Dedicated to Deposits: Deals, Data, and Discussion

New Alliant Credit Union Savings Account and CD Rates - Down But Still Very Competitive

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Alliant Credit Union
Alliant Credit Union lowered rates on its savings account and certificates today, but the rates remain very competitive. The savings account yield fell from 4.35% to 4.00% APY. I've been told that their savings account rate typically remain valid for the entire month. The top yield on their 12-to-17 month certificate fell from 4.40% APY to 4.15% APY. This requires a minimum deposit of $25,000. However, the yield for the $1,000 minimum remained the same at 4.00% APY. The yield for $25K minimum deposits remained the same for the longer terms (4.15% APY). The yield for the $1K minimum deposits actually increased from 3.75% to 4.00% APY. The table below shows how the rates have changed:

Alliant Credit Union Certificate Rate Changes as of 5/1/08:
OLD NEW
TERM APY/$1K min APY/$25K min APY/$1K min APY/$25K min
12-17mo 4.00% 4.40% 4.00% 4.15%
18-24mo 3.75% 4.15% 4.00% 4.15%

There's one extra little perk for those not yet an Alliant online banking user. You can earn up to $10 in their Go green promotion. You can earn $5 for enrolling in online banking and use it 3 times by May 31st and $5 when you access eStatements and optout of paper statements. The promotion ends 5/31/08.

For details about the savings accounts, certificates and membership qualifications, please refer to my previous Alliant Credit Union review. Anyone can be qualifed to join via membership in the National PTA.

Branches are located in Chicago, Des Plaines, and Elk Grove Township, Illinois. There are also branches in Colorado, California and Virginia. The credit union is federally insured by the NCUA (Charter # 67955). It's a large credit union with $4.9 billion in assets and 211,631 members.

  Tags: CD rates, savings account, Alliant Credit Union

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Comments
6 Comments.
Comment #1 by Michael (anonymous) posted on
Michael
Alliant CU is paying 3.93% (with a 4% Yield) on their savings account, as Banking Guy has verified the changeover this morning.

The question, of course, on every Alliant customer's mind: If the Fed ceases its interest rate cuts, will Alliant also cease its own interest rate reductions?

I can live with 3.93% on my savings account. It's a good account to have along with their free checking. I can instantaneously transfer funds from my savings to my checking, which makes this one of the most attractive regular (non-reward) checking accounts out there.

So, Alliant, if you are listening, I demand that you not go any lower than 3.93%. Thank you.

And thanks again to Banking Guy. (Is there anyone more thorough than Banking Guy? No. Anyone posting the info faster as soon as info is available? No.)

1
Comment #2 by Bozo (anonymous) posted on
Bozo
To: All
Re: Alliant

I suppose where Alliant's rates go from here are based on the Fed, to some degree, but also on their success in luring new members. Remember now, this was a credit union founded on United Airlines employees. As some might recall, United Airlines fell on hard times a few years back, declared BK, and all those "high-earner" UA Captains (including the retirees) took a major haircut. This had an impact on Alliant's business plan, to put it mildly.

So, to stay afloat, it expanded its membership base (PTA, anyone?) and increased its deposit rates, while lowering its borrowing rates. The puny profit margins may not last, but it is wise to take advantage of their rates and terms while you can. Nothing lasts forever.

Yours,

Bozo

1
Comment #3 by Anonymous posted on
Anonymous
The national PTA is fine, but it's expensive to join. I joined Alliant on the basis of first joining my local PTO. My total cost to join: $1. I felt just a tiny bit guilty, so I sent them an extra four bucks voluntarily for a grand total of $5. I am the very LAST of the big time spenders. Still bottom line, I was happier supporting my local PTO than I would have been sending twenty-five bucks to some national organization.

1
Comment #4 by Chester (anonymous) posted on
Chester
Alliant does not check if you are telling the truth about being a member of the PTA. You simply put that down on your application and they take your word for it. They do not ask for a membership number. They do not verify.

I am not condoning being dishonest with Alliant.

1
Comment #5 by Bozo (anonymous) posted on
Bozo
To: All
Re: Honesty in your member application

I do not condone fraud in credit union apps either. I was just noting that membership in a "local PTA" (which seems easy enough to get with a phone call) is adequate for Alliant.

A larger issue is the preferential treatment (in the tax laws) credit unions receive. Banks have correctly noted that credit unions are merely banks under another color, and should be taxed as banks are. For many years, credit unions were very tightly controlled regarding membership. Their tax advantaged status was warranted as a result. Now, however, if you are a friend of a friend of a relative, or a member of a "local PTA", "come on down" as they said in the gameshow. I.e., credit unions are merely banks, selling banking products, and should be taxed as such.

At least that's the argument the American Bankers Association makes, with some merit might I add.

Yours,

Bozo

1
Comment #6 by Trevor Plantagenent (anonymous) posted on
Trevor Plantagenent
The ABA is tantamount to the Terrestrial Radio Broadcasters Association that complains about satellite radio Sirius and XM.

Credit Unions need extra advantages so they might survive and then offer competition to regular banks.

1