Review
Updated
Fact Checked
Eric McWhinnie
My Banking Direct is the online-only subsidiary of Flagstar Bank, which is one of the oldest and largest regional banking institutions in the United States. My Banking Direct offers high-yield savings and CD products, as well as online checking accounts that are highly competitive.
In this full My Banking Direct review, see if this online bank could be a good fit for your financial needs.
My Banking Direct
Bottom Line
My Banking Direct offers savings accounts and CDs with high APYs and no fees, as well as a competitive online checking account. It isn't a full-featured bank and doesn't offer loans or other banking products, but it can be a good choice for those looking to maximize yield.
Pros
- High APYs
- No monthly fees for any accounts
- Excellent mobile app
- Access to more than 55,000 ATMs
Cons
- Only a few account types
- No branch access
- Only one CD term
- High minimums for some accounts
My Banking Direct savings account
My Banking Direct specializes in highly competitive online deposit accounts, and its high-yield savings account offering is an excellent product.
My Banking Direct High Yield Savings Account
The My Banking Direct High Yield Savings Account is a highly competitive product. It has one of the highest APYs that we've found, no monthly account fees, and access to My Banking Direct's user-friendly online platform as well as the highly rated Flagstar Mobile Banking app. One of the biggest drawbacks is that you'll need $500 to open an account, but if you have this much cash to set aside, it can be an excellent online savings account.
Ratings Methodology
Rates as
of May 18, 2024
My Banking Direct High Yield Savings Account
Member FDIC.
APY
5.55%
Min. To Earn APY
$1
- Very high APY
- No monthly account fees
- Excellent mobile banking app with Zelle
- $500 minimum to open
- No Flagstar branch access
The My Banking Direct High Yield Savings Account has one of the highest APYs on our radar and no monthly account fees. While it has a $500 minimum initial deposit, it can be an excellent savings account for those looking to maximize their returns.
Compare savings rates
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
up to 4.60%
Rate info
You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
|
New customers can earn up to a $300 bonus with qualifying direct deposits!
|
|
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
5.00% APY for balances of $5,000 or more
Rate info
5.00% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000 for max APY
|
N/A
|
|
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
5.25%
Rate info
To ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.
Min. to earn: $0
|
N/A
|
My Banking Direct CD accounts
The good news is that My Banking Direct offers CD accounts. However, they only come in one term length, and aren't likely to meet the needs of all CD depositors.
My Banking Direct CD
As of March 2024, My Banking Direct currently offers just one CD with a 5-month term. It has some strong features, such as one of the highest APYs on our radar, but it also requires a relatively high $2,500 opening deposit.
A five-month CD is a rather short maturity term, and might not be the best choice for customers who want to lock in an interest rate for a long period. It also makes My Banking Direct not a good choice for savers who might want to start a CD ladder.
Rates as of May 14, 2024
APY = Annual Percentage Yield
My Banking Direct CD
Bottom Line
My Banking Direct currently offers just one CD term, but its APY is among the best we've found. You'll need a minimum deposit of $2,500 to open this CD, however.
MINIMUM DEPOSIT $2,500
| 5 Mo. APY |
|---|
| 5.50% |
Compare CD rates
While My Banking Direct offers a stellar rate on its 5-month CD, anyone looking for a larger variety of CD terms will want to look elsewhere.
Rates as of May 14, 2024
| Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
|---|---|---|---|---|
Member FDIC.
| APY: 4.70% | Term: 1 Year | Min. Deposit: $2,500 | |
| APY: 5.05% | Term: 1 Year | Min. Deposit: $1 | |
|
| APY: 5.15% | Term: 9 Months | Min. Deposit: $1 | |
Member FDIC.
| APY: 4.75% | Term: 1 Year | Min. Deposit: $500 |
My Banking Direct checking account
My Banking Direct offers an online checking account that can be an excellent compliment to the My Banking Direct High Yield Savings Account, or as a standalone checking account.
My Banking Direct Checking
The My Banking Direct Checking account is a solid online checking account product with several valuable features. It has no monthly maintenance fees, as well as no overdraft or insufficient funds fees. You can open an account with as little as $1, and the account can be managed through the excellent Flagstar Mobile Banking app. Customers can access their money at more than 55,000 ATMs in Allpoint and Presto! networks worldwide.
Ratings Methodology
Rates as
of May 18, 2024
My Banking Direct Checking
Member FDIC.
APY
N/A
Min. To Earn APY
N/A
- No monthly maintenance fee
- No overdraft of insufficient funds fees
- $1 new account minimum
- Access to over 55,000 free ATMs
- Doesn't pay interest
- No branch access
My Banking Direct's Direct Checking account has no fees whatsoever and can be opened with just $1. It offers a linked debit card and access to cash at over 55,000 fee-free ATMs.
Checking account comparison
We recommend comparing checking account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
0%
Min. to earn: N/A
|
Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account')
|
|
|
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
0.50%
Rate info
You can earn the maximum savings APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
|
Cash bonus up to $300 with direct deposit set up (see details when you click 'Open Account')
|
|
Rating image, 4.25 out of 5 stars.
4.25/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
0.40% (up to 3.30%)
Rate info
To earn the full APY, account holders must do all of the following: Receive monthly direct deposits totaling more than $1,500; make 10 transactions a month with your Axos debit card, or sign up for Axos's Personal Finance Manager; maintain an average daily balance of $2,500 per month in an Axos Invest Self Directed Trading Account; and use your Rewards Checking account to make your full monthly Axos Bank consumer mortgage, personal, or auto loan payment.
Min. to earn: Monthly direct deposits totaling at least $1,500
|
Use the promo code AXOS300 when you apply for a Rewards Checking account by June 30th, 2024. Then have qualifying direct deposits to earn up to a $300 bonus!
|
My Banking Direct customer service and experience
Even though My Banking Direct is a subsidiary of Flagstar bank, customers don't have access to branches. There are two main ways to contact customer service -- by calling its customer care center, or using the secure message center in the online banking platform. Live customer service representatives are available Monday through Friday from 8 a.m. until 8 p.m. ET, Saturdays from 9 a.m. until 5 p.m., and Sundays from 9 a.m. until 2 p.m.
My Banking Direct relationship benefits
My Banking Direct is an online-only institution with three main banking products -- savings accounts, checking accounts, and certificates of deposit. It doesn't offer any relationship benefits, other than the ability to seamlessly link accounts.
Alternatives to My Banking Direct
My Banking Direct is a solid choice if you want to maximize the yield from your savings, or if you need a fee-free basic online checking account. But if you're looking for other banking products and services, you may be better off with one of these alternatives.
Ally Bank
Ally Bank offers high-yield savings accounts and online checking accounts, just like My Banking Direct. However, it also has a variety of CD terms (including no-penalty CDs), several types of loans, and a full investment platform integrated into one easy-to-use platform.
Capital One Bank
Although My Banking Direct is a subsidiary of a large, branch-based bank, it doesn't offer branch access to its customers. If you want the yields of an online bank, but the convenience of branch-based banking, Capital One could be a good choice. It offers a variety of deposit accounts and loans, has an excellent credit card product portfolio, and offers APYs that are on-par with many online banking leaders.
Is My Banking Direct right for you?
My Banking Direct could be a good choice for you if you want to maximize the yield from your online savings account or if you need a basic, fee-free online checking account. It's not likely to be the best choice for CDs, with just one term length currently available. It also doesn't offer any major banking products beyond deposit accounts, so it's probably not the best choice if you want an all-in-one banking relationship.
Other products by My Banking Direct
One of the biggest drawbacks of My Banking Direct is that it only offers savings accounts, checking accounts, and CDs. It doesn't offer mortgages, credit cards, investments, other types of loans, or any of the other products that full-service banks commonly offer. To be sure, the bank's deposit accounts are highly competitive and could certainly be worth a look. But it isn't likely to be a suitable full-service bank replacement.
Our bank and credit union methodology (H2)
Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.
These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.
We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.
Learn more about how The Motley Fool Ascent rates bank accounts.
Our Banking Experts
Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for The Ascent and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column ("Ask a Fool") that is syndicated in USA Today, and his work has been regularly featured on CNBC, Fox Business, MSN Money, and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.
Fact Checked
Eric McWhinnie
Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
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