My Banking Direct review August 2024: A high-yield savings account with a stellar 5.45% APY but few other account options
Trina Paul covers all subjects related to personal finance, from bank deposit products and credit cards, to investing. Her bylines can also be found at CNBC Select and the Skimm. She graduated from Swarthmore College with a degree in economics.
Cassie is the business and banking editor at Fortune Recommends. She obtained her degree from Northern Kentucky University and is a certified SCRUM master. Prior to joining the team at Fortune Recommends, Cassie was a deputy editor at Forbes Advisor and a Central Operations Project Manager at Fit Small Business.
My Banking Direct is an online bank that offers a handful of products, most notably a high-yield savings account with a generous annual percentage yield (APY) of 5.45%. The bank is a service of Flagstar Bank, N.A., a regional bank with a significant retail presence in the Midwest and Northeast. The parent company of both banks is New York Community Bancorp, which was founded in 1859.
While My Banking Direct offers a high APY on its savings account, the bank may not be ideal for everyone due to its limited deposit account options. However, it may be a solid choice for those seeking competitive savings rates.
All rates and fees are current as of July 3, 2024, and are subject to change.
My Banking Direct
Checking accounts: | Starting at $0 per month |
Savings accounts: | Open with as little as $500 |
Certificate of deposit (CD) rates: | Earn up to 5.50% APY |
Pros
- High APY on savings account
- No monthly maintenance fees
- No checking account overdraft fees
Cons
- Limited account options
- Only one CD term offered
- Closing account fee (if you do so within 180 days of opening an account)
My Banking Direct rates and products
My Banking Direct offers a limited selection of products: a high-yield savings account, checking account, and CD.
Checking accounts
The My Banking Direct checking account is a free checking account that doesn’t charge monthly maintenance fees or overdraft fees. To open an account, you’ll need $1. You’ll also receive a free debit card when you sign up, which you can use for free at Allpoint and Presto! ATMs worldwide.
While this checking account is free, it doesn’t provide many frills or perks. It’s a noninterest-bearing account and there’s no bonus for signing up, while many of its competitors offer a handful of checking account bonuses.
Savings accounts
What makes My Banking Direct stand out from competitors? The stellar 5.45% APY you can receive on the high-yield savings account. Although there is a minimum opening deposit requirement, it is modest: You’ll only need $500 to open an account. As with its checking account, you won’t have to worry about paying monthly maintenance fees.
My Banking Direct savings rates compared to current top rates*
Though My Banking Direct is a great option, there are some institutions that offer higher interest rates. Compare the rates above to this list of competitors:
Certificates of Deposit
My Banking Direct’s CD is best for savers who have a short investment horizon and who already have a bit of a nest egg built up. The bank offers just one 5-month CD option, and you’ll need at least $2,500 to open an account.
Since CDs are timed deposits, if you tap your money before it matures, you’ll have to pay an early withdrawal penalty. For the 5-month CD, you’ll only have to give up around one month of interest.
The My Banking Direct platform and customer support
My Banking Direct is an online bank, so you can access your account through its website and the Flagstar Mobile Banking app, which is available through the Apple App and Google Play stores. The app offers you the ability to do everything you would otherwise do in person—you can do mobile check deposits, schedule payments, check your balance, and more.
To get in touch with My Banking Direct customer service, you can contact them via phone call, secure message (through your online banking portal), or mail.
If you plan to call them, support is available seven days a week:
- Monday through Friday: 8 a.m. to 8 p.m. Eastern Time (ET)
- Saturday: 9 a.m. to 5 p.m. ET
- Sunday: 9 a.m. to 2 p.m. ET
Is My Banking Direct secure?
While My Banking Direct hasn’t suffered any major security issues, its parent company has been subject to multiple data breaches in the past few years. In 2021, hackers stole 1.5 million customers’ Social Security numbers.
In 2023, customers were notified that a data breach had affected MOVEit Transfer, a software used by one of Flagstar’s third-party vendors. The data breach impacted more than 800,000 Flagstar customers, exposing their private information to hackers.
My Banking Direct user reviews
There are very few customer reviews of My Banking Direct available online. The online banking service doesn’t have a Trustpilot or Better Business Bureau (BBB) page. Flagstar Bank, however, has both, but many of the reviews detail issues with their mortgages.
Compare My Banking Direct alternatives
Is My Banking Direct right for you?
My Banking Direct is a good banking partner for consumers seeking affordable, low-cost checking and savings accounts. Its high-yield savings account is its standout product, with an APY that’s well above the national average.
However, if you don’t plan to take advantage of its high-yield savings account, it’s best to opt for a different online bank or credit union, especially if you desire other account options, such as MMAs, multiple CD term options, or interest-bearing checking accounts.
Frequently asked questions
Is My Banking Direct a real bank?
My Banking Direct is a real bank and is a service of Flagstar Bank. It is a Federal Deposit Insurance Corp. (FDIC)-insured bank.
Where can I take out money from My Banking Direct card?
You can use your My Banking Direct card at any ATM. However, for fee-free withdrawals, you must opt for an Allpoint or Presto! ATM.
What banks are associated with My Banking Direct?
My Banking Direct is an online banking service of Flagstar Bank. Flagstar’s parent company is New York Community Bancorp.
About the contributors
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