Alliant Credit Union reduced its CD and IRA CD rates today. All rates went down, but the largest cuts were on the long-term CDs which fell from 20 to 25 bps. Even with the cuts, the rates remain competitive. Below is the list of the new and old Alliant's Jumbo CD rates as shown at Alliant's rates page as of 10/20/2010:
- 1.50% APY 12 to 17 months (was 1.60%)
- 1.75% APY 18 to 23 months (was 1.85%)
- 1.90% APY 24 to 35 months (was 2.10%)
- 2.10% APY 36 to 47 months (was 2.35%)
- 2.50% APY 48 to 60 months (was 2.75%)
Alliant calls these their Jumbo certificate rates, but it only requires a $25,000 minimum deposit. Many other institutions require a $100K minimum for their Jumbo CDs. Rates are 10 basis points lower for the regular CDs with a $1,000 minimum deposit. These CDs are also available in IRAs (Roth, Traditional and SEP) and Coverdell ESAs.
If you open these CDs online, I have been told they limit the ACH transfer used to fund the CD from an external bank to $10,000 (this may be increased after you've been a member for a while). One way to fund the CD with a larger deposit is to first transfer the money into your Alliant savings account. Then you can call Alliant and open the CD using the Alliant savings account as the funding source. Alliant Savings Account also has the $10K ACH transfer limit. One easy way to transfer money into the savings account is by using the ACH transfer service of another bank, like Ally Bank. This way you won't have the $10K limit.
Several important details regarding Alliant's CDs can be found at Alliant's certificate page. Most of the details are under the FAQ tab. I've noted some of these below:
- 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 and above
- 10 day grace period at maturity
- No partial withdrawals are allowed
- You may elect to withdraw the dividends earned on the Certificate without incurring a penalty
- Dividends will post to the Certificate monthly on the last day of the month and at maturity
- You may have both joint owners and/or beneficiaries on your Alliant Certificate
Alliant Savings Account and High Rate Checking
We should soon know the November rates for the savings and checking account. Typically, Alliant's board approves the rates during the last part of the month. I called Alliant today, but the CSR said he wasn't informed on the November rates. The current rate for both account remains at 1.35% APY. The savings account has a long history of offering very competitive rates.
Alliant recently implemented a new and improved online banking system. Some of the notable features of Alliant's online banking includes:
- Initiate bank-to-bank ACH transfers. Transfer amounts are limited initially to $10K, but may be increased to $25K and $100K after some period of time.
- eDepositPlus allows you to deposit checks into your account using your home scanner and eliminates the need to mail checks
- Free quarterly credit scores provided by Experian (different than the FICO scores)
Some of the downsides to Alliant include:
- Only the first 8 ATM transactions per month at non-Alliant ATMs are free ($1 fee for more)
- No ATM fee reimbursements, but surcharge-free at CO-OP Network, Alliance One, Credit Union 24 and Allpoint ATMs
- Hard inquiry (by Equifax) when joining and opening the savings account
You can now qualify for Alliant Credit Union membership by becoming a member of Orphan Foundation of America (OFA). Alliant now has a special page that explains this:
Members of the OFA are eligible to join Alliant Credit Union and experience the Alliant Advantage [...] By making a $10 or greater donation to the Orphan Foundation of America, you will become a member of OFA, receive literature and other information from OFA, and qualify to join Alliant.
For the last several years, one could qualify for membership through the PTA (either national or local). Alliant lists other qualifying organizations here.
Alliant Credit Union Overview
Branches are located in Chicago, Des Plaines, and Elk Grove Township, Illinois. There are also branches in Virginia, Colorado and California.
Alliant Credit Union has an overall health score at DepositAccounts.com of 4 out of 5 with a Texas Ratio of 4.30% (excellent) as of June 2010 data. It's a large credit union with $6.05 billion in deposits. Please refer to our financial overview of Alliant Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 67955).
Searching for the Best CD and IRA CD Rates
To search for the best nationwide rates and the best rates in your state, please refer to the following sections of DepositAccounts.com: