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Budgeting and Saving

What is a Checking Account?

We care about your financial health as much as you do. For many of our customers, a checking account is something you’ve had for a long time, maybe even since childhood. It’s always our goal to make sure you have every financial insight at your fingertips.  So, no matter how familiar you may be with checking accounts, we’ll break down the ins and outs, show you some of the lesser-known benefits they offer, and make sure you’re getting the most out of yours. For instance, while you may know you can use your checking account for everyday withdrawals and deposits or to pay for purchases, you might not know that different accounts come with different benefits and features. We’ll help you find the type of account (or accounts) that best meets your banking needs and helps protect and grow your money.

 

What makes it a checking account?

In the most basic sense, a checking account is an all-purpose spot to put your money so you can access it easily. You can use it to receive your paycheck or to pay bills automatically. It’s also attached to a debit/ATM card, checkbook, and wire-transfer service, which you can use to make purchases or send money at any time. It tends to receive lower interest rates than savings accounts or no interest at all, as it’s understood that in most instances, the money in your checking account is designed to move around. While you use your savings account to set money aside for a rainy day or an emergency, a checking account acts as a handy place to hold the money you use to buy the things you want or need on a regular basis.*

 

However, it’s important that you don’t assume all checking accounts are the same. Some, but not all, will have monthly fees attached, while others draw higher interest for customers who maintain a significant balance. Please review all checking options and make sure you choose the checking account that works for your needs.**

 

What is required when opening a checking account?

Whether you open a checking account online or at a branch, you typically will need to provide the following information:

  • Name
  • Address
  • Mobile phone number (to verify your identity if you open an account online)
  • Date of birth
  • Social Security number or other identification number
  • Valid identification (such as driver's license, state ID, or passport)

At Flagstar, you can open an account anytime, day or night. It’s simple, secure, and takes just minutes. 

 

The perks of a checking account

Checking accounts offer a wide range of benefits and features that make them valuable to you—but do a little research to find the one that fits best. Here are some key aspects to consider:

 

  • They’re the easiest way to access your cash from your bank via a debit/ATM card.
  • They’re safe and insured by the FDIC up to $250,000 per account per bank.***
  • Many offer various overdraft protections to help you if you withdraw more than the amount available in your account.
  • You can write checks, if you need to.
  • They allow you to set up direct deposit with an employer for contactless payments that are automatically transferred into your account each pay period.
  • Some accounts offer higher interest if you maintain a set balance—look to see if your typical checking balance can offer you a better rate with a specific checking account type.
  • You might be able to qualify for reduced interest rates on equity lines of credit and loans if you keep a high enough set amount in your account.
  • With your account, you can bank on the go with online and mobile banking. Pay bills, send money with Zelle®, check your credit score, and much more.

 

We offer a range of checking accounts so you can select the right tool for any specific needs or goals you may have.

 

Things to be aware of when selecting a checking account

It’s important to remember that checking accounts shouldn’t be used for everything—they have a specific purpose—receiving and sending money safely and efficiently. Here are some things to look out for when selecting and using yours:

 

  • Because they’re not designed for growth, checking accounts typically have very low interest rates. If you’re looking to grow your money, high-interest savings accounts or financial investment products may be more effective.4
  • Some checking accounts have different requirements to gain access to certain benefits. If you don’t plan to maintain a lot of money in your checking account, you might miss out on higher-value benefits.****
  • Fees can sneak up on you if you don’t use the account regularly. If you plan to let the money sit or use the account infrequently, other types of accounts (money market or savings) might be more beneficial.

 

We’re here to help you find the right account to fit your finances. Reach out to a banker or explore our checking accounts today.

 

Looking at the big picture

Checking accounts are just one of many accounts, tools, and resources at your disposal as you work to maintain healthy finances. Make sure you’re using each account properly as part of your broader financial planning. Many experts recommend several banking accounts to help manage personal finances. This could mean, for instance, a couple of checking accounts and a couple of savings accounts for different purposes to help track and manage your funds. Personal finance expert Tiffany Aliche suggests one checking account for bills and another for spending money, plus two savings accounts—one for emergencies and another for bigger goals.*****

 

And while checking and savings accounts are the early building blocks of your financial portfolio, as your goals grow and change, you should explore other products that might be smart and necessary to keep your financial ship sailing smoothly. Products like credit cardsauto loansmortgagesHELOCs, and others can help you make the most of your money and resources. Don’t hesitate to reach out to a Flagstar banker or look at the multiple products we offer that can help.

Finger clicking to apply

Easy to open online. Easy to set up.

You can open a checking account anytime, day or night. It’s simple, secure, and takes just minutes. Get started with an initial deposit of $50.

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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.

*DeMatteo, Megan. “Here’s When You Should Put Money in a Checking Account vs. Savings Account.” CNBC, September 21, 2020. https://www.cnbc.com/select/checking-vs-savings/

 

**Bessette, Chanelle. “What Is a Checking Account?” NerdWallet, Jul 14, 2021. https://www.nerdwallet.com/article/banking/what-is-a-checking-account

 

***“Deposit Insurance at a Glance.” FDIC, October 15, 2021. https://www.fdic.gov/resources/deposit-insurance/brochures/deposits-at-a-glance/

 

****Burnette, Margerette. “Checking vs. Savings Accounts: The Difference and How to Choose.” NerdWallet, August 20, 2021. https://www.nerdwallet.com/article/banking/checking-vs-savings

 

*****Tarpley, Laura Grace, Certified Expert in Personal Finance. “How Many Bank Accounts Should You Have? An Expert Says 4 is the Magic Number.” Business Insider, July 26, 2021.

 

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.

Flagstar Performance Savings

1Annual Percentage Yield (APY) is accurate as of 2/17/2025. 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.

2Annual Percentage Yield (APY). 4.25% APY is accurate as of 2/17/2025 and available as a 13-month term. 4.25% APY is accurate as of 2/17/2025 and available as a 7-month term. 4.25% APY is accurate as of 2/17/2025 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.

Zelle® and the Zelle® related marks are wholly owned by Early Warning Services, LLC and are used herein under license.