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Earn up to 4.25% APY1 on a Certificate of Deposit

Choose from a wide range of CD rates and terms to grow your savings.

Earn more with our CD specials

4.25% APY1

7-Month CD

Make your money work harder with this great CD rate.

4.25% APY1

13-Month CD

Keep your money growing longer with this excellent CD rate.

4.25% APY1

24-Month CD

Your CD rate is locked in for 24 months, even if rates go down.

Here’s how a CD benefits you

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.

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Guaranteed interest rate

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FDIC insured up to at least $250,000 per depositor2

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Minimum deposits starting at $500

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No fees if you hold your CD to maturity

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A wide range of terms to choose from

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How much
can you earn?

Use our CD interest calculator to see how much your savings could grow in a certificate of deposit account.

Certificate of deposit FAQs 

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:

  • 10 days: 7 days of simple interest
  • 1-5 months: 30 days of simple interest
  • 6-11 months: 90 days of simple interest
  • 12-35 months: 180 days of daily compound interest
  • 36+ months: 365 days of daily compound interest

Renewing your certificate of deposit is easy. The fastest way is to renew your CD online. Here’s how:

  • Have your CD account number, zip code, and the last four digits of your Social Security number ready.
  • Visit our CD renewal page and enter the information above.
  • Choose to renew your CD for the same term length or select a different one.

 

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:

  • $2,000 in a 1-year CD
  • $2,000 in a 2-year CD
  • $2,000 in a 3-year CD
  • $2,000 in a 4-year CD

 

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.

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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.

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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.

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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).

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Make a deposit.

Add money with an online transfer (have the routing and account numbers for an existing account ready) or at a branch.

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Rather open an account in person? Find your nearest branch.

Do you need to renew an
existing CD?

Certificates of Deposit are eligible for renewal during the grace period or during the post maturity period.

 

1Annual Percentage Yield (APY). 4.25% APY is accurate as of 2/10/2025 and available as a 13-month term. 4.25% APY is accurate as of 2/10/2025 and available as a 7-month term. 4.25% APY is accurate as of 2/10/2025 and available as a 24-month term. Fees could reduce earnings. Withdrawals may result in imposition of applicable early withdrawal penalties. $500 minimum opening deposit required. Maximum deposit is $10 million. 'New Money' is defined as funds that are not currently deposited in any account at Flagstar Bank. Not available for public units or Business CDs. Certain restrictions, including area restrictions, may apply. Offer subject to change or cancellation at any time without notice. Must present offer at account opening. Limited-time offer. Important information will be provided to you in the disclosures you receive during the account opening process. Please contact your local branch for more information.

2Visit fdic.gov for more information about FDIC insurance coverage.

Flagstar Performance Savings

3Annual Percentage Yield (APY) is accurate as of 2/10/2025. Tier 1 $0 – $9,999.99 features an annual percentage yield of 0.10%. Tier 2 $10,000.00 – $24,999.99 features an annual percentage yield of 0.10%. Tier 3 $25,000.00 – $49,999.99 features an annual percentage yield of 4.20%. Tier 4 $50,000.00 – $99,999.99 features an annual percentage yield of 4.20%. Tier 5 $100,000.00 – $499,999.99 features an annual percentage yield of 4.20%. Tier 6 $500,000.00+ features an annual percentage yield of 4.20%. The interest rate(s) and annual percentage yield(s) are variable and may change at any time before or after the account is opened. Initial minimum opening deposit to earn the higher interest rate on the Flagstar Performance Savings account is $25,000 and must be “new money,” which is defined as money that is not currently on deposit in any Flagstar Bank account (except maturing CDs). Additionally, (i) account must be funded within 90 days of the approval date, and (ii) early account closure fee may be imposed for accounts closed within 180 days. A maintenance service charge of $15 will be imposed every statement cycle if the average daily collected balance in the account is less than $10,000. The maintenance service charge will be waived if you are the tax reported owner on this account and you are an owner on a Flagstar personal checking account. Fees may reduce earnings. Personal accounts only. Limited time offer. Area restrictions may apply. If you are a Private Bank client, please contact your Private Client Group to enroll.