In comparison with conventional financial savings accounts, high-yield financial savings accounts pay the next rate of interest as a result of in most situations, they’re provided by online-only establishments. By not providing bodily areas, these banks scale back their overhead prices and are subsequently in a position to go alongside these financial savings to clients within the type of greater yields. This makes a high-yield financial savings account a good selection for safely rising your emergency funds and money you’ve reserved for long-term monetary objectives like buying a house.
My Banking Direct is one firm providing high-yield financial savings accounts. This assessment will provide help to resolve whether or not or not the financial institution is the appropriate match for you by taking a better take a look at its merchandise and their options.
Finest high-yield financial savings account from a regional financial institution
In case you want banking with a regional establishment as a substitute of a nationwide financial institution, My Banking Direct might be a good selection for a high-yield financial savings account. It’s a service of Flagstar Financial institution, which is a subsidiary of New York Neighborhood Bancorp, a publicly traded firm and one of many largest regional banks within the nation.
My Banking Direct stands out amongst opponents for its no-fee, high-yield financial savings account and robust cellular banking expertise. Within the following part, we take a better take a look at the professionals and cons of the establishment’s high-yield choices.
My Banking Direct high-yield financial savings accounts execs and cons
- No month-to-month account charges
- Robust cellular banking expertise
- Helps cellular examine and recurring deposits
- Requires a $500 minimal opening deposit
- Working firm has poor buyer evaluations
- $30 price for closing the account inside 180 days of opening it
Execs defined
No month-to-month account charges
My Banking Direct doesn’t cost any month-to-month charges for its high-yield financial savings account. Which means you don’t have to fulfill a sure month-to-month contribution stage to turn into eligible for no-fee financial savings, not like a number of the financial institution’s opponents, guaranteeing that you simply don’t must pay something to take care of your account no matter how usually you utilize it.
Robust cellular banking expertise
As a buyer of My Banking Direct, you’ll have the ability to entry your account in your cell phone by way of the New York Neighborhood Financial institution cellular app, which has earned sturdy evaluations in each the Apple Retailer and Google Play Retailer.
The app consists of a wide range of useful instruments to simplify the cellular banking expertise, together with:
- Built-in invoice pay
- Zelle
- Cellular alerts and notifications
- On the spot steadiness view
- An built-in credit score rating-checking function
Helps cellular examine and recurring deposits
One other benefit of My Banking Direct is its help for cellular examine deposits. It is a frequent function for financial savings and checking accounts, however some opponents don’t supply it for his or her high-yield merchandise. Cellular deposits are particularly essential for My Banking Direct given its lack of bodily branches.
Moreover, clients can arrange automated, recurring direct deposits to remain on observe towards long-term financial savings objectives. With the My Banking Direct cellular app, you’ll be able to select to arrange an automated contribution as a share of each paycheck or a set month-to-month quantity to your high-yield financial savings account, making handbook deposits one much less factor it’s a must to fear about.
Cons defined
Requires a $500 minimal opening deposit
One of many largest disadvantages to My Banking Direct’s high-yield financial savings is its $500 minimal opening deposit requirement. If that’s greater than you need to or are in a position to fund a high-yield financial savings account with, the financial institution is probably not your best option for you. For a comparability of how My Banking Direct shapes up towards opponents providing comparable high-yield charges — however that achieve this with out minimal deposit necessities — learn our assessment of the greatest high-yield financial savings accounts.
Past requiring minimal funding, a $500 deposit with My Banking Direct doesn’t lock in one of the best charges out there. To entry these, you’ll have to deposit not less than $2,500 right into a high-yield product to obtain the financial institution’s greatest fee gives.
Working firm has poor buyer evaluations
My Banking Direct doesn’t have many user-submitted evaluations itself, however the establishment is operated by Flagstar Financial institution, which does. On the time of writing, throughout 275 evaluations on the corporate’s Higher Enterprise Bureau (BBB) web page, Flagstar has a median ranking of simply 1.04 stars out of 5. The complaints highlighted on the BBB web page deal with matters starting from knowledge breaches and poor customer support response occasions to points over mortgages and escrow accounts.
Whereas My Banking Direct is a subsidiary of Flagstar Financial institution, and the person evaluations of the latter shouldn’t result in direct implications in regards to the former, such a low BBB ranking for the mum or dad firm doesn’t instill confidence within the group as an entire.
$30 price for closing the account inside 180 days of opening it
One other downside to contemplate earlier than signing up for My Banking Direct is that there’s some threat related to opening a high-yield financial savings account simply to see if it’s the appropriate match to your funds. If you find yourself not liking the financial institution’s services or products and need to shut your account, you’ll both have to attend not less than six months to take action or incur a $30 price. That cost may erase the curiosity you earned whereas trialing the financial institution’s choices within the quick time period.
My Banking Direct high-yield financial savings account choices
There are two sorts of financial savings accounts to contemplate if you wish to financial institution with My Banking Direct. The next part discusses how they evaluate.
Excessive-yield financial savings account
My Banking Direct’s high-yield financial savings account is a versatile financial savings choice that pays the next rate of interest than conventional financial savings accounts. It options:
- No month-to-month upkeep charges
- On-line and cellular account entry
- FDIC insurance coverage for balances as much as $250,000
- Computerized deposits and cellular examine deposits
- Invoice pay and Zelle
The high-yield financial savings account doesn’t require any initiation charges, however customers have to deposit not less than $500 to fund a brand new account. Remember that the rate of interest you earn in your money with a My Banking Direct high-yield financial savings account is topic to vary at any time, although the identical is true at most banks providing high-yield financial savings accounts.
Certificates of deposit
My Banking Direct additionally gives certificates of deposit (CDs). In case you’re not acquainted, a CD is a sort of financial savings account that holds a set amount of cash over a set time period whereas providing a set rate of interest. In different phrases, you conform to preserve your cash within the financial institution for a predetermined period of time in change for curiosity.
There are two benefits to selecting a CD over a high-yield financial savings account at My Banking Direct. The primary is a locked-in rate of interest. Whereas the speed for the high-yield financial savings account is variable and might be modified with out discover, the speed that you simply see at present for a CD will stay the speed that you simply earn all through the lifespan of the time period.
One other benefit to this product is that CDs supply barely greater rates of interest than most high-yield financial savings accounts. This displays your settlement to lock up your cash for a predetermined period of time. Nonetheless, if it is advisable entry your funds earlier than the tip of the CD’s time period, you’ll be charged early withdrawal penalties.
Within the case of My Banking Direct’s CDs, for those who withdraw cash throughout the first six months, you’ll sacrifice 30 days’ easy curiosity on the quantity withdrawn. In case you withdraw cash between six to 11 months after opening the CD, that penalty will increase to 90 days’ easy curiosity on the quantity withdrawn. For withdrawals starting from 12–35 months after the time period begins, the penalty is 180 days’ compound curiosity on the quantity withdrawn.
My Banking Direct high-yield financial savings account pricing
You don’t must pay something to open a high-yield financial savings account at My Banking Direct, however you’ll have to make not less than a $500 deposit to fund the account. That determine rises to $2,500 if you wish to entry the corporate’s greatest out there charges. Nonetheless, there are numerous charges you’ll be able to incur as a buyer of My Banking Direct, together with:
- $20 for returned fee processing
- $15 for each ingoing and outgoing wires that exceed switch limits
- $15 for returned mail processing (might be charged month-to-month)
- $35 for cease fee and elimination of cease fee
- $150 or the utmost quantity permitted by regulation for checking account garnishment
- $30 for closing an account inside 180 days of opening it
My Banking Direct high-yield financial savings account monetary stability
My Banking Direct is a subsidiary of Flagstar Financial institution, which falls beneath the umbrella of the New York Neighborhood Bancorp. This mum or dad firm has earned scores of BBB from Fitch and Baa3 from Moody’s, indicating the financial institution is financially secure and the danger of default is at present low, however hostile enterprise or financial circumstances usually tend to damage the corporate’s monetary stability.
New York Neighborhood Bancorp is a publicly traded firm with a market capitalization of $8.65 billion. From June 2022 to June 2023, it noticed revenues rise 266.6%, gross earnings improve 218.83% and working revenue of $3.13 billion.
My Banking Direct’s monetary stability is considered as stable for the close to time period however may change if enterprise challenges or a recession arrive. The financial institution is FDIC-insured, so even when it have been to turn into bancrupt, clients’ deposits are protected as much as $250,000.
My Banking Direct high-yield financial savings account accessibility
Availability
A high-yield financial savings account with My Banking Direct is offered to anybody who is in a position or prepared to deposit $500 into a brand new account so long as they will present a legitimate handle, Social Safety quantity or tax ID and a driver’s license or different state-issued ID.
Because the financial institution has no bodily areas, you may additionally should be prepared to handle your account on-line, through its app or over the cellphone. That stated, you’ll be able to switch funds between your My Banking Direct accounts immediately on-line or through the My Banking Direct app, although exterior transfers take one to 3 enterprise days to course of.
Moreover, My Banking Direct gives fee-free ATM withdrawals and deposits by way of AllPoint and Presto. By way of these networks, there are greater than 55,000 ATMs out there to clients throughout america.
Contact info
You’ll be able to contact My Banking Direct customer support by calling 1-866-285-1856. The corporate has a 24/7 automated answering system. Or you’ll be able to name throughout enterprise hours to talk with a human. Bankers can be found on the following occasions:
- Monday by way of Friday: 8 a.m. to eight p.m. EST
- Saturday: 9 a.m. to five p.m. EST
- Sunday: 9 a.m. to 2 p.m. EST
You may also login to your on-line account and choose “Messages” to ship a safe message to a customer support agent for those who’re already an current buyer.
Lastly, you’ll be able to ship mail to:
My Banking Direct
A service of Flagstar Financial institution, N.A.
P.O. Field 190
Hicksville, N.Y, 11801
Person expertise
This My Banking Direct’s person expertise is stable, particularly through cellular units, in keeping with on-line evaluations of the New York Neighborhood Bancorp app, which has a 4.7-star ranking out of a potential 5 on Apple’s App Retailer and a 4.3-star ranking on Google Play. The corporate’s web site can be simply navigable. It publicly shows present rates of interest for its merchandise and gives a useful resource heart, together with 10 monetary calculators and the NYCB $MART information, which educates customers on matters like how you can construct wealth, secure financial savings for youths and the newest scams along with articles and a video library.
My Banking Direct high-yield financial savings account buyer satisfaction
There are only a few evaluations of My Banking Direct out there on-line. As a proxy, we examined buyer evaluations of Flagstar Financial institution, which operates My Banking Direct. Flagstar Financial institution has a 1.04-star ranking out of a potential 5 on its BBB profile. Many evaluations complain of poor customer support and an absence of flexibility, which harms clients.
My Banking Direct high-yield financial savings account FAQs
What’s My Banking Direct?
My Banking Direct is a web-based and cellular banking establishment that provides a wide range of services and products, together with checking and financial savings accounts, CDs and the corporate’s Pay as you go Advantages Card.
Is My Banking Direct legit?
Sure, My Banking Direct is a respectable firm. It is a part of the New York Neighborhood Bancorp household of providers, which is among the largest regional banks in america.
How secure is My Banking Direct?
My Banking Direct is secure to make use of. Its mum or dad firm, New York Neighborhood Bancorp, holds secure monetary scores from Moody’s and Fitch and holds an A+ ranking from the BBB. The financial institution itself is FDIC-insured, so even when it grew to become bancrupt, the federal authorities would step in to switch as much as $250,000 of your funds.
Is My Banking Direct FDIC-insured?
Sure, My Banking Direct is insured by the FDIC.
How we evaluated My Banking Direct high-yield financial savings account
Our evaluation of My Banking Direct’s high-yield financial savings account evaluated every of the next elements:
- Charges: We thought-about the quantity My Banking Direct fees to open and preserve a high-yield financial savings account.
- Deposit necessities: We seemed on the firm’s minimal opening deposit necessities and evaluated how they influence clients’ rate of interest gives.
- Customer support: We analyzed My Banking Direct’s customer support availability and observe document.
- Cellular and on-line banking options: We scrutinized the establishment’s cellular and on-line banking options with a watch on comfort.
Abstract of Cash’s My Banking Direct high-yield financial savings account assessment
My Banking Direct is an online-only establishment providing high-yield financial savings accounts that haven’t any month-to-month charges. It gives a robust cellular banking package deal with fee-free, nationwide ATM entry and helps each cellular and recurring deposits for simplified ongoing saving. Prospects should deposit not less than $500 to open an account and $2,500 in the event that they need to entry one of the best rates of interest out there. My Banking Direct is operated by Flagstar Financial institution, which has obtained a low common person ranking, however its mum or dad firm — New York Neighborhood Bancorp — is financially secure and obtained an A+ ranking from the BBB.
