My Banking Direct Reviews

My Banking Direct is best for anyone who’s comfortable banking online and needs a new checking account, high-yield savings account (HYSA) or five-month CD. No matter which account you choose, you’ll find minimal fees and competitive rates on savings.

But watch out for higher-than-average opening deposit requirements. You need at least $500 to open a high-yield savings account and $2,500 to open a CD. If you can’t comfortably meet these minimums, explore other top online banks with similar yields.

My Banking Direct is the online division of Flagstar Bank, which is owned by New York Community Bancorp (NYCB). Similar to other online banks, My Banking Direct can offer better accounts with lower fees because it doesn’t have physical branches that are costly to operate. This lower overhead means it can pass on these savings to you in the form of competitive yields that help you grow your savings rather than stifle it.

You can open any My Banking Direct account online using this information:

• Residential address
• Social Security number or tax identification number
• Driver’s license or government-issued photo ID

You’ll manage any My Banking Direct accounts you open through the NYCB Mobile banking app.

My Banking Direct keeps it lean, offering just four bank accounts.

Direct Checking

If you need a new checking account that won’t nickel-and-dime you with fees, check out My Banking Direct’s Direct Checking account. It has no monthly maintenance fees and no overdraft fees, and requires just $1 to open an account. You also get a debit card with free access to over 55,000 Allpoint ATMs.

High Yield Savings

The My Banking Direct High Yield Savings Account earns an impressive 5.35% APY with no monthly fees. But you’ll need at least $500 to open an account, which is a higher minimum opening deposit requirement than other HYSAs. For instance, Ally Bank and Synchrony have high-yield savings accounts with no opening deposit requirements.

Certificates of Deposit

My Banking Direct provides only one CD term for customers—a five-month CD that earns 5.50% APY. You need at least $2,500 to open an account, which is more than you need to open most CDs at other online banks.

At maturity, you have a seven-day grace period to take out your money before it renews for another term. You’ll pay an early withdrawal penalty equal to 30 days of simple interest if you need your money before your CD matures.

Prepaid Benefits Debit Card

My Banking Direct provides state-issued prepaid debit cards for those employed by certain government institutions in California, New Jersey, Pennsylvania and Rhode Island. These employees receive their paychecks on a Prepaid Benefits Debit Card rather than into a bank account of their choice. Employees can use their prepaid card to make purchases and withdraw cash at ATMs. This card is FDIC-insured just like any of My Banking Direct’s other bank accounts.

My Banking Direct has some of the highest savings account rates among online banks. At publishing, you can earn 5.35% on a high-yield savings account and 5.50% on a five-month CD.

These rates are far above the FDIC national average, which is 0.47% for a savings account and 1.51% for a six-month CD. (The FDIC doesn’t publish average rates for five-month terms.) My Banking Direct’s checking account does not earn interest.

With My Banking Direct, you’ll find no monthly fees or overdraft fees. But you may run into these charges:

• $2.50 for domestic nonnetwork ATM withdrawals, transfers or inquiries
• $3 for international nonnetwork ATM withdrawals, transfers or inquiries
• $5 for debit card replacements ($50 for rushed replacements)
• $30 fee if you close your account within 180 days of opening
• $35 for stop-payment requests
• $15 for incoming wire transfers

My Banking Direct has higher savings account interest rates than leading online banks like Ally and Synchrony. But you get fewer account features in exchange, and you’ll have to pay a higher minimum opening deposit. Here’s a look at how all three high-yield savings accounts compare at the time of publishing:

My Banking Direct is a real bank. It’s a service of Flagstar Bank and New York Community Bancorp, which collectively managed $116.3 billion in assets as of December 2023. NYCB has been operating since 1859 and is a publicly traded company on the New York Stock Exchange (ticker symbol: NYCB). All accounts at My Banking Direct are FDIC-insured.