Who Is Flagstar Bank?
Our Flagstar Bank review found that they were started in 1987 and that they have over $9.8 billion in assets. This bank is headquartered in Troy, Michigan, and is one of the largest banks in the Midwest United States. Flagstar provides a variety of accounts from credit cards and mortgages to savings and checking accounts, as well as IRAs. Flagstar has 107 locations in Michigan, Indiana, and Georgia.
Our Flagstar Bank review notes that Flagstar is rated one of the nation’s top 10 banks for savings! They are focused on helping people save money, and earn large interest rates. Here are some other reasons Flagstar bank is one of the top banks.
- In January of 2015, interest rates for savings accounts were 1.10%. Flagstar is offering this rate for 12 months to new customers. This introductory interest rate is 18 times higher than the national average!
- To take advantage of the high interest rates, you will need to schedule an automatic deposit to the bank and agree to the 12 month term.
- All their savings accounts offer access to online and mobile banking, as well as access to over 55,000 ATMs.
- Flagstar bank offers a savings account for kids with no monthly service fee or minimum balance.
- The minimum deposit to open one of their three checking accounts is only $50.
- The website is easy to use, and the entire sign-up process for a new account only takes a few minutes. To open an online savings account, you will need a minimum of $1. The $1 fee is waived for anyone that chooses to open the account in a branch location.
- Flagstar Bank offers three different savings accounts and checking accounts. This can help you find the best account for your needs.
Flagstar Bank provides multiple savings account options, which is ideal for anyone planning to increase their savings account balance. Move from a basic savings account to a Plus or Max savings account where you can earn higher interest rates.
Unfortunately this wouldn’t be a proper Flagstar Bank Review without a list of drawbacks. For example customer service is lacking with Flagstar Bank. The average wait time on the phone was only a few seconds, but it took approximately three minutes before our team could get in touch with agents for savings account questions.
- In order to avoid checking account fees, you must keep at least $1,000 or $5,000 balance in their top two accounts. On the plus side, you can also avoid the fees by combining the totals in your money market, CDs or other accounts. The balance needed to keep is considerably higher, but it does provide another way to avoid fees.
- Flagstar bank only offers terms from 180 days to 60 months.
- The minimum opening balance for a CD is $500, which is also the minimum balance required to earn interest on the account.
- While the initial interest rate is attractive, after 12 months, the interest rate can easily decrease.
- If you do not maintain a balance of at least $300, you will be charged with a $3 fee each month. You can waive the fee by linking the account to your checking account with Flagstar Bank.
- Flagstar doesn’t have locations outside of Michigan, Indiana, and Georgia, which could be a problem for ATM users. If you are looking strictly for an online bank, Flagstar can offer everything you need.
The interest rates for the first year are exceptional, but once that introductory period is over, the interest is nothing too great. The checking accounts do have large fees if you don’t keep the minimum balance.
Should I Bank With Flagstar Bank?
In conclusion of our comprehensive Flagstar Bank review we can say that they provide some rather high interest rates, which is perfect for anyone planning to open an online savings account and stash the cash for a year. If you want to move money around, you will find Flagstar is harder to work with. Just remember that once that 12 month period is over, you will most likely start receiving considerably lower interest rates – depending on how much money you have investied in their accounts. But, Flagstar Bank is still one of the best online banks for savers.
Deposits and/or Bounce Protection Payments:
301 West Michigan Avenue, MS 4-313
Jackson, MI 49201
Customer Service Number