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5.40% 24-Month / 5.40% 12-Month CD at an Illinois CU - easy membership (Alliant).
POSTED
ON BY Ken Tumin
Update 3/22/08: The top CD yield has fallen to 4.40% APY. Please check the credit union's website for the latest rates.
Update 1/25/08: The top CD yield has fallen to 4.90% APY.
Alliant Credit Union has added new jumbo certificates with a yield of 5.40% APY for terms from 12 to 24 months. The minimum deposit is $25,000. The yield for a $1,000 minimum is 5.00% APY. This is also available as an IRA certificate, SEP and Coverdell ESA Certificate.
For the last several months they had been offering a yield of 5.15% APY with a $1K minimum for the 12 and 24 month terms. It's nice to see them add these jumbo CDs with a higher yield. It's also nice to see a jumbo level at only $25,000. Many jumbo CDs have minimums of around $100,000.
Alliant has a good Certificate FAQ page. Some things to note:
Membership is open to those who live or work in several Chicagoland communities. National PTA members are also eligible. There's a $25 membership fee for the National PTA, and it appears that it's open to all. You can also be eligible via select employer groups and family. Please see the credit union's members eligibility page for more details. Membership requires a minimum deposit of $5 into the savings account.
Update 1/17/08 #2: I'm afraid MyPoints membership is not a qualification. I think this breaks the record for flip-flopping. This latest information comes to me directly from a marketing manager at Alliant. Below is what I received in an email:
So joining the National PTA remains as the best choice. As I mentioned before, it's not free. There's a $25 membership fee for the National PTA.
Update 1/24/08: Several readers have reported that Alliant does a hard credit inquiry using Equifax. ChexSystem is also used.
Several readers have reported problems with the online application process. Also, it has been reported that their daily ACH transfer limit is $10,000. You must have the money in your Share account to open the CDs online. Readers have suggested initiating multiple ACH transfers each day. Another reader suggested using FedEx (or UPS or DHL) to send them a check overnight (Remember to send to their street address since private delivery companies cannot deliver to PO Boxes.) Here is more information from Alliant regarding the online application and the alternative method of mailing it in:
On my last call with Alliant the CSR said rates typically last at least to the end of the month. But with rates this high, I wouldn't be surprised to see them end early.
Branches are located in Chicago, Des Plaines, and Elk Grove Township, Illinois. There are also branches in Colorad, California and Virginia. The credit union is federally insured by the NCUA (Charter # 67955). It's a large credit union with $4.8 billion in assets and 210,332 members. Alliant Credit Union has a rating of 3 out of 5 stars (performing) at Bankrate based on 9/30/07 data.
Update 1/25/08: The top CD yield has fallen to 4.90% APY.
Alliant Credit Union has added new jumbo certificates with a yield of 5.40% APY for terms from 12 to 24 months. The minimum deposit is $25,000. The yield for a $1,000 minimum is 5.00% APY. This is also available as an IRA certificate, SEP and Coverdell ESA Certificate.
For the last several months they had been offering a yield of 5.15% APY with a $1K minimum for the 12 and 24 month terms. It's nice to see them add these jumbo CDs with a higher yield. It's also nice to see a jumbo level at only $25,000. Many jumbo CDs have minimums of around $100,000.
Alliant has a good Certificate FAQ page. Some things to note:
- Dividends earned on a Certificate are not available for withdrawal until maturity.
- You may have both joint owners and/or beneficiaries on your Alliant Certificate
- You can open online at at their online banking interface called SkyBranch.
- 10 day grace period at maturity
- Early withdrawal penalties include: 90 days of interest for terms of 12 to 17 months, 120 days of interest for terms of 18 to 23 months and 180 days of interest for a 24 month term.
Membership is open to those who live or work in several Chicagoland communities. National PTA members are also eligible. There's a $25 membership fee for the National PTA, and it appears that it's open to all. You can also be eligible via select employer groups and family. Please see the credit union's members eligibility page for more details. Membership requires a minimum deposit of $5 into the savings account.
Update 1/17/08 #2: I'm afraid MyPoints membership is not a qualification. I think this breaks the record for flip-flopping. This latest information comes to me directly from a marketing manager at Alliant. Below is what I received in an email:
After extensive research, we have found that MyPoints membership is not a qualification for membership eligibility under our by-laws. The good news, however, is that Alliant Credit Union has a relationship with nearly 100 employers, a local community charter in certain Chicagoland Suburbs near O\x{2019}Hare Airport (that means anyone living or working in one of these qualifying communities is eligible for membership) and several other associations, including the PTA.
So joining the National PTA remains as the best choice. As I mentioned before, it's not free. There's a $25 membership fee for the National PTA.
Update 1/24/08: Several readers have reported that Alliant does a hard credit inquiry using Equifax. ChexSystem is also used.
Several readers have reported problems with the online application process. Also, it has been reported that their daily ACH transfer limit is $10,000. You must have the money in your Share account to open the CDs online. Readers have suggested initiating multiple ACH transfers each day. Another reader suggested using FedEx (or UPS or DHL) to send them a check overnight (Remember to send to their street address since private delivery companies cannot deliver to PO Boxes.) Here is more information from Alliant regarding the online application and the alternative method of mailing it in:
Alliant's online application process utilizes electronic Identity Verification (IDV) which can, at times, result in false declines. Anyone having difficulty with the online application can complete and mail a paper application, which can be found at the Application and Forms page. To ensure proper execution, make sure to complete all necessary fields and include a clear copy of valid U.S. Government issued ID (such as a Driver's License or Passport)
On my last call with Alliant the CSR said rates typically last at least to the end of the month. But with rates this high, I wouldn't be surprised to see them end early.
Branches are located in Chicago, Des Plaines, and Elk Grove Township, Illinois. There are also branches in Colorad, California and Virginia. The credit union is federally insured by the NCUA (Charter # 67955). It's a large credit union with $4.8 billion in assets and 210,332 members. Alliant Credit Union has a rating of 3 out of 5 stars (performing) at Bankrate based on 9/30/07 data.
Re: Membership in Alliant
I just checked their site and the member application (on-line form). It appears that members of any "Local PTA" can also join. To check and see if any further information was required, I clicked the "Local PTA" and that was that. Now, I doubt if anybody with kids ever DIDN'T join their local PTA, and I'm not aware they ever kick you out.
While Alliant asks for Patriot Act documents, they don't appear to ask for your PTA card.
Anyway, a flex term with 5.4% APY is almost unheard of in this rate environment. As I always say, anything over 5% is a gift.
I'll probably join before my next CD maturity date (Jan 18), so I'll let you know how it goes.
Yours,
Bozo
Yes, I was surprised to see them offering this 5.40% yield. It's a great rate in today's rate environment.
National PTA takes a credit card payment online and sends you a membership confirmation number via e-mail immediately.
I'm hoping the CU is efficient enough at processing applications to get in on this 5.4% APY for 24 months, it's tough to find a decent rate for that term.
This looks like a good credit union. Amazing 4.85% APY on your entire share savings balance provided average daily balance exceeds $100.
At some point, Alliant has to correct their application. Form W-8BEN is not the right form for permanent residents, it says that right on the form.
It really bugs me that these guys don't actually verify eligibility. I feel like a fool for paying $25 to join the National PTA.
Re: Update on Alliant Credit Union
I have been in touch with both the home office CSR and the local branch supervisor. To say their customer service is top-notch is an understatement. We're talking e-mail responses within an hour or so and a telephone response from the local supervisor/manager within minutes.
The local manager in San Mateo sent me the "paperwork" to speed my application by mail, and it's short and simple.
So, if you have a mind to park a tad of cash with Alliant, assuming their rates hold up, my experience thus far has been "go for it".
Mind you, I'm a cranky, hard-to-please person, so a thumbs-up for customer service is not something I award lightly.
Yours,
Bozo
(aka Cranky Boomer)
Re: Change in Rates
Your conversation was similar to mine with the local CSR. The board (or group that approves rate changes) meets generally once a month, or so I was told. So it is possible, though unlikely, that rates will change before the end of January. I guess I am lucky that I live within easy driving distance of a "brick-and-mortar" office of Alliant. I plan to motor on down on Friday to open up my two year certificate.
Yours,
Bozo
Plus, Alliant seems like a nice interface in general.
A qualified beneficiary must be the spouse, parent, brother, sister, child, or grandchild of the account owner(s).
It might be wise to occasionally move a dollar between your savings and checking accounts just to have activity if the only reason you opened them was to transfer money into your CD.
"We are sorry, but we cannot open an account for you at this time."
What a waste of time!
You may have better luck using another bank's ACH transfer system. The Jan 15th commenter seemed to have good luck using this method. If your bank doesn't offer ACH transfers, perhaps they could to a wire transfer (unforutantely, there's usually a fee for outgoing wires).
Don't overlook the low-tech ways of doing things.
Remember to send to their street address since private delivery companies cannot deliver to PO Boxes.
Then, looking at these comments, I noticed there was a branch local to me. I can't find any reference to it on the Alliant web site, however. So I visited them yesterday (1/23), opened up an account in person, as well as the jumbo CD. The CSR was very pleasant and helpful.
Note: Alliant doesn't only use ChexSystems, but they also do a hard credit inquiry using Equifax.
This morning (1/24) I phoned a customer service representative in order to find out about the on-line application attempts. They both went through, despite the failure messages.
I asked the CSR to close the two accounts opened on-line, and I'm trying to get in touch with their collections department (I was told to do this) in order to see what they can do about the hard inquiries.
BTW, AFAIK, you can't open up the jumbo CD on-line, just the regular one.
My conclusion is that Alliant has pretty good customer service, but their on-line application process really needs fixing, and the hard inquiry is ridiculous for a deposit account.
Still with interest rates tanking, IMO, it's worth the minor hassle and the inquiry.
BTW, thanks Banking Guy for a great site.
They both said, "oh, you mean bankrate.com". I mean, who goes to bankrate?
Well, the good news is that when it comes time to re-fi, we'll all get those lower rates since conforming loans are going to be, what, $700K+.
And I'll still be able to rate-shop the re-fi.
Yours,
Bozo