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Alliant Credit Union

Big CD Rate Increase at Alliant Credit Union

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It has been a long time since we have seen higher deposit rates at Alliant Credit Union. I’m happy to report that Alliant Credit Union finally raised its certificate rates. Most of the rate hikes were small, but there was one big rate hike. The rate of Alliant’s long-term CDs with terms of 48 to 60 months increased by 55 basis points to 2.10% APY. This new rate applies to both the standard and Jumbo CDs. It also applies to IRAs and Coverdell ESAs. Minimum deposit is $1,000. Thanks to DA member OldGuy who mentioned this news in the forum.

One thing that has remained the same with the CDs is the early withdrawal penalty. It’s still only 180 days of dividends for CDs with terms of 2 years and longer. No partial withdrawals are allowed. Please refer to this Alliant certificates page for more details on rates and features.

Unfortunately, the rates of the savings and checking accounts didn’t change. These rates used to be very competitive compared to internet banks, but that changed in 2012. Alliant’s savings account yield was 1.00% at the start of 2012 which was competitive, but by June 2012, the yield had fallen to 0.80%. The yield fell again on February 2013. That was the last change. The rate has remained at 0.70% since February 2013. This is low for internet banks.

The rates of Alliant’s shorter-term CDs also went up, but only by 5 to 15 basis points. The most competitive shorter-term CD is the 18-month CD which has a 1.00% APY.

Alliant Credit Union became well known with DA readers several years ago due to not only competitive rates, but also nice features like an efficient ACH bank-to-bank transfer service.

Membership and Opening Accounts

There two easy ways to qualify for Alliant membership. First is through the PTA (either national or local). Second is through the Foster Care to Success (FCS) organization. According to Alliant's Foster Care to Success page:

Members of FCS are eligible to join Alliant Credit Union [...] By making a $10 or greater donation to the Foster Care to Success (FCS), you will become a member of FCS, receive literature and other information from FCS, and qualify to join Alliant.

For the full details on membership, please refer to Alliant's membership page. Those who live or work in parts of Chicagoland can be immediately eligible to join.

You can join Alliant online. Also, most accounts can be opened online and funded with an ACH transfer from your existing bank.

Alliant Credit Union Overview

Alliant Credit Union used to be United Airlines Employees’ Credit Union. That's why many of their branches are located in airports.

In addition to Chicago, Alliant Credit Union branches are located in the metro areas of Los Angeles, San Francisco, Phoenix, Denver, Houston, Washington DC and Newark. Note, some of these branches are located inside airports and are not publicly accessible.

One downside with Alliant is that it's not part of any shared branch network.

With $8.21 billion in assets, Alliant Credit Union is one of the top ten largest credit unions in the nation. It has an overall health grade at DepositAccounts.com of a B+ with a Texas Ratio of 3.44% (excellent) based on March 2014 data. Please refer to our financial overview of Alliant Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 67955).

How This CD Rate Compares

There aren’t many CDs with rates over 2% for terms under 5 years. The best deal continues to be the 49-month CD special at NASA Federal Credit Union (another easy-to-join credit union). It has a 2.25% APY.

There are no internet banks currently offering 2% on 4-year CDs. However, Synchrony Bank’s 5-year CD does have a comparable rate if it’s closed one year early. Synchrony Bank’s 5-year CD has a 2.30% APY for a $25K minimum deposit. The early withdrawal penalty is only 180 days of interest. So if it’s closed early after 4 years, the effective yield after the penalty is 2.01%. To learn more about this effective yield of CDs closed early, please refer to our CD early withdrawal penalty calculator.

The above rates are accurate as of 8/4/2014.


Related Pages: Alliant Credit Union, Washington, Chicago, Houston, Denver, Los Angeles, San Francisco Bay, CD rates

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Comments
Anonymous158593
Anonymous158593 (anonymous)   |     |   Comment #1
Alliant is one of the best CUs I've ever had, from ease of access to virtually no fees, to friendly, fast service, fee-free HSAs, even an ATM-only (as opposed to a debit) card, if that's what you want (your choice)... everything I'd want in a credit union. Good to see their CD rates going up. Now if they'll only raise their savings and HSA rates back up a bit (they used to be pretty good, now they're just average). Still a very good credit union, though.
Anonymous
Anonymous   |     |   Comment #2
You are so spot on!!  Alliant is a superb credit union.  I honestly do not know how I would manage without being a member.
dzilber
dzilber   |     |   Comment #3
This deal is much better than Toby CU 7 year CD (accounting for low EWP) if you hold it for up to 4 years
Anonymous
Anonymous   |     |   Comment #4
Acknowledged and agreed.  The advantage at Toby does not assert itself until commencement of the "out years" of their CD.  Today the Toby CD is little more, as others have asserted elsewhere, than an insurance policy.  It is a pretty cheap insurance policy, though.  ;-)  
dzilber
dzilber   |     |   Comment #5
The EWP of 2 years kills it for me (vs 180 days for Alliant). Also you will never lose a principal at Alliant if you need to close early - which is not the case for Toby. Plus I already have Alliant Supp Savings which made a CD opening a breeze. It is very difficult to get any response from Toby. These are my reasons to go with Alliant CD (I opened 48 month at 2.10% APY)
Anonymous
Anonymous   |     |   Comment #6
Same problem at Toby.  My thoughts is if you had a future problem at Toby, if you cannot contact them now, you most likely will not be able to contact them later either.  The 3% (7 year term) rate is just not enough incentive for me to get in a situation like that.
dzilber
dzilber   |     |   Comment #7
Concur. The add-on feature in enticing (Alliant doesn't have it) but Toby smells really bad
Anonymous
Anonymous   |     |   Comment #9
I am a member of both credit unions.  My membership in both commenced long before Ken posted these recent great CD deals.  Toby and Alliant are both good organizations.  There is a key difference today, though, between them:

Alliant is huge, no gargantuan, by comparison.  Alliant dwarfs Toby.  Alliant, because it is so large, is set up to handle the thousands of inquiries that stream in each day.

Toby is teeny.  They are not staffed to handle the level of member interest, and the number of inquiries, their really unusual 3% add-on CD has generated.  Toby is not evil and they don't stink.  But right now they are running somewhat behind the curve, notwithstanding  this is not their norm.  Over the years, when I have called Toby, it was always "no problemo".  I think they will get back to that, given time and opportunity.  Meanwhile, just call a branch, instead of the main number, if you have something really urgent.

Having said all that, and even though I'm a Toby participant at 3% and have spoken well of Toby, I really don't know how they will remain afloat when/if 3% money continues to flood in . . . unless rates really spike.  Thus:

I think members who have bought the Toby CD as "insurance" (and I'm one of 'em) stand a good chance of losing out.  This means I think they might shut down the add-on offer early, not that anyone will lose money.  People who go in big today will be OK unless, of course, rates rise significantly.  Hence, bottom line:

The Alliant deal might well be closer to a "sure thing" than Toby, though obviously at a lower interest rate.  Is a bird in the hand worth two in the bush??  You will decide this for yourself.
Anonymous
Anonymous   |     |   Comment #10
It  always gives me cause for concern if the CFO leaves "early."
Bozo
Bozo   |     |   Comment #8
Thanks for the heads up. I bought a 48 month today, as well.