Alliant Credit Union is now posting the new savings and checking account rates for April. The reports of a 50 basis point rate cut were not an April Fools joke. As reported, the savings account yield fell from 2.00% to 1.50% APY. I had expected the High Rate Checking Account yield to also fall by 50 basis points, but it only fell by 25 basis points. It now has the same yield as the savings account at 1.50% APY. The checking account does require direct deposit to qualify for this rate. It also requires e-statements, but it does not require debit card usage so this remains a good checking account option for those who don't want debit card usage requirements.
The big rate cut on the savings account is disappointing. I had thought we would just see a cut of 25 basis points like what happened in the first half of 2009. Perhaps Alliant Credit Union hopes for this to be the last rate cut or at least a rate cut that won't need to be repeated any time soon.
Last week Alliant also reduced their CD rates. However, as I reported last week, the 24-month CD rate actually increased to 2.25% APY for a $25K minimum deposit.
For more info on Alliant, please refer to my Alliant Credit Union review.
Alliant is the first institution from my list of five to drop below 2.00%. In this March post, I had reviewed five institutions that were still offering 2.00% on savings accounts. However, it should be noted that 3 of the remaining 4 have various limitations.
Rate Cuts at Other Credit Unions and Banks
Alliant isn't the only credit union to cut rates. I'm afraid Pentagon Federal Credit Union cut its CD rates for April. The 3-, 4- and 5-year CD rates fell by 50 basis points.
To keep on top of rate changes, please refer to the rate change notices page. The latest rate changes are also listed on the bottom of the DepositAccounts.com front page (rightmost tab below the blog post summaries).
If you find other rate changes that I missed, please leave a comment in the Open Discussions Thread.