Flagstar Bank Checking Bonus Returns with Higher Fee, Wider State Reach

Flagstar Bank has brought back its checking account bonus of $400 to $500, now available in more states following its merger with New York Community Bancorp. The offer requires a direct deposit of $1,000 to $5,000 depending on the bonus tier. Effective May 1, 2026, account holders will see higher monthly service fees. The $250 tier that previously did not require a direct deposit has been discontinued.

The bonus is forfeited if the account is closed within 180 days. The $350 checking tier carries a $25,000 balance minimum to avoid monthly fees, making it less attractive than the $400-$500 options for most customers. At current high-yield savings rates of 5%, that $25,000 would earn roughly $625 in six months, exceeding the $350 bonus.