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My Banking Direct Review: A Solid Online Bank With High Yields

Review Updated
Matt Frankel, CFP®
Author: Matt Frankel, CFP®
Matt Frankel, CFP®
Matt Frankel, CFP®
Writer, Analyst

Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for Motley Fool Money and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column for the Motley Fool ("Ask a Fool") that is syndicated in USA Today, and his work with Motley Fool Money has also been syndicated to MSN and Yahoo! Finance. He has been regularly featured on Fox Business and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.

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Eric McWhinnie
Fact Checked: Eric McWhinnie
Eric McWhinnie
Eric McWhinnie

Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.

My Banking Direct is the online-only subsidiary of Flagstar Bank, which is one of the oldest and largest regional banking institutions in the United States.

My Banking Direct offers high-yield savings and CD products, as well as online checking accounts that are highly competitive.

  • Our team of experts assessed 100+ banking institutions
  • We evaluate all banking institutions across the same 4 key criteria: annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks
  • Our bank ratings are never influenced by our advertising partners
  • We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased
Offer image for
Member FDIC.

My Banking Direct

Bottom Line

My Banking Direct offers savings accounts and CDs with high APYs and no fees, as well as a competitive online checking account. It isn't a full-featured bank and doesn't offer loans or other banking products, but it can be a good choice for those looking to maximize yield.

Pros
  • High APYs
  • No monthly fees for any accounts
  • Excellent mobile app
  • Access to more than 55,000 ATMs
Cons
  • Only a few account types
  • No branch access
  • Only one CD term
  • High minimums for some accounts

Savings accounts

The My Banking Direct High Yield Savings Account is a highly competitive product. It has one of the highest APYs that we've found, no monthly account fees, and access to My Banking Direct's user-friendly online platform as well as the highly rated Flagstar Mobile Banking app.

One of the biggest drawbacks is that you'll need $500 to open an account, but if you have this much cash to set aside, it can be an excellent online savings account.

Ratings Methodology
Rates as of Dec 20, 2024

My Banking Direct High Yield Savings Account

Member FDIC.
APY
5.55%
Min. To Earn APY
$1
  • Very high APY
  • No monthly account fees
  • Excellent mobile banking app with Zelle
  • $500 minimum to open
  • No Flagstar branch access

The My Banking Direct High Yield Savings Account has one of the highest APYs on our radar and no monthly account fees. While it has a $500 minimum initial deposit, it can be an excellent savings account for those looking to maximize their returns.

Compare savings rates

Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.

Account APY Promotion Next Steps
3.80%
Rate info Circle with letter I in it. 3.80% annual percentage yield as of December 27, 2024. Terms apply.
Min. to earn: $0
N/A
Open Account for American Express® High Yield Savings

On American Express's Secure Website.

up to 4.00%²
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
New customers can earn up to a $300 bonus with qualifying direct deposits!¹
3.80%
Rate info Circle with letter I in it. See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
N/A

Certificates of deposit

As of March 2024, My Banking Direct currently offers just one CD with a 5-month term. It has some strong features, such as one of the highest APYs on our radar, but it also requires a relatively high $2,500 opening deposit.

A five-month CD is a rather short maturity term, and might not be the best choice for customers who want to lock in an interest rate for a long period. It also makes My Banking Direct not a good choice for savers who might want to start a CD ladder.

Rates as of Dec. 18, 2024

APY = Annual Percentage Yield

Offer image for My Banking Direct CD
My Banking Direct CD
Bottom Line

My Banking Direct currently offers just one CD term, but its APY is among the best we've found. You'll need a minimum deposit of $2,500 to open this CD, however.

MINIMUM DEPOSIT $2,500
5 Mo. APY
5.50%

Compare CD rates

While My Banking Direct offers a stellar rate on its 5-month CD, anyone looking for a larger variety of CD terms will want to look elsewhere.

Rates as of Dec. 18, 2024
Bank & CD Offer APY Term Min. Deposit Next Steps
APY: 4.00% Term: 1 Year Min. Deposit:  $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

Member FDIC.
APY: 4.25% Term: 10 Months Min. Deposit:  $2,500
Open Account for

On Secure Website.

Member FDIC.
APY: 4.25% Term: 6 Months Min. Deposit:  $500
Open Account for

On Secure Website.

Checking accounts

The My Banking Direct Checking account is a solid online checking account product with several valuable features. It has no monthly maintenance fees, as well as no overdraft or insufficient funds fees. You can open an account with as little as $1, and the account can be managed through the excellent Flagstar Mobile Banking app.

Customers can access their money at more than 55,000 ATMs in Allpoint and Presto! networks worldwide.

Ratings Methodology
Rates as of Dec 20, 2024

My Banking Direct Checking

Member FDIC.
APY
N/A
Min. To Earn APY
N/A
  • No monthly maintenance fee
  • No overdraft of insufficient funds fees
  • $1 new account minimum
  • Access to over 55,000 free ATMs
  • Doesn't pay interest
  • No branch access

My Banking Direct's Direct Checking account has no fees whatsoever and can be opened with just $1. It offers a linked debit card and access to cash at over 55,000 fee-free ATMs.

Compare checking accounts

We recommend comparing checking accounts to make sure you're getting the best fit for you. Here's a list of our favorite accounts.

Account APY Promotion Next Steps
0%
Min. to earn: N/A
Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account')
Open Account for Discover® Cashback Debit

On Discover Bank's Secure Website.

up to 1.10%
Min. to earn: $1
High APY when you complete 10 or more qualifying debit card purchases each month

Customer service and experience

Even though My Banking Direct is a subsidiary of Flagstar bank, customers don't have access to branches. There are two main ways to contact customer service -- by calling its customer care center, or using the secure message center in the online banking platform.

Live customer service representatives are available Monday through Friday from 8 a.m. until 8 p.m. ET, Saturdays from 9 a.m. until 5 p.m., and Sundays from 9 a.m. until 2 p.m.

Relationship benefits

My Banking Direct is an online-only institution with three main banking products -- savings accounts, checking accounts, and certificates of deposit. It doesn't offer any relationship benefits, other than the ability to seamlessly link accounts.

Alternatives to My Banking Direct

My Banking Direct is a solid choice if you want to maximize the yield from your savings, or if you need a fee-free basic online checking account. But if you're looking for other banking products and services, you may be better off with one of these alternatives.

Ally Bank

Ally Bank offers high-yield savings accounts and online checking accounts, just like My Banking Direct. However, it also has a variety of CD terms (including no-penalty CDs), several types of loans, and a full investment platform integrated into one easy-to-use platform.

Capital One Bank

Although My Banking Direct is a subsidiary of a large, branch-based bank, it doesn't offer branch access to its customers. If you want the yields of an online bank, but the convenience of branch-based banking, Capital One could be a good choice. It offers a variety of deposit accounts and loans, has an excellent credit card product portfolio, and offers APYs that are on-par with many online banking leaders.

Is My Banking Direct right for you?

My Banking Direct could be a good choice for you if you want to maximize the yield from your online savings account or if you need a basic, fee-free online checking account.

It's not likely to be the best choice for CDs, with just one term length currently available. It also doesn't offer any major banking products beyond deposit accounts, so it's probably not the best choice if you want an all-in-one banking relationship.

Other products by My Banking Direct

One of the biggest drawbacks of My Banking Direct is that it only offers savings accounts, checking accounts, and CDs. It doesn't offer mortgages, credit cards, investments, other types of loans, or any of the other products that full-service banks commonly offer. To be sure, the bank's deposit accounts are highly competitive and could certainly be worth a look. But it isn't likely to be a suitable full-service bank replacement.

Our bank and credit union methodology

Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.

These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.

We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.

Learn more about how Motley Fool Money rates bank accounts.

FAQs

  • Yes, My Banking Direct is FDIC-insured, which means deposits are protected up to the standard insurance amount of $250,000 per depositor, per insured bank, for each account ownership category.

  • My Banking Direct is the online-only subsidiary of Flagstar Bank, which is one of the oldest and largest regional banking institutions in the United States.