Flagstar Bank SimplyChecking Account 2024 Review
Flagstar Bank's SimplyChecking Account is a basic bank account for people who want to avoid a monthly fee. You'll have multiple ways to access your money online and on the go.
The SimplyChecking account is designed to help you cover all the bases with your money, whether paying bills or withdrawing cash at ATMs. No monthly maintenance fees and a low opening deposit requirement add to its appeal.
This checking account may be a good choice for people who:
- Prefer a community bank to a big bank or an online-only bank
- Need a simple checking option with minimal fees
- Have at least $50 to open an account
- Live in Flagstar Bank's service area
Flagstar serves customers in Arizona, California, Florida, Indiana, Michigan, New Jersey, New York, Ohio and Wisconsin. You can enter your zip code on the Flagstar website to see which banking products are available in your area.
Flagstar Bank SimplyChecking Account Pros & Cons
Compared to Other Checking Accounts
SoFi Checking and Savings
SoFi combines checking and savings into a single account with no monthly maintenance fee. Eligible debit card transactions can earn cash rewards, and you'll get a competitive rate on the money you save. You can withdraw cash fee-free at more than 55,000 ATMs and get paid up to two days early with an eligible direct deposit.
Read our full SoFi checking account review
Current Account
Current is a financial app that allows you to spend, save, and build credit with everyday purchases. There are no credit checks required to open an account and no annual fees or minimum balance requirements. You'll earn a competitive APY on savings balances and you can even start trading cryptocurrency with as little as $1.
LendingClub Rewards Checking
LendingClub's Rewards Checking account offers unlimited 1% cash back on eligible debit card purchases with no monthly fee. You'll pay no overdraft fees and enjoy unlimited ATM fee rebates. This account also earns interest, though the APY isn't as high as what you might get with a high-yield savings account.
Read our full LendingClub Rewards Checking review
Chime Checking
Chime offers a free online checking account with no minimum balance requirements or overdraft fees. You can withdraw cash at more than 60,000 ATMs and deposit cash at over 8,500 Walgreens locations nationwide. You can also get paid up to two days early with no added fee when you enroll in direct deposit.
Read our full Chime Checking review
Interest Rates
You won't earn interest with the SimplyChecking account. You can, however, get some interest-related benefits, including:
- 0.25% rate reduction on Flagstar home equity lines of credit when you use your account to pay
- 0.25% rate reduction when you use your account to pay a Flagstar home equity loan, personal loan or mortgage
- Preferred CD rates when you maintain a $5,000 combined minimum balance across your Flagstar deposit accounts
If you want to earn interest, you've got a couple of other options. Flagstar offers two interest checking accounts--SimplyPlus+ and SimplyMax.
However, the rates are typical of what you'd expect from a traditional bank. So, you won't earn a lot of interest with either one.
If you're interested in getting a great rate for your money, you might consider Flagstar Bank's high-yield savings account instead. The rate is similar to what you'll get with top online savings accounts, though there is a higher monthly service fee to watch out for.
Rewards
The SimplyChecking account is not a rewards checking account. That means you won't earn any cash back or points when you use your debit card or complete other transactions.
Earning rewards is a nice added perk that some banks offer. If you're considering a rewards checking account, you can start with online banks and then check out brick-and-mortar banking options.
Remember to look at:
- How you earn rewards
- The amount of rewards you can earn
- What you can use those rewards for
- Whether they expire
Keep in mind that if you're paying a monthly fee for a checking account, that can take away from any rewards you earn.
Also, remember that ongoing rewards are different from new account bonuses. Some banks may offer a cash bonus when you open a new account and meet other requirements.
Fees
Flagstar doesn't charge a monthly maintenance fee for SimplyChecking accounts. But there are a few other fees to know.
Other Service Fees - Flagstar Bank SimplyChecking
| Type | Fee |
|---|---|
| Monthly maintenance fee | $0 |
| Out-of-network ATM fee | $2.50 |
| Money order | $5 |
| Cashier's checks | $7 |
| Early account closure fee | $15 |
| Stop payment | $36 |
| Insufficient funds fee | $0 |
| Overdraft fee | $10 |
| Incoming domestic wire transfer fee | $10 |
| Incoming international wire transfer fee | $15 |
| Outgoing domestic wire transfer fee | $30 |
| Outgoing international wire transfer fee | $45 |
| Foreign transaction fee | 3% |
These fees aren't unusual, and they're on par with what you'll find at other brick-and-mortar banks. The ATM fee is avoidable if you're using in-network machines to withdraw cash.
If you go out-of-network, Flagstar charges a $2.50 fee per transaction. The ATM's owner can also charge you a fee, so it pays to know where you can locate a fee-free ATM.
ATM Access
You can use your debit card to withdraw cash fee-free at more than 56,000 Allpoint and Presto ATMs. Flagstar doesn't offer foreign ATM fee rebates, which is something you can find offered with certain online checking accounts.
If you want to deposit cash to your checking account at an ATM, you can do that. Flagstar recommends using their machines to ensure a smooth deposit process.
Account Access
You'll have multiple ways to manage your SimplyChecking account, including:
- Online banking
- Mobile banking
- Phone banking
- Branch banking
- ATMs
You can order checks or spend with your debit card. Online bill payment services are available and you can deposit checks via remote deposit capture.
You can choose a domestic or international wire transfer if you need to send money quickly and securely. You can also receive funds the same way. Fees apply to incoming and outgoing wire transfers.
And, of course, you can visit a Flagstar Bank branch if you want to deposit cash or get account help in person.
Flagstar has approximately 400 branches, primarily in the Northeast and Midwest. You can also get help by phone or live chat if you're not able to get to a branch near you.
FDIC Insurance
FDIC insurance protects your deposits if your bank fails. Bank failures are extremely rare, but they can happen.
If your bank fails, the FDIC steps in to make sure you get your money back. However, there's a limit on the amount of deposits that are protected.
The current FDIC limit is $250,000 per depositor, per account ownership type, per financial institution. Flagstar Bank is a member FDIC bank, so your deposits are secure, up to the allowed limit.
What You Need to Open
The Flagstar Bank website encourages visitors to call to apply for a new SimplyChecking account. You can also visit a branch to get your new account set up.
Here's what you'll need to open a Flagstar Bank account:
- Valid, government-issued ID
- Social Security number
- Date of birth
- Mailing address
- Phone number
- Minimum opening deposit
Once again, you'll need at least $50 to open an account here. And you'll need to be 18 or older to open an account in your name.
There's no hard credit check required to open an account with Flagstar. However, the bank may look at your ChexSystems report to review your banking history.
The requirements are the same for other Flagstar Bank accounts, including savings accounts and CDs. The minimum opening deposit requirements for each one vary.
Opening a Flagstar CD account or savings account is something to consider if you'd like to earn more interest on your money. You can link your savings account to your SimplyChecking account for convenient access.
FAQs
Is my money safe at Flagstar Bank?
Flagstar Bank deposits are covered by FDIC insurance, which protects you against bank failures. Additionally, Flagstar takes steps to secure customers' personal and financial information to minimize the risk of fraud. You can add an extra layer of security by choosing a secure password for online and mobile banking.
Does Flagstar offer overdraft protection?
Flagstar Bank has multiple options for overdraft protection. You'll need to opt in to be protected; otherwise, transactions resulting in a negative checking account balance may be denied.
Is an online checking account better?
Online banks can offer checking accounts with lots of great features. For example, you might earn cash-back rewards or interest on balances while paying no monthly fee. Comparing online and traditional bank checking accounts can help you find the best option for managing your money.
