Updated: Feb 11, 2024

Flagstar Bank SimplySavings Account 2024 Review

Flagstar Bank's SimplySavings Account is a basic savings option for people who want to earn a little interest and don't mind paying a monthly fee. A free debit card is included for convenient acces...
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Flagstar Bank's SimplySavings Account is a basic savings option for people who want to earn a little interest and don't mind paying a monthly fee. A free debit card is included for convenient access to funds. 

Our Verdict

Flagstar Bank is similar to other traditional banks, in terms of what you get with a SimplySavings Account. You'll earn interest on balances and have multiple ways to access your money. 

Saving with Flagstar Bank might appeal to people who:

  • Prefer a smaller, community bank to a big bank
  • Would like debit card and ATM access to savings
  • Don't mind paying a monthly fee
  • Live in an area that Flagstar Bank serves

That last point is important. This is not a nationally available savings account; you must live in Arizona, California, Florida, Indiana, Michigan, New Jersey, New York, Ohio or Wisconsin to bank with Flagstar. 

The minimum deposit to open SimplySavings is $1. You can open an account over the phone or at your nearest Flagstar branch.

Flagstar Bank SimplySavings Account Account Pros & Cons

  • Free ATM card available
  • Expanded surcharge-free ATM access through Allpoint and Presto ATM network (56,000+ locations)
  • No minimum opening deposit (in-branch);$1 online
  • Very low interest rate
  • $3 monthly fee (can be waived)

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Compared to Other Online Savings Accounts

Ally High Yield Savings Account

Ally consistently rates as one of the best online savings accounts thanks to its lack of fees and competitive rates. There's no minimum deposit requirement to get started and you can grow your savings with automatic round-ups. Savings buckets let you fund multiple financial goals inside the same account. 

Read our review

SoFi Checking and Savings Account

SoFi combines checking and savings in one place for added convenience. You can earn cash back on the money you spend and an impressive rate on the money you save. Plus, you get access to other benefits like getting paid up to two days early with direct deposit. 

Read our review

Bread Savings High Yield Savings Account 

Bread Savings offers a high-yield savings account with rates that are typical of online banks. The minimum deposit requirement is a bit higher, at $100, but you might consider saving here if you'd like to get one of the highest rates possible. There's no monthly fee to save with Bread. 

Read our review

Flagstar Bank High Yield Savings Account

Aside from SimplySavings, Flagstar also offers a high-yield savings option. The APY for this account is on par with what you'll find at some of the best online banks. There's a $35 monthly maintenance fee, which is waived if you have a Flagstar personal checking account or maintain a $50,000 average daily balance. 

Interest Rates

Traditional banks often lag behind online banks when it comes to savings account rates. That is to say that you're more likely to earn less interest when you save with a brick-and-mortar bank. 

While Flagstar does pay interest with SimplySavings, the APY won't knock your socks off. The rate is about as low as savings account rates get. 

If getting the highest rate possible is the goal, then you might consider Flagstar's high-yield account or an entirely different bank instead. 

Here are a few things to remember as you shop around for the best savings account. 

  • Banks don't apply rates the same way; some tier them while some pay the same APY across all balances. 
  • Online banks usually have the highest rates but they may offer fewer ways to access your savings. 
  • Savings account rates may be capped, meaning once your balance reaches a certain limit you'll earn a lower APY. 

Interest rates are only part of the picture. It's also a good idea to look at fees when choosing a new savings account. 


Traditional banks charge fees because that's how they make money. If you're considering saving with Flagstar Bank it helps to know what you might pay.

Other Service Fees - Flagstar Bank SimplySavings

Type Fee
Monthly maintenance fee $3
Non-Flagstar ATM fee $2.5
Cashier's checks $8
Early account closure fee $30
Stop payment $36
Insufficient funds fee $0
Overdraft fee $10
Incoming domestic wire transfer fee $15
Incoming international wire transfer fee $15
Outgoing domestic wire transfer fee $30
Outgoing international wire transfer fee $50

The SimplySavings account does have a monthly fee of $3. You can waive it by:

  • Maintain an average daily balance of $300 OR
  • Linking it to a Flagstar personal checking account OR
  • Being 18 or under

Paying a monthly fee for a savings account usually doesn't make sense since you're essentially handing back some of the interest you've earned. But it may not be a dealbreaker for people who prefer brick-and-mortar banking. 

ATM Access

Flagstar offers a free debit card with SimplySavings accounts. You can use your card to make purchases or withdraw cash at eligible ATMs. 

Your card is good for fee-free withdrawals at more than 56,000 Allpoint and Presto ATMs. That's great if you need access to cash in a pinch. 

However, you'll pay a fee if you use an out-of-network ATM. And regularly dipping into your savings can defeat the purpose of setting that money aside in the first place. 

You can deposit cash to your savings account at an ATM using your debit card. Flagstar recommends using their machines for that to ensure a smooth deposit process. 

Account Management

Flagstar offers multiple ways to manage your accounts, including:

  • Online banking
  • Mobile banking
  • Branch banking
  • Phone banking

Online and mobile banking include the features you'd expect. For instance, you can check your balances, transfer funds between linked accounts and review past statements. You can also deposit checks with mobile check deposit

Wire transfer is another option for making deposits, though you'll pay a fee for those. There's no fee to pay bills and no fee to set up direct deposit to any of your Flagstar accounts.

You can link external accounts to make ACH transfers to and from your savings account. Funds availability guidelines determine how soon you'll be able to withdraw money you add to your accounts. 

 If you need help with your accounts, customer support is available by phone or via chat. 

FDIC Insurance

Flagstar Bank is a member-FDIC institution. That means your deposits are covered by FDIC insurance

FDIC insurance serves an important purpose: it protects your deposit in case of a bank failure. 

Bank failures are rare but it's good to know that you won't lose all of your money should the worst happen. The FDIC protects deposits up to $250,000 per account owner. 

Flagstar cautions customers that deposits over the FDIC limit won't be protected. If you plan to keep a lot of money in savings, you may need to open accounts at multiple banks to ensure that all of your funds are covered. 

What to Look for in a Savings Account

When you're ready to open a savings account, it pays to do some research first. Knowing what to look for can help you find the right account for your needs. 

Here are some of the most important  things to consider as you weigh different savings accounts. 

  • Interest rate and APY
  • How rates are applied across different balances
  • Minimum opening deposit requirements
  • Minimum balance requirements to earn interest or avoid a fee
  • Monthly service fees, if any
  • Options for waiving monthly fees
  • Other fees, such as excess withdrawal fees or wire transfer fees
  • Online and mobile banking features
  • ATM or debit card access
  • Branch banking access (if you'd prefer a traditional bank)
  • Savings features and money management tools
  • Daily, weekly and monthly deposit and withdrawal limits
  • Overdraft protection, if you're linking savings to a checking account
  • Customer service access (i.e., by phone, live chat, etc.)
  • Brand reputation
  • Overall user experience

You may also want to look at the bank's full range of accounts and products if you need more than just a savings account. Flagstar, for instance, offers checking accounts and CD accounts to help you manage different financial needs. 

Remember to compare savings accounts at online banks and traditional banks to see how they measure up. And consider what kind of access you'll need to your savings when deciding whether to go with an online savings option. 

Frequently Asked Questions

Is Flagstar Bank a real bank?

Flagstar Bank is a legitimate bank that operates as an offshoot of Flagstar Bancorp. It's one of the largest savings banks in the U.S. and is a member-FDIC institution. Flagstar offers banking services and products in a limited number of states. 

Is my money safe at Flagstar Bank?

Deposits at Flagstar Bank are covered by FDIC insurance and are insured up to $250,000 per depositor, per account ownership type. Flagstar implements numerous security measures to protect customer accounts from hackers or fraud. 

Is an online savings account better?

Online savings accounts can offer some benefits that you won't always get from a traditional bank. You can get a great rate on savings and pay fewer fees. The downside, however, is that you don't have access to branch banking if you need it. That's an advantage that traditional banks can offer to savers.