Looking for an MMA that has a good rate? Flagstar Direct offers 1.60% (edit: now only 0.60% APY) on money market accounts and can be opened with as little as $1.00 with no minimum balance required. They offer 24 hour telephone banking as well as 24/7 mobile access to your accounts.
Flagstar Direct doesn’t just do MMAs. They also offer Express Internet checking accounts and 2 options of CDS. The checking account has a rate of .50% APY. There are no service fees, no minimum balance, free checks for life, can be opening with as little as $1.00, and are FDIC-insured. For a low-risk investment, Flagstar Direct offers a 12-month CD at 1.60% 0.50% APY and a 36-month CD at 2.60% 0.75% APY. Each CD can be opened with a minimum deposit of $500.00 and are FDIC-insured.
Opening an account may be done online, via phone, or even mail. Online can take as little as 10 minutes, if you have everything you need. Have your driver’s license and your current checking or savings account information ready when you sign up so they can transfer funds to open your Flagstar account. The process of opening an account is pretty detailed, but if you run out of time you can always save your information and finish the application later. If it’s a joint account, make sure you have all the information for both parties. They do check consumer reports to determine whether approval of opening an account.
Flagstar Direct’s website is pretty easily navigated but not overly informative. Their banking is versatile and reportedly they have really great customer service. They also offer a variety of rewards for account holders and even allow you to combine points with family members and friends. They are backed by Flagstar Bank in Michigan. Bankrate.com gave Flagstar a rating of 1 star due to high overhead and below average net interest margin and return on equity. Flagstar is solid on level non-interest income and asset growth value is normal. Bauer Financial gave Flagstar 3 stars.
