the actual banking experience is also a factor to consider. Here’s what you need to know about Flagstar’s banking experience.

Customer Support

Flagstar Bank offers its customers plenty of options for getting the help they need. For online, loan and banking support, you can call 888-248-6423, Monday through Friday, 7:30 a.m. ET to 9 p.m. ET and Saturday, 8:30 a.m. to 6 p.m. The bank also has 24-hour voice banking at the same number. The bank also offers secure email messaging on its website, or you can be connected with a customer service representative via live chat.

Mobile App

Flagstar also has a mobile app for both Android and iOS users, which will allow you to deposit checks, pay bills and transfer funds. The app also supports Zelle person-to-person payments. Plus, it’s highly rated — 4 stars on Google Play and 4.6 stars on the App Store.

Comparable Banking Options

Here’s how Flagstar Bank stacks up to some of its competitors.

KeyBank

KeyBank has a much larger branch network than Flagstar Bank — 1,000 branches versus Flagstar’s 436, which makes KeyBank much more convenient to bank with in person. However, Flagstar Bank offers a minimum opening deposit of $500 for its CDs, whereas KeyBank requires a minimum opening deposit of $2,500 for its CDs.

M&T Bank

M&T Bank offers Sunday hours for live online and mobile banking customer service, while Flagstar Bank does not have Sunday hours. Flagstar Bank also offers a much more affordable $500 minimum opening deposit for its CDs and offers term lengths of up to 10 years, whereas M&T Bank requires a $1,000 minimum opening deposit for its CDs and only offers term lengths of up to six years.

Final Take

Flagstar Bank is a full-service regional bank that has all the products and services people look for in a bank. Add to that low minimum opening deposits, easy-to-wave monthly fees and competitive rates and Flagstar might be the bank for you. However, while the bank has branches in five states, it only has 436 branches, which could make in-person banking inconvenient unless you live nearby.

Flagstar Bank FAQ

Here are answers to some of the most commonly asked questions about Flagstar Bank.
  • What is Flagstar Bank's routing number?
    • Flagstar's routing number is 272471852.
  • Is Flagstar a mortgage lender?
    • Yes, Flagstar is a mortgage lender.
  • Is Flagstar Bank FDIC insured?
    • Yes. FDIC insurance covers deposit accounts at Flagstar Bank up to $250,000.
  • Is Flagstar Bank legitimate?
    • Yes, Flagstar Bank is a legitimate bank that is owned by New York Community Bancorp Inc. It is one of the largest regional banks in the country.
  • Are Flagstar and Wells Fargo the same bank?
    • No. In 2018, Flagstar Bank acquired 52 branches from Wells Fargo. The branches are located in the Midwest.
  • Does Flagstar Bank have fees?
    • Yes, Flagstar Bank has various fees, but it does offer options for waiving maintenance fees on many of its checking and savings accounts.

Caitlyn Moorhead and Karen Doyle contributed to the reporting for this article.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Dec. 15, 2023.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

To determine rankings for the Best Premium Checking Accounts, GOBankingRates looked at the following factors from the most premier/costly checking product from the top 25 banks (in terms of total assets): (1) total assets as sourced from the FDIC; (2) minimum deposit to open an account; (3) monthly checking fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); (4) APY on the checking account; and (5) associated and advertised benefits/perks from these premium products. All factors were then scored and combined, with the lowest score being the best. Factors (1) and (2) were weighted 0.5 times, and factor (5) was weighted 3 times.

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