Flagstar Bank, headquartered in Troy, Michigan, is the 74th largest bank in the US by asset size, with just over $31 billion in total assets.

They have a robust offering of deposit accounts, however, they are only available to consumers in select regions. You’ll have to enter in your zip code in the beginning of your session to navigate through their products and rates.

Within their suite of deposit products they offer both fixed-rate certificates of deposit and variable-rate accounts such as money market accounts, savings accounts and checking accounts.

Their high yield savings account doesn’t offer a competitive rate at the time of this writing and comes with a $35 monthly service fee if you don’t maintain a balance of $50k or more.

Their CDs (certificates of deposit) feature the most competitive yields out of all of Flagstar Bank’s deposit accounts.

In our review below, we will focus on the CDs offered by Flagstar Bank. They currently offer customizable CD terms ranging from 30 days to 10 years. They also have one promotional CD which carries the best APY (annual percentage yield).

Flagstar Bank CD Rates + Account Details

Flagstar Bank is a member of the FDIC. Consumer deposits are federally insured up to $250,000 or $500,000 for joint accounts.

Flagstar Bank CDs come with a minimum deposit requirement of $500. If you plan on depositing more than $110,000 into a CD you will need to visit a local branch. You can locate one here.

CD Rates

To put these offers in perspective, the current national average for a 12 month CD and a 60 month CD sit at 1.21% APY and 1.28% APY, respectively, according to FDIC data.

That said, there are a number of online banks and credit unions with nationwide acceptance offering CDs with rates above 4.60% for both respective terms.

Compounding and Crediting Interest

Unlike many bank CDs which feature daily compounding interest which gets credited back to the account monthly, Flagstar Bank both compounds rates monthly and also credits interest payments on a monthly basis.

Grace Period and Early Withdrawal Fees

Flagstar Bank has a standard 10 calendar-day grace period in which you can add or withdraw funds from your certificate of deposit or close it out entirely without penalty. If nothing is done during this time, the funds will automatically renew into the same deposit term with the going APY at that time.

If you need access to your funds outside of the grace period, Flagstar Bank will impose an early withdrawal penalty.

Early withdrawal penalties are determined by the term length of your CD. Early withdrawal penalties are as follows:

Be sure to set up your own reminders to alert you when your grace period starts. Flagstar Bank will also send out notifications to let you know your CD will be maturing soon.

How to Open and Fund the CD

There are 2 ways to open a Flagstar Bank CD.

1. Give them a call at 844-645-0835
2. Stop by a local branch.

Flagstar does not provide an option to open a CD online at this time.

Once you’ve connected with a Flagstar representative either by phone or in-person you’ll need to have the following personal information to proceed with the CD:

1. Home Address
2. Phone Number
3. Email
4. Social Security Number
5. Driver’s License or State ID

Once you’ve opened the CD, you’ll need to fund it. This can be done by transferring funds from another bank account or with a physical check. If transferring funds from your current bank or credit union you’ll need to the following:

1. You current bank or credit union’s routing number
2. Your bank account number