Flagstar Bank Performance Savings Account 2025 Review
Flagstar Performance Savings pays savers a competitive APY when they meet minimum balance requirements. This account includes a debit card, something you don't always find with online savings accounts.
The Flagstar Performance Savings account is a high-yield savings account featuring an exceptional APY. You only need $1 to open the account but there's a $25,000 minimum balance requirement to earn the advertised rate.
Saving with Flagstar could make sense for people who:
- Tend to keep a larger balance in savings
- Would like to earn a competitive rate on the money they save
- Are looking for a savings account that includes a debit card for convenient withdrawals
- Already have a checking account with Flagstar, or plan to open one
In addition to checking and savings accounts, Flagstar also offers high-yield CDs if you're looking for more ways to grow your money. The minimum deposit for CD accounts is $500.
Flagstar Performance Savings Account Pros & Cons
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Compared to Other Online Savings Accounts
TIMBR High Yield Savings Account
TIMBR, a division of Bridgewater Bank, offers a high-yield savings account that anyone with a U.S. checking account can open. You'll need $1,000 to get started and you can earn an excellent APY that's well above the national average savings account rate. It's easy to open your account online and there are no monthly fees or service fees to worry about.
Read our full editorial review of the TIMBR High Yield Savings account
Jenius Bank High Yield Savings Account
Jenius Bank High Yield Savings earns a slightly higher APY than the Flagstar Performance Savings account. There are no opening deposit or minimum balance requirements, and the advertised rate applies across all balance tiers. This account has no monthly maintenance fees and you'll have access to human support 24/7.
Read our full editorial review of the Jenius Bank High Yield Savings account
Bank5 Connect Jumbo Savings Account
Bank5 Connect Jumbo Savings is similar to Flagstar Performance Savings in that you can earn a stellar rate if you maintain a $25,000 minimum balance. There are no monthly fees and you can link your Jumbo Savings account to a Bank5 Connect High-Interest Checking account for overdraft protection. Your deposits are 100% insured, even above the current FDIC coverage limit.
Read our full editorial review of the Bank5 Connect Jumbo Savings account
Valley Direct High Yield Savings Account
Valley Direct High Yield Savings earns an outstanding rate and you only need $1 to open this account. There are no monthly maintenance fees, which is a plus, and it's easy to open your account online. You can also build your savings plan with high-yield CDs from Valley Direct if you'd like to lock in guaranteed rates.
Read our full editorial review of the Valley Direct High Yield Savings account
Interest Rates
Flagstar Performance Savings uses a tiered approach to apply interest. Once your balance reaches $25,000, you'll earn the highest advertised rate which is better than what traditional banks pay.
Balances below $25,000 still earn interest but the APY is much lower. That's important to factor in when choosing a savings account.
If you don't keep a lot in savings or you're just getting started with saving, this account won't do much for you. You'd likely benefit more from opening another high-yield savings account that pays a great rate on balances of $0.01 or more.
Here are a few helpful questions to ask when comparing savings account rates:
- What's the minimum balance to earn interest?
- Is interest capped once you reach a certain balance threshold?
- Do you have to meet any other requirements, like setting up direct deposit or linking to a checking account at the same bank, to earn interest?
These kinds of questions can help you figure out if a savings account truly fits your lifestyle. It's easy to be lured in by an attractive rate but it's always a good idea to check the fine print.
Fees
Bank fees can take away from some of the interest you earn with a high-yield savings account. The best savings accounts have minimal fees (or none at all).
Here's what you'll pay for the Flagstar Performance Savings account.
Other Service Fees - Flagstar Performance Savings Account
| Type | Fee |
|---|---|
| Monthly maintenance fee | $15.00 |
| Stop payment | $36.00 |
| Foreign ATM fee | $3 |
| Non-sufficient funds fee | $0.00 |
| Overdraft charge | $10.00 |
| Incoming domestic wire transfer | $15.00 |
| Outgoing domestic wire transfer | $15 |
| Outgoing foreign wire transfer | $50 |
| Foreign transaction fee | 3% |
| Replacement debit card | $5 |
| Expedited debit card delivery | $75 |
The main fee to be aware of is the monthly maintenance fee.
You'll pay $15 for the Flagstar Performance Savings account unless you:
- Maintain a $10,000 average daily balance OR
- Open a Flagstar personal checking account
If you're interested in the checking account route, Flagstar Ready Checking (formerly Simply Checking) has no minimum balance requirement and no monthly fee when you enroll in e-statements. You'll need $50 to open this account.
Otherwise, you'll need to be sure you can meet the $10,000 average daily balance requirement to avoid the fee.
ATM Access
A debit card is usually not the norm with savings accounts but Flagstar does offer one with its Performance Savings account. You can use your card to make fee-free withdrawals at more than 56,000 Allpoint and Presto network ATMs.
That's a nice benefit to have if you'd like to be able to withdraw cash on the go. But what if you need to use an out-of-network ATM?
Flagstar charges a $2.50 fee per transaction. That fee applies on top of any fees the other bank charges.
There are no ATM fee refunds with this account. So you'll need to plan carefully to make sure you're only using in-network ATMs to avoid an added charge.
Check Writing
You typically don't get checks with a savings account, unless it's a money market account. Money market accounts earn interest like savings accounts but offer some of the features of checking accounts, including paper checks and/or a debit/ATM card.
If you need to be able to write checks you could open a Ready Checking account with Flagstar. You can transfer money over from savings to cover the checks you write. And you can avoid the monthly fee for Performance Savings this way.
Account Management
Flagstar offers several ways to manage funds, including online banking, mobile banking, and a debit card.
Deposit options include:
- Mobile check deposits
- Cash or paper check deposits at ATMs
- ACH transfers from an external linked bank account
- Internal transfers from another Flagstar account
- Incoming wire transfers
You can use your savings account debit card the same way you would any other debit card. That means you can withdraw cash, pay bills, or make purchases online and in stores.
Savings accounts are limited to 20 transactions per 24 hours, with a total transaction limit of $1,000 over that same period. You'll need to log in to online or mobile banking to view your daily mobile check deposit limits.
Flagstar is a Zelle partner so you can log in to mobile banking to send or receive person-to-person payments. You can also view your Zelle transfer limits in the Flagstar app.
FDIC Insurance
FDIC insurance protects depositors against bank failures. If an FDIC-insured bank fails for any reason, you don't have to worry about your money just disappearing.
Flagstar is FDIC insured so your accounts are protected in case the worst happens. The current FDIC coverage limit is $250,000 per depositor.
That limit extends to every bank you have accounts with. Some banks offer higher coverage limits, however, which could appeal to you if you plan to keep more than $250,000 in savings.
Frequently Asked Questions
Is Flagstar a legitimate bank?
Flagstar is a legitimate bank that offers high-yield savings accounts, checking accounts, CDs, and other banking products and services. This regional bank is a subsidiary of Flagstar Financial, Inc. which is headquartered in New York.
What's the best savings account rate?
The best savings account rate is the one that's easiest for you to earn. At Flagstar, for instance, you can get a solid rate but only if you maintain a $25,000 minimum balance. If you don't typically maintain that much in savings then another bank could be a better option.
Are online savings accounts safe?
Online savings accounts are safe when they're held at FDIC-insured banks. There's virtually zero risk of losing insured deposits. The only real risk is that savings account rates can change over time. If your rate goes down after account opening, then you'll earn less interest on your money.
