Flagstar Bank Business Account Review 2021

With few standout features or red flags, Flagstar offers a good business banking option for businesses in select states.
flagstar-bank-logo
Flagstar Bank
2.6 out of 5 stars
2.6
  • Check
    Big ATM network for a regional bank
  • Check
    Many account types and other banking products
  • X
    Availability in just 5 states
  • X
    Few relevant customer reviews

Thinking of opening a Flagstar account for your business, but not quite sure about it yet? We get you.

Trusting a bank with your money is a big commitment―which is why we’ve done the research on Flagstar and put together this review of its business accounts (and other business offerings).

Whether you’re a brand-new business looking for its first bank account, a former Wells Fargo customer whose branch was bought out by Flagstar, or an established business looking for a new home for your funds, let’s find out if Flagstar Bank could be the financial institution you’ve been looking for.

Flagstar Bank is a decent (but not standout) bank for businesses in five states

As we researched Flagstar Bank for this review, we came to two conclusions:

  • Flagstar doesn’t have any truly standout features for business customers.
  • Flagstar doesn’t have any major red flags for business customers either.

And that led us to a third conclusion:

  • Flagstar is a good bank for some businesses, but it’s not a great one.

What do we mean by all that?

Well, Flagstar has plenty of good things to offer business banking customers. It offers different tiers of checking and savings accounts, plus a nice spread of other products like loans and credit cards.

But other banks have those things too. And some other banks have knockout features, like high interest rates for checking (from BlueVine) or excellent accounts for nonprofits (from BBVA). Flagstar doesn’t.

Flagstar Bank fast facts

FeatureFlagstar Bank
Online bankingIcon Yes  Dark
Mobile bankingIcon Yes  Dark
In-person bankingIcon Yes  Dark
Brand locations158
ATMs55,000
24/7 supportIcon No  Dark
Customer service optionsPhone, email
Learn more

On the other hand, Flagstar also avoids the red flags that often pop up with other banks, like tons of government lawsuits or a heap of customer complaints about bogus fees.

In fact, the biggest downside to Flagstar is simply its small service area. Flagstar Bank offers banking services in just five states:

  • California
  • Indiana
  • Michigan
  • Ohio
  • Wisconsin

That means Flagstar isn’t an option for businesses in most states. (You can always find the best bank for business in your state instead.)

But for businesses in those five states, Flagstar offers essential banking services with no big downsides. It can get your banking jobs done without causing you lots of problems. Think of it like the daily driver of banking―reliable, even if it’s not flashy.

Sound like something you’d like? Then let’s explore the specific accounts and services Flagstar has for your business.

Flagstar Bank checking and savings accounts

Like most traditional banks, Flagstar offers both checking accounts and savings accounts for businesses.

As we discuss these banking options, keep in mind that you’ll have to visit a Flagstar branch to actually open your new account―Flagstar doesn’t offer online account applications. But after that visit, you can take care of most of your banking online with Flagstar Treasury Access (which we’ll talk more about soon).

Checking accounts

If you want a business checking account, you can choose from one of four different Flagstar accounts. The right account for you will depend on things like how many transactions you make each month, what kind of account balance you keep, and whether or not you want to earn interest.

Flagstar Bank small-business checking accounts

FeatureStandard Business CheckingEnhanced Business CheckingPremier Interest Business CheckingBusiness Analysis Checking
Min. opening deposit$100$100$100$100
Monthly fee$0.00$15.00$35.00Unlisted
Monthly fee waivable?
N/A
Icon Yes  Dark
Icon Yes  Dark
Icon No  Dark
Earns interest
Icon No  Dark
Icon Yes  Dark
Icon Yes  Dark
Icon No  Dark
Free transactions200400800N/A
Additional transaction feeUnlisted$0.50 each$0.50 eachUnlisted
Free cash depositsUp to $5,000Up to $25,000Up to $50,000N/A
Cash deposit fee$0.20 per $100$0.20 per $100$0.20 per $100Unlisted
Cash deposit fee$36.00 per item$36.00 per item$36.00 per item$36.00 per item
Open an account

Data effective 3/4/21. At publishing time, rates, fees, and requirements are current but are subject to change. Offers may not be available in all areas.

If you need a simple but affordable checking account, you’ll like Standard Business Checking. It’s a free business checking account with no monthly maintenance fee (hurray!), and it offers enough free cash deposits and transactions for smaller businesses to get by with no fees.

If you need more free transactions or cash deposits, you should upgrade to Enhanced Business Checking. It gives you twice as many free transactions and five times as many free cash deposits as Standard Business Checking does―though this account does come with a monthly fee. Fortunately, you can waive the monthly fee in one of three ways:

  • Keeping a $5,000 average account balance
  • Maintaining a $15,000 average balance across your linked Flagstar accounts
  • Using Flagstar merchant services with at least $5,000 in deposits per month

But if you keep larger account balances, you might be more interested in Premier Interest Business Checking and the perks that come with it. Aside from giving you tons of free cash deposits and transactions, this account earns interest (no listed interest rates, unfortunately) and gets you a couple free incoming domestic wires each month. Of course, this account has a higher monthly maintenance fee that takes a bit more to waive:

  • Keeping a $25,000 average account balance
  • Maintaining a $50,000 average balance across linked accounts
  • Using Flagstar merchant services with at least $25,000 in deposits per month

Businesses with big account balances may also like Business Analysis Checking. Like any analyzed checking account, you don’t get any freebies. Instead, you offset banking fees with earnings credits, which you earn based on your account balance. That can make analyzed checking accounts very affordable for businesses with high balances―but very expensive for businesses that don’t earn enough credits.

Savings accounts

Aside from checking accounts, Flagstar also has a few types of business savings accounts you can pick from. You can choose a standard savings account, money market savings account, or a business certificate of deposit (CD).

Annoyingly, Flagstar doesn’t publish interest rates on any of these accounts. In our experience, that’s usually a sign the rates aren’t that high or competitive. That may not bother you (since you get all the convenience of keeping your money at one bank), but it’s something to keep in mind as you shop for savings.

Flagstar Bank small-business savings accounts

FeatureBusiness Savings PlusBusiness Money Market AccountBusiness Certificates of Deposit
Min. opening deposit$0$50$500
Monthly maintenance fee$2UnlistedN/A
Monthly fee waivable?
Icon Yes  Dark
Unlisted
N/A
APYUnlistedUnlistedUnlisted
Transactions per month66N/A
Can use checks?
Icon No  Dark
Icon Yes  Dark
Icon No  Dark
TermN/AN/A7 days–10 yrs.
Open an account

Data effective 3/4/21. At publishing time, rates, fees, and requirements are current but are subject to change. Offers may not be available in all areas.

Business Savings Plus offers the cheapest savings option, though you can’t use checks and it likely earns the lowest interest rates. You can waive the (very low) monthly fee by keeping an account balance of $1,000.

For a (probably) higher rate and more access to your money, you can go with the Business Money Market Account. This account lets you use checks. Unfortunately, Flagstar doesn’t publish many other details about this one.

Finally, you can pick business certificates of deposit (CDs). These are the most restrictive types of savings―you can’t touch your money until the end of your term―but they often have good interest rates.

Bullhorn
Best business savings accounts

Our favorite business savings accounts come from Small Business Bank. It offers consistently high interest rates and very affordable accounts.

Flagstar online banking

We mentioned earlier that Flagstar lets you take care of banking online after you have an account (typical of most brick-and-mortar banks these days). Let’s dig a bit more into what that looks like.

As a business customer, you’ll use Flagstar Treasury Access rather than plain old Flagstar Online Banking (which is designed for personal online banking, not business online banking).

You can log in to Flagstar Treasury Access using the Flagstar Bank website, or you can download the Flagstar Treasury Access to your phone for mobile banking. (Yes, it’s available for both iPhones and Android phones.)

Once you’re in, you can manage all sorts of business banking tasks:

  • Deposit checks
  • Transfer money between accounts (one-time and recurring)
  • Send ACH transfers
  • Send a wire transfer
  • Pay bills
  • Approve transactions
  • Set up direct deposit for payroll
  • Create alerts for your business accounts
  • Export account data

Plus, you can do things like look at past transactions (including viewing check images), manage account security, and stop payments if needed.

So depending on how you use your business account, you may be able to do almost all your banking with mobile banking and online banking rather than in-person banking.

Convenient, right?

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Other small-business products and services from Flagstar Bank

The deposit accounts we’ve talked about are only part of what Flagstar has for businesses. It also has things like business loans, credit cards, and merchant services that might interest you.

Small-business financing

Flagstar Bank has a few loan products for businesses, including term loans, lines of credit, commercial real estate loans, and SBA business loans.

It doesn’t list interest rates for these loans. But since it’s a traditional lender (as opposed to an online lender), we expect Flagstar has pretty competitive interest rates―almost certainly starting well under 10%.

Flagstar Bank fast facts

Loan
Loan min./max.
Lowest listed rate
Term
Get a loan
Business loans$25,000 and upUnlistedUp to 5 yrs.
Business lines of credit$10,000 and upUnlistedN/A
Commercial mortgageUnlistedUnlistedUnlisted
SBA loansUp to $5 millionUnlistedUp to 25 yrs.

Data effective 3/4/21. At publishing time, rates, fees, and requirements are current but are subject to change. Offers may not be available in all areas.

If you’d like to get a loan or line of credit from Flagstar, you’ll have to meet some qualifications. Flagstar lends only to businesses that are at least two years old, profitable, and have enough cash flow to cover loan costs. It also looks for “satisfactory” personal and business credit (which we’d guess means a personal credit score in the high 600s).

Those are pretty typical borrower requirements for a bank. (But if you’d like a loan that’s easier to qualify for, we suggest going with an online lender like Lendio instead.)

Small-business credit cards

Flagstar Bank offers a handful of business credit cards too. You can choose from one of four Visa cards:

  • Visa Business Cash Card
  • Visa Business Real Rewards Card
  • Smart Business Rewards Visa Card
  • Visa Business Platinum Card

If you want low interest rates, stick with the Visa Business Platinum Card. It has the lowest rates of Flagstar’s cards, with the tradeoff that you don’t earn any rewards.

The three other cards all earn rewards on your spending. As you probably already figured out, the Cash Card gives you cash rewards, while the Real Rewards Card and Smart Business Rewards Card give you points-based rewards.

Miscellaneous

As a Flagstar customer, you can also get a few more business services:

  • Treasury management
  • Payroll services
  • Simplified employee pension IRA (SEP)
  • Merchant services

So by now, you should know whether or not Flagstar has the bank accounts and other banking products your business needs. But what do existing Flagstar Bank customers think of those accounts and products?

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Flagstar Bank customer reviews

It’s actually hard to get a good idea of what Flagstar business customers think about the bank.

See, Flagstar actually has decent reviews on Trustpilot and Bank Branch Locator―and 3.3 and 3.4 out of 5, respectively.1, 2 (Those are pretty good scores for a traditional bank.) But while those scores come from a few dozen customer ratings, only a handful of people left actual reviews.

One of those reviews is very positive, praising Flagstar’s great customer service. The other four skew negative, with complaints about things like Flagstar charging fees for payments by phone or troubles with a Flagstar mortgage loan.

And speaking of mortgage loans, those come up a lot on Flagstar’s Better Business Bureau profile, where it earns 1 out of 5 stars (which is pretty comparable to other banks).3 Almost all of the customer complaints there are about mortgage experiences, with just a few reviews saying Flagstar has poor customer service generally.

In other words, there’s not much from Flagstar bank account customers―much less business bank account customers.

But honestly, you might take that as a good sign. After all, it means those customers aren’t up in arms about common banking issues (like excess fee charges). So we think there’s a pretty good chance you’ll have a decent experience with Flagstar business banking.

Flagstar Bank FAQ

Is Flagstar Bank a legitimate bank?

Yes, Flagstar Bank is legitimate. It’s been around since the 1980s, has more than 100 branches in five states, and has served many banking customers.

Who owns Flagstar Bank?

Flagstar Bank is owned by the bank-holding company Flagstar Bancorp.

Does Wells Fargo own Flagstar Bank? Are Flagstar and Wells Fargo the same bank?

No, Wells Fargo doesn’t own Flagstar, and they aren’t the same bank. Flagstar actually bought out a few dozen Wells Fargo branches (in Indiana, Michigan, Ohio, and Wisconsin) back in 2018.

So some former Wells Fargo bank branches are now Flagstar Bank branches―but the two banks continue to be very separate.

The takeaway

We’ve reached the end of this review, which means it’s time to ask again if Flagstar is right for your business.

We think Flagstar could be a good fit if your business is in one of the few states it operates in, if you like the accounts and other business products it offers, and if you don’t need the sorts of standout features some other banks offer (like super competitive interest rates or niche business accounts).

If that describes your business, Flagstar probably has what you need for business banking―even if it won’t knock your socks off with cool extras.

Not sold on Flagstar just yet? Compare it to some alternatives with our rankings of the best banks for small business.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

Sources
1. Trustpilot, “Flagstar Bank.” Accessed March 4, 2021.
2. Bank Branch Locator, “Flagstar Bank.” Accessed March 4, 2021.
3. Better Business Bureau, “Flagstar Bank.” Accessed March 4, 2021.

Chloe Goodshore
Written by
Chloe Goodshore
Chloe covers business financing and loans for Business.org. She has worked with many small businesses over the past 10 years, from video game stores to law firms. Those years watching frustrated business owners try to sift through their many options gave her a passion for breaking down complex business topics. She wants to help business owners spend less time agonizing over their businesses so they can spend more time running them.
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