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New Alliant Credit Union Savings Account and CD Rates - Down But Still Very Competitive
POSTED ON BY Ken Tumin
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:
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.
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.
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.)
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
I am not condoning being dishonest with Alliant.
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
Credit Unions need extra advantages so they might survive and then offer competition to regular banks.