4.25% APY1
Make your money work harder with this great CD rate.
4.25% APY1
Keep your money growing longer with this excellent CD rate.
4.25% APY1
Your CD rate is locked in for 24 months, even if rates go down.
A certificate of deposit account from Flagstar Bank is a smart, secure way to save. You'll lock in a guaranteed interest rate that offers competitive yields and higher returns than most traditional savings accounts. Plus, CDs are FDIC insured up to $250,000,2 so they’re just as safe as a savings or checking account.
Guaranteed interest rate
FDIC insured up to at least $250,000 per depositor2
Minimum deposits starting at $500
No fees if you hold your CD to maturity
A wide range of terms to choose from
Use our CD interest calculator to see how much your savings could grow in a certificate of deposit account.
What sets CDs apart from savings accounts is that you agree to keep the money in your CD account for a certain length of time. In return, your CD usually earns more interest. When you open a CD, you decide on the term, whether it’s 1 week, 10 years, or something in between.
At the end of your CD term, you can withdraw your money and close the account, renew your CD for the same term, or choose a different one. Interest rates change, so be sure to check the latest rates before renewing your CD.
The idea is to open a CD and forget about it until the term ends. However, if you need to access your CD funds before then, you can, but you’ll pay an early withdrawal fee, which reduces your earnings.
Yes, they are! Your Flagstar Bank CD is FDIC insured up to $250,000.
Note: The FDIC has different ownership categories, such as single and joint accounts, which could affect your coverage. For more information, visit Are My Deposit Accounts Insured by the FDIC? on the FDIC’s website.
Yes. The interest you earn on a CD is taxed as ordinary income, just like the interest on a savings account. In January, we’ll send you an IRS Form 1099-INT showing the interest your CD earned the previous year so you can report it on your tax return.
No. But if you have $500 or more, you can open another certificate of deposit.
APY stands for annual percentage yield. It’s the amount of interest your CD account earns in a year.
You can withdraw CD funds before the term ends. However, you’ll pay an early withdrawal fee.
The fee is a certain amount of interest on the principal amount you withdraw from your CD account, whether that interest is earned or unearned. (Unearned interest is the interest your CD has earned but has not yet received.)
The early withdrawal fees are based on the length of the CD term:
Renewing your certificate of deposit is easy. The fastest way is to renew your CD online. Here’s how:
You can also visit a Flagstar branch to renew your CD in person.
A longer CD term typically comes with a higher interest rate, so your money earns more. A longer term also means paying a fee if you need to access your money before your CD reaches maturity.
A CD ladder is a way to earn a higher rate and still have regular access to your money. How does it work? Instead of putting all your money into one certificate of deposit, you’d open several CDs with different term lengths. For example:
The longer-term CDs will earn more interest, while the shorter-term ones will provide regular access to your funds. When a CD term ends, you can withdraw the money or renew the CD and keep the ladder going.
Note: Your CD ladder can include shorter or longer terms than we use in our example. Choose whatever works best for you.
Easy to open online. Easy to set up.
You can open an account anytime, day or night. It’s simple, secure, and takes just minutes. Get started with an initial deposit of $500.
Verify your identity.
We'll perform a quick security check to protect your information. You need to be at least 18 and provide your Social Security number.
Tell us about yourself.
Here’s where you enter your info, like name and address, any joint owners, and identification (e.g., driver’s license, state ID, or passport).
Make a deposit.
Add money with an online transfer (have the routing and account numbers for an existing account ready) or at a branch.
Rather open an account in person? Find your nearest branch.
Additional resources for CDs
Certificates of Deposit are eligible for renewal during the grace period or during the post maturity period.
We reserve the right to change account benefits at any time without notice. Certain restrictions may apply. Please see the complete Disclosure Guide for additional details.
Interest rates are tiered to a maximum amount.