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Update on Alliant Credit Union Rates

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Alliant Credit Union
The good news for this week is Alliant Credit Union is keeping the yield of its savings account at 4.00% APY. I've been told that their savings account rate typically remain valid for the entire month. So Alliant will remain near the top of my savings account list. Only AARP Financial Savings Center has a higher non-promo savings account rate.

Unfortunately, Alliant's CD rates didn't hold. The CD rates fell by 25 basis points. The yield for a minimum deposit of $25,000 is now 3.90% APY for terms of 1 to 2 years.

Alliant Credit Union Certificate Rate Changes as of 6/2/08:
OLD NEW
TERM APY/$1K min APY/$25K min APY/$1K min APY/$25K min
12-17mo 4.00% 4.15% 3.75% 3.90%
18-24mo 4.00% 4.15% 3.75% 3.90%

Please refer to Alliant's rate table for more rate details.

One thing of note on the rate table is that Alliant still offers 5.15% APY on its Health Savings Account (HSA). Another plus with this account is that there are no fees for account opening, maintenance or transactions. This government HSA page has all the details about HSAs. In a nutshell, HSAs enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis. You must be covered by a High Deductible Health Plan (HDHP) to be able to take advantage of HSAs. One reason why Alliant probably offers a higher rate on the HSA is that there's a limit on how much an individual can contribute each year.

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 $5.3 billion in assets and 213,782 members.

Thanks to the readers who mentioned these CD rate changes in the comments.
  Tags: savings account, Alliant Credit Union

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Comments
4 comments.
Comment #1 by Sofa King Frustrated (anonymous) posted on
Sofa King Frustrated
Sadly, Bernanke was on TV yesterday and pretty much said the economy is still in bad shape. He expressed solidly that the Fed Fund Rate will not be going up anytime soon. The rate will either remain unchanged or it may even be lowered more.

So, I think we can probably assume that Alliant CU will lower their rate again eventually, especially once they see that 3.8% is the highest rate one can get from anyone else.

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

As the saying goes, "it is what it is." I'm a bit of a contrarian on rates, however. Looking at the trends in the bond market, the FED's renewed interest in inflation (Ben's speech at Harvard), the jump in 5 year CDs to 5% (Wachovia, e.g.), I suspect we may have seen the bottom in interest rates.

I can live with 4%, plus or minus. But I'm staying short, either in CDs or in Alliant's savings account. No more than a year when rolling over any CD.

Yours,

Bozo

1
Comment #3 by Sofa King Frustrated (anonymous) posted on
Sofa King Frustrated
Bravo, Bozo.

Sounds good.

1
Comment #4 by Vickifool (anonymous) posted on
Vickifool
There are TWO Alliant Credit Unions.
http://www.alliantcu.com/ is NOT the one with the good rates.

1