My Banking Direct is a service of Flagstar Bank N.A. The parent company is NY Community Bank which is having financial difficulties. You can Google it. But all funds up to $250K is FDIC insured.
A: In the unlikely event of a bank failure, the FDIC responds in two capacities.
First, as the insurer of the bank's deposits, the FDIC pays insurance to depositors up to the insurance limit. Historically, the FDIC pays insurance within a few days after a bank closing, usually the next business day, by either 1) providing each depositor with a new account at another insured bank in an amount equal to the insured balance of their account at the failed bank, or 2) issuing a check to each depositor for the insured balance of their account at the failed bank.
Had nothing but good experiences with them the last 7 years. They always have among the highest yielding savings accounts, but every few years they change the yield and introduce a new savings account with the higher yield. All you have to do is open the new account and transfer in, which takes a few minutes online.
I've had an account with them for nearly 3 years now. It was the highest APR when I moved my savings there and it's remained that way since I moved it. It seems like every few months they send me an email letting me know my rate has increased. They just sent me an email on 4/8/24 that it was up to 5.55%. Their app isn't great, but if you just want a nice return on your savings it gets the job done
Not just the initial deposit I've learned. If you setup the transfer through MBD from your external account it also holds it for 9 business days. They do this for the first 30 days of a new account. Never seen this before at any of the banks I have used. They already take 2-3 days for an incoming transfer that is processed on their website to even show. Then have to wait an additional 9 business days is crazy.
Just opened an account this week. We'll see how it goes. Applied 4/15, approved 4/17. Sometime 4/18 the money transferred. I think towards the end of the day as I had been checking to see if it went through or not.
Applied on 4/12 and was approved instantly. Did an initial transfer of $1K and it's on hold for 9 days. But did another transfer of $5K separately on 4/15 and was in there on 4/17. Seems pretty simple so far but time will tell.
Yes FDIC. They need deposits. Expect this sort of rate to last a few months.
The Fed = a bunch of bankers. Profits are privatized. Losses are socialized. Some banks are allowed to fail, like Washington Mutual, while others received bailout (SVC). I personally don't trust any bank. You can get free checking and 4.93% yield at Fidelity with no minimum balance. Buy 1 month T bill (5.36%) at treasury direct for as little as $100. Interest is state tax exempt, which would be equivalent to 5.89% for high earners in CA or NY.
Used Flagstar/MBD app for both transfers to MBD.
Bank 1 transfer morning of 4/16 arrived at MBD 4/17
Bank 2 the funding bank, transfer morning of 4/17 nothing as of 4/20. Shows nothing pending or anything, WTH?
Bank 2 shows money out on 4/18.
Used Flagstar/MBD app for both transfers to MBD.
Bank 1 transfer morning of 4/16 arrived at MBD 4/17
Bank 2 the funding bank, transfer morning of 4/17 nothing as of 4/20. Shows nothing pending or anything, WTH?
Bank 2 shows money out on 4/18.
I opened an account with MBD this morning. Overall, the process was very straightforward and took less than 30 minutes with lots of security verifications via text and emails that you had to acknowledge. There was one part that was confusing that I ended up doing an online chat just to confirm. During the account opening process, it asks if you want to fund your account opening deposit and it does it via Plaid and the amount. I did that; but after the account was opened and I had logged into it, I didn't see any references about pending transfers nor were there any external banks set up in my account. It was only after chatting that the rep confirmed a transfer is pending and that the account will reflect that once it's done. I could see this be a potential problem if you weren't aware and ended up doing two separate duplicate transfers.
Used Flagstar/MBD app for both transfers to MBD.
Bank 1 transfer morning of 4/16 arrived at MBD 4/17
Bank 2 the funding bank, transfer morning of 4/17 nothing as of 4/20. Shows nothing pending or anything, WTH?
Bank 2 shows money out on 4/18.
Push the deposit into the MBD instead of pulling from MBD. It took 3 days to pull but only 1 day to push.
Push the deposit into the MBD instead of pulling from MBD. It took 3 days to pull but only 1 day to push.
Normally I do that, but Discover Bank (Funding bank for my MBD) is being a royal pain, they will not allow a link until I push a min of $5 from MBD to Discover... [ Edit: The $5 transfer has been done, but Discover is telling me that "Over Time" it will be allowed! WTF does that mean? ]
I called them, they will not define how much time. Told them that makes no sense! So I'm closing my Discover Bank account.
(Discover Bank) For your security, please initiate a transfer from Flagstar Bank, N.A. to fund your account. Over time, you'll be able to create a secure connection between accounts using other methods.
1) Log in to Flagstar Bank, N.A.
2) Connect to Discover bank by entering your routing and account numbers
3) Transfer money to your Discover account from Flagstar Bank, N.A.
Not just the initial deposit I've learned. If you setup the transfer through MBD from your external account it also holds it for 9 business days. They do this for the first 30 days of a new account. Never seen this before at any of the banks I have used. They already take 2-3 days for an incoming transfer that is processed on their website to even show. Then have to wait an additional 9 business days is crazy.
It's apparently common for some banks (see https://lifehacker.com/why-the-ba...1841841696) and it just happened to me as well. The initial funding at account opening was done in a day. The day after, I got the 9 business day hold notice. At least interest is still being acrued while it's on hold.
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A: In the unlikely event of a bank failure, the FDIC responds in two capacities.
First, as the insurer of the bank's deposits, the FDIC pays insurance to depositors up to the insurance limit. Historically, the FDIC pays insurance within a few days after a bank closing, usually the next business day, by either 1) providing each depositor with a new account at another insured bank in an amount equal to the insured balance of their account at the failed bank, or 2) issuing a check to each depositor for the insured balance of their account at the failed bank.
https://www.depositacco
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Thanks very much for the information!
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Bank 1 transfer morning of 4/16 arrived at MBD 4/17
Bank 2 the funding bank, transfer morning of 4/17 nothing as of 4/20. Shows nothing pending or anything, WTH?
Bank 2 shows money out on 4/18.
Bank 1 transfer morning of 4/16 arrived at MBD 4/17
Bank 2 the funding bank, transfer morning of 4/17 nothing as of 4/20. Shows nothing pending or anything, WTH?
Bank 2 shows money out on 4/18.
Bank 1 transfer morning of 4/16 arrived at MBD 4/17
Bank 2 the funding bank, transfer morning of 4/17 nothing as of 4/20. Shows nothing pending or anything, WTH?
Bank 2 shows money out on 4/18.
[ Edit: The $5 transfer has been done, but Discover is telling me that "Over Time" it will be allowed! WTF does that mean? ]
I called them, they will not define how much time. Told them that makes no sense! So I'm closing my Discover Bank account.
(Discover Bank) For your security, please initiate a transfer from Flagstar Bank, N.A. to fund your account. Over time, you'll be able to create a secure connection between accounts using other methods.
1) Log in to Flagstar Bank, N.A.
2) Connect to Discover bank by entering your routing and account numbers
3) Transfer money to your Discover account from Flagstar Bank, N.A.
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