My Banking Direct review July 2024: A high-yield savings account with a stellar 5.45% APY but few other account options

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

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Pros and Cons

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)

Who is My Banking Direct good for?

If you’re looking for a place to park your emergency fund and earn a solid return, My Banking Direct has you covered. With its high-yield savings account, you won’t need to pay pesky monthly maintenance fees to score a 5.45% APY. While its checking account isn’t the best, it’s still decent—there are no monthly fees, and since it’s a member of two ATM networks, you can access cash with its debit card at more than 55,000 fee-free ATMs worldwide. However, if you’re looking for a banking partner that offers a wider variety of products, from CDs to money market accounts (MMAs), it’s likely not your best choice.

Who shouldn’t use My Banking Direct?

Beyond its high-yield savings account, My Banking Direct doesn’t have many attractive account options. Its checking account doesn’t offer interest and the only CD option is for a 5-month term. If you did want to invest in CD, you may be better off choosing a bank like Discover or Capital One 360. Both offer many different CD terms and stellar yields. Plus, they provide solid APYs on savings accounts, too.

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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

My Banking Direct	Capital One 360	Discover
Top savings APY	Top savings APY	Top savings APY
5.45%	4.25%	4.25%
Top checking APY	Top checking APY	Top checking APY
0.00%	0.10%	N/A
Top CD APY	Top CD APY	Top CD APY
5.50%	5.00%	4.70%
Other services	Other services	Other services
MMAs and mortgages	Auto loans and credit cards	MMAs, credit cards, individual retirement accounts (IRAs), and loans
View offer	View offer	Read Review

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