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5.40% 24-Month / 5.40% 12-Month CD at an Illinois CU - easy membership (Alliant).
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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.
