Flagstar Bank Review: Variety of Accounts With Multiple Customer Service Options
GOBankingRates Score
-
Minimum Opening Deposits
4.5
-
Monthly Fees
4.0
-
Customer Service
4.8
-
Rates
4.2
Pros
- Variety of checking, savings and certificate of deposit options
- Low minimum opening deposits
- Multiple customer service options
Cons
- Limited number of branches
- Branches are only located in five states
About Flagstar Bank
Flagstar Bank was founded as a federal savings bank in 1987. It has assets of $27 billion and is the third-largest savings bank in the United States. The bank has 150 branch locations in five states — Michigan, Indiana, California, Wisconsin and Ohio. Flagstar Bank offers a wide selection of deposit accounts, especially when it comes to checking, savings and CDs. Read on to find out why GOBankingRates ranked Flagstar Bank as one of its Top 100 Banks in its Best Banks rankings for 2022.
Checking Accounts
Flagstar Bank offers four different checking account options. Here’s a look at each one.
SimplyChecking
Flagstar’s SimplyChecking account has a $50 minimum opening deposit but no minimum balance requirements or monthly service fee. 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 this 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.
SimplyPlus+ Checking
If you want an interest-bearing checking account, Flagstar’s SimplyPlus+ Checking pays between 0.01%-0.02% APY, depending on balance. 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, money market and CD accounts — or if the primary account owner is 50 years or older.
Additionally, account holders can receive 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. Also, preferred CD rates are available for account holders with at least $5,000 in combined Flagstar deposit account balances. If you happen to use an out-of-network ATM, the bank will waive its $2.50 transaction fee twice per statement cycle. Complimentary paper statements are also included with this account.
SimplyMax Checking
Flagstar’s SimplyMax Checking requires a $50 minimum opening deposit and features the bank’s top rate of checking interest — up to 0.04% APY, depending on balance. The account not only has the same rate reductions for loans and lines of credit and the preferred CD rates that are included with SimplyPlus+ Checking but also includes unlimited $2.50 Flagstar fee waivers when you use an out-of-network ATM. Additionally, account holders will receive one free box of custom checks per year. The account does include a $25 monthly service charge. However, it can be waived with a $5,000 average daily collected balance or a $25,000 average daily collected balance across checking, savings, money market and CD accounts.
SimplyOne
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. And 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
Flagstar Bank offers five savings account options. Here are the details for each account.
SimplySavings
The SimplySavings account pays 0.03% 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. Account holder benefits include 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. 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.
High-Yield Savings
Flagstar’s High-Yield Savings account fully benefits the most serious savers and offers 0.02%-0.35% APY, depending on balance. The highest APY is reserved for savers of $1 million or more. 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. Preferred CD rates are available when you have at least $5,000 in combined balances across checking, savings and money market accounts. No minimum opening deposit applies if you open the account in a branch, whereas a $1 minimum opening deposit applies for opening the account online.
Foundation Savings Plus
Foundation Savings Plus pays 0.01% or 0.15% APY depending on 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 bank’s SimplySavings account, this account includes the rate reductions on loans and lines of credit as well as preferred CD rates. Like the other savings options, no minimum opening deposit applies if you open the account in a branch.
SimplyKids Savings
The SimplyKids Savings account is designed for young people up to 22 years of age, so there’s no minimum monthly balance or monthly service fee. You can open the account with $0 in a branch or $1 if you choose to open the account online, and a higher interest rate applies on the first $500 deposited. Like the other savings options, the account is eligible for preferred CD rates, and it includes a free Visa debit card for account holders who are age 13 and older.
Health Savings Account
A health savings account allows for a convenient, tax-advantaged way of paying medical expenses, and unused funds roll over every year. Contributions are tax-free, and funds can be withdrawn for qualified medical expenses at any time. A $5 annual administration fee applies to this account.
Money Market Accounts
Flagstar offers one money market account. Here’s what you need to know.
SimplyMoneyMarket Account
The SimplyMoneyMarket account has tiered interest rates ranging from 0.01%-0.04% APY depending on balance. While the account doesn’t have a minimum opening deposit, it does have a $10 monthly service fee that can be waived by opening a Flagstar personal checking account or maintaining a $5,000 average daily balance. The account is eligible for a 0.50% rate reduction on home equity lines of credit and a 0.25% rate reduction on personal loans, lines of credit and home equity loans when payments are made automatically from this account. Plus, with $5,000 in combined balances across Flagstar checking, savings, money markets and CDs, account holders are eligible for preferred CD rates.
CD Rates
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. Preferred CD rates are available for account holders who have $5,000 in combined balances across checking, savings, money market and CD accounts. Here’s a look at the terms and rates offered:
- 30 days to 364 days: 0.05% APY
- 12 months to 47 months: 0.10% APY
- 48 months to 59 months: 0.20% APY
- 60 to 71 months: 0.30% APY
- 72 to 83 months: 0.35% APY
- 84-120 months: 0.40% APY
- 13-month CD special: 0.25% APY
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.
Minimum Opening Deposits
The majority of Flagstar’s checking accounts require a $50 minimum opening deposit, which is affordable. However, the bank’s basic, no-frills SimplyOne account requires only $1 to open. Additionally, savings accounts do not require a minimum opening deposit if you open one at a branch and only a $1 minimum opening deposit if you open one online, which makes it much easier to open a savings account at the same time you open a checking account. The SimplyMoneyMarket account does not require a minimum opening deposit, according to a Flagstar bank representative. CD accounts do require a minimum opening deposit of $500. However, many banks require minimum opening deposits of $1,000 or more to open a CD.
Monthly Fees
Flagstar Bank does charge monthly service fees on some of its accounts. The SimplyChecking account does not have a monthly service fee, but the other checking options have fees ranging from $5 to $25. Flagstar’s Health Savings and SimplyKids Savings accounts do not have monthly service fees, and the other savings options have fees ranging from $3 to $35. For the most part, the fees are easily waived if you open an additional account or maintain an average daily balance or a combined balance across all your Flagstar accounts.
Customer Service
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-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 click on the Live Chat button to be connected with a customer service representative.
You can make deposits at a Flagstar Bank branch or Flagstar-owned ATM, via mobile deposit, or you can mail deposits to the following address:
Flagstar Bank
301 West Michigan Avenue, 4-501
Jackson, MI 49201
Rates
Flagstar Bank has competitive rates as compared to many other banks. For example, its savings account APYs range from 0.01% to 0.35% APY, with a 0.15% APY for balances of at least $10,000 with its Foundation Savings Plus account. And the bank’s certificate of deposit rates range from 0.05% APY to 0.40% APY, with the highest APY for CDs with terms of seven to 10 years.
Editor’s Favorite
Avoiding a monthly service fee on your savings account is as simple as opening a checking account. Additionally, account holders can qualify for a rate reduction of 0.50% on home equity lines of credit and 0.25% on home equity loans, personal loans and personal lines of credit just by making automatic payments from a Flagstar checking or savings account.
Flagstar Bank vs. Competitors
Here’s how Flagstar Bank stacks up to some of its competitors.
Flagstar Bank vs. KeyBank
KeyBank has a much larger branch network than Flagstar Bank — 1,000 branches versus Flagstar’s 150, 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.
Flagstar Bank vs. Citizens Bank
Citizens Bank is more convenient to bank with in person because it also has a much larger branch network than Flagstar Bank — 1,000 branches versus Flagstar’s 150 branches. However, Flagstar Bank’s website has an online chat feature for connecting to a customer service representative, while the Citizens Bank website does not support that feature at this time.
Flagstar Bank vs. 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. However, Flagstar Bank offers a much more affordable $500 minimum opening deposit for its CDs and offers term lengths 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 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 is located in five states — Michigan, Indiana, California, Wisconsin and Ohio — it only has 150 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 Bank owned by Wells Fargo?
- No. In 2018, Flagstar Bank acquired 52 branches from Wells Fargo. The branches are located in the Midwest.
- Who owns Flagstar Bank?
- Flagstar Bank is a subsidiary of Flagstar Bancorp, which is a savings and loan holding company.
- Is Flagstar a mortgage lender?
- Yes, Flagstar is a mortgage lender.
- Is Flagstar Bank FDIC insured?
- Yes. FDIC insurance covers individual customer accounts at Flagstar Bank up to $250,000.
Karen Doyle contributed to the reporting for this article.
Rates are subject to change. Information on accounts is accurate as of Apr. 26, 2022.
Editorial Note: This content is not provided by Flagstar Bank. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Flagstar Bank.
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