Flagstar Bank Offers 48 Month CD at 4.50% APY

Flagstar Bank if offering a competitive 48 month (4 year) CD paying 4.50% APY. The rate may vary by location. BankDeals is reporting that the rate is good in TX, CA, FL and NY. I also tried MA and got the 4.5% APY rate also. Ironically, the rate is only 4.24% APY in Flaglar's market area of GA, MI, IN.

The rate is very competitive. According to the BestCashCow rate tables, the top 3 year CD rate is 3.8% APY while the top 5 year cd rate is 4.06% APY.

Bauer Financial provides a 2 Star rating for Flagstar (out of 5 stars) for safety and soundness, reflecting the bank's problems with delinquent mortgages and foreclosures. According to the Detroil Free Press, the bank has approval to receive $266 million from the $700 billion TARP. The deal is dependent on Flagstar raising $250 from MatlinPatterson Global Advisers LLC, a New York private equity firm specializing in distressed companies.

As always, be sure to stay within FDIC limits when making a deposit or opening an account.

Thanks to BankDeals for finding this offer.

Today's Highest Online CD Rates

Bank	Product Term	Interest Rate (APY)
Northern Bank Direct	1-Year	5.60% APY with $500 minimum
Finworth, a division of InsBank	1-Year	5.38% APY with $50,000 minimum
TotalDirect, a division of City National Bank of Florida	1-Year	5.35% APY with $25,000 minimum
Dollar Savings Direct, a division of Emigrant Bank	3-Year	5.00% APY with $1,000 minimum
First Internet Bank of Indiana	3-Year	4.66% APY with $1,000 minimum
IncredibleBank	3-Year	4.58% APY with $1,000 minimum
First Internet Bank of Indiana	5-Year	4.55% APY with $1,000 minimum
BMO Alto, a division of Bank of Montreal Harris	5-Year	4.50% APY with no minimum
Department of Commerce	5-Year	4.34% APY with $500 minimum

Bank

Product Term

Interest Rate (APY)

Northern Bank Direct

1-Year

5.60% APY with $500 minimum

Finworth, a division of InsBank

1-Year

5.38% APY with $50,000 minimum

TotalDirect, a division of City National Bank of Florida

1-Year

5.35% APY with $25,000 minimum