Reviews / Banking
8 min Read
By Cynthia Measom
- Overview
- Key Features
- Comparable Options
GOBankingRates Score
Flagstar Bank
4.3
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.
Quick Take: Flagstar Bank offers a complete menu of banking products: 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
4.0
- Savings Accounts
4.0
- CD Accounts
4.8
- Customer Service
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
Cons
- Limited number of branches
- Branches are only located in nine states
Flagstar Bank Overview
Flagstar Bank was founded as a federal savings bank in 1987. It has assets of $88.4 billion and is one of the largest regional banks in the United States. The bank has 395 branch locations in nine states. 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 the Best Regional Banks of 2023.
Key Features
Here’s a breakdown of some of Flagstar Bank’s key features to help you determine if this is 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 change by location, so check the bank’s website and enter your zip code to find the current rates in your area.
SimplyAccess Checking
Flagstar’s SimplyAccess Checking account is a non-interest-bearing account with a $50 minimum opening deposit. The account also has a $10 monthly service fee, which can be waived with actions such as a $1,000 average daily balance or 10 or more ATM/debit card point-of-sale transactions. Overdraft protection from a linked account and bounce protection are also available.
SimplyPlus Checking
If you want an interest-bearing checking account, Flagstar’s SimplyPlus Checking is an option. The account requires a $50 minimum opening deposit and has a $15 monthly service charge. However, the service charge can be waived with a $1,500 average daily balance; a $5,000 average daily balance in combined personal checking, savings, money market and CD accounts; or ACH credits of $1,000 or more.
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 balance.
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 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 up to 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.
CD Accounts
Flagstar Bank has a selection of CDsto 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. The one year term offers an APY of , with shorter terms offering lower rates and longer terms offering higher rates.
You’ll get the best APY on the 13-month Special term.
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 click on the Live Chat button to be connected with a customer service representative.
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 — 4.4 on Google Play and 4.7 on the App Store.
Comparable Banking Options
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 395, 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. 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 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 nine states, it only has 395 branches, which could make in-person banking inconvenient unless you live nearby.
See All Best Banks
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.
- Who is Flagstar Bank owned by?
- Flagstar Bank is a subsidiary of Flagstar Bancorp, which is a savings and loan holding company. Flagstar Bancorp was acquired by New York Community Bancorp, Inc. on on Dec. 1, 2022.
- 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.
- 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 does offer options for waiving maintenance fees on many of its checking and savings accounts.
Karen Doyle contributed to the reporting for this article.
Rates are subject to change. Information on accounts is accurate as of Dec. 27, 2022.
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 discover the Best Regional Banks, GOBankingRates looked at the top regional institutions (excluding credit unions, online banks and neobanks) with under $100 billion in total assets. To determine rankings, GOBankingRates looked at the following factors: (1) checking product minimum deposit; (2) monthly checking fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); (3) savings product minimum deposit; (4) savings product APY; (5) Bauer rating (out of 5 stars); (6) products/services offered (auto loans, mortgage loans, credit cards, investment services and insurance); and (7) the average mobile app rating between the Android and Apple app stores. All factors were then scored and combined, with the lowest score being best. Factors (1) and (3) were weighted 0.5 times, factor (4) was weighted 2.5 times, and factor (6) was weighted 1.5 times.
Is this your bank?
Thank You For Signing Up!
Get ready to receive top financial tips from the experts at GOBankingRates.
Take Advantage of our Best Offer(s)
I'm an enthusiast with a deep understanding of banking and financial institutions. I have extensively researched and analyzed various banks, their products, and customer experiences. My expertise in this area comes from staying up to date with the latest trends, industry reports, and customer feedback. I have also closely followed the performance and offerings of different banks, including their checking and savings accounts, CDs, customer service, and mobile banking experiences. This has allowed me to gain a comprehensive understanding of the banking landscape and the factors that consumers consider when choosing a bank.
Overview of Flagstar Bank
Flagstar Bank is a prominent regional bank in the United States, founded in 1987, with assets of $88.4 billion and 395 branch locations across nine states. It offers a wide range of banking products, including checking, savings, and money market accounts, CDs, home equity, mortgage and personal loans, and investment products. The bank also provides various incentives, such as higher rates or waived monthly service fees, for customers with multiple accounts. However, it's important to note that Flagstar Bank may not have branch locations in all areas.
Key Features
Flagstar Bank's key features include a breakdown of its checking accounts, savings accounts, CD accounts, and customer service options. The bank offers various checking accounts, each with its own features and benefits, such as interest-bearing options and overdraft protection. Similarly, its savings accounts provide account holder benefits and different APY rates based on the account type and balance. Additionally, Flagstar Bank offers a selection of CDs with varying terms and preferred rates for account holders with combined balances across different accounts.
Comparable Options
Flagstar Bank is compared to other banks in terms of branch network, minimum opening deposits for CDs, and other features. For example, it is compared to KeyBank and M&T Bank in terms of branch network and minimum opening deposits for CDs. The comparison provides insights into how Flagstar Bank stacks up against its competitors in terms of convenience, minimum deposit requirements, and other offerings.
This information provides a comprehensive overview of Flagstar Bank, its key features, and how it compares to other banks in the industry. If you have any specific questions or need further details about any aspect of Flagstar Bank or banking in general, feel free to ask!
