Flagstar Bank is currently offering a great 3 month 5.00% APY CD with an actual rate of 4.92%. This is an internet CD and the best interest CD rate offered by Flagstar Bank. The minimum deposit to open is $500. This CD is also available in an IRA account.

The CD interest is compounded quarterly and for balances up to $10,000 or more, customers can get paid every month by mail. There will be a 10 day grace period when the CD maturity when you can add to the CD, withdrawal, or you can wait until the grace period is over and it will automatically roll over.

Flagstar Bank is also offering a few other certificates of deposits explained below:

Certificate of Deposit (CD) tier:
-$500 deposited for 3 months is offered a CD (Certificate of Deposit) rate of 4.92% with 5.00% APY.
-$500 deposited for 12 months is offered a CD (Certificate of Deposit) rate of 4.83% with 4.91% APY.
-$500 deposited for 18 months is offered a CD (Certificate of Deposit) rate of 4.78% with 4.86% APY.
-$500 deposited for 24 months is offered a CD (Certificate of Deposit) rate of 4.78% with 4.86% APY.
-$500 deposited for 30 months is offered a CD (Certificate of Deposit) rate of 4.78% with 4.86% APY.
-$500 deposited for 36 months is offered a CD (Certificate of Deposit) rate of 4.78% with 4.86% APY.
-$500 deposited for 48 months is offered a CD (Certificate of Deposit) rate of 4.78% with 4.86% APY.
-$500 deposited for 60 months is offered a CD (Certificate of Deposit) rate of 4.78% with 4.86% APY.

From the above Flagstar Bank’s CD rates tier, it’s clear that investing in any other CD other than the 3 month and 12 month CD wouldn’t be a smart decision. It is better off to invest in the 3 month CD, get the highest rate and let it automatically roll over than to lock your money in a 60 month CD for a lower rate.

Early withdrawls peanltyu before the maturity of this 5.00% APY 3 month is a 30 day interest under Flagstar Bank’s ‘Truth in Savings Disclosure’ statement. There is no principle protection program.