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Rate Hike at Alliant CU, But Lower ACH Transfer Limit

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Alliant Credit Union increased the rate on its savings account in November. The savings account rate increased 5 basis points to 1.00% APY. It’s the third rate increase in the last year. The new rate doesn’t quite make Alliant a rate leader for internet banks, but it’s nice to see another addition to the 1% club.

Thanks to DA member fife who first mentioned the rate hike in the DA forum.

Alliant’s last two savings account rate increases were in August and February. For much of 2013 and 2014, Alliant’s savings account rate was stuck at 0.70% which was a little low when compared to savings account rates at internet banks. Alliant Credit Union had very competitive savings account rates for several years before 2010. During that time the rate was close to the leading savings account rates at internet banks. Things changed at Alliant a few years ago. The savings account rate went down more than it did at several internet banks.

Lower ACH Transfer Limit

Alliant recently changed its policy regarding ACH transfer limits which makes it more difficult for members to electronically move their money out of Alliant. The maximum amount for outbound ACH transfers has been reduced from $100,000 to $25,000 per day. The inbound ACH transfer limit is $100,000 per day. I was told by an Alliant CSR that some members may have lower limits.

Many DA readers had been using the Alliant savings account as their hub account that they used to fund CDs and other deals that pop up. It was useful as a hub account since the ACH transfers are fast and there’s no limit on the number of linked external accounts. With the new outbound transfer limit, many will be forced to find another hub account.

For those who may have to do multiple outbound transfers to transfer out more than $25K, make sure you don’t do more than six withdrawals per statement cycle. Due to federal regulations, all savings accounts are limited to no more than six electronic withdrawals per statement cycle. If you don’t want to be limited in the number of withdrawals, you may want to consider Alliant’s Free Checking with High Rate Option.

Availability

Headquartered in Chicago, Alliant Credit Union offers a variety of ways to join.

Residency: Individuals who live, work or worship in 20 Chicagoland communities.

Employment: Employees and retirees of hundreds of Qualifying Companies.

Membership: Members of 38 different organizations.

Other: Any member of Foster Care to Success (FCS), regardless of residency or employment status. Individuals can join FCS with a one-time $10 donation and Alliant CU's website provides a link to FCS to facilitate joining.

Complete details about joining Alliant CU can be found on the Membership Eligibility page.

Joining Alliant CU can be done online, via mail (application available for download), by phone, or in person at any of 14 branches located in Arizona, California (5), Colorado, Illinois (3), New Jersey, Texas (2), and Virginia.

N.B. As Alliant CU was originally the United Airlines Employees Credit Union, several of the branches are located in airport terminals and are not accessible by the general public. Also, Alliant CU is not part of any shared branch network.

Credit Union Overview

Alliant Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 3.00% (excellent), based on June 30, 2015 data. Alliant CU has an excellent capitalization level of 11.72%, a result of holding $8.37 Billion in assets, with $981.54 Million in equity. Please refer to our financial overview of Alliant Credit Union for more details.
Related Pages: Alliant Credit Union, Chicago, savings account
Previous Comments
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Anonymous
  |     |   Comment #1
The new Alliant $25,000 outbound Xfer limit was announced a while back.  It is a catastrophe for the reasons Ken states, sending many back to the days of hated (and expensive) overnight mail and (ugh!!) paper checks!

But Alliant otherwise remains a good place for a hub account.  Does anyone know of an alternative financial institution offering both overnight delivery of ACH funds and the old $100,000 outbound limit?
  
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2
Anonymous
  |     |   Comment #7
When I get checks mailed for closing accounts I usually get the check in a few days. I just closed an Ally CD last Tuesday and I'm still waiting for the check. Called Ally and they advised me that it takes 10-14 days starting the day after the account is closed. Ally is offy list. They don't pay the highest rated anymore. The rep said I could have paid more for "expedited" service.
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4
Anonymous
  |     |   Comment #2
Do these new ACH limits apply only to the savings account?

Or to the checking account as well?
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Anonymous
  |     |   Comment #6
Both.  The limits are regarding per diem ACH transfer amounts when the transfer is initiated at Alliant, regardless of the particular Alliant account(s) involved in the transfer.
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2
Anonymous
  |     |   Comment #3
For me, it is a 25K limit on outbound transfers from both checking and savings to other institutions.  It is a 100K limit for inbound transfers from other banks to either checking or savings.

You can test it yourself by going to the Transfer tab on alliant's site and then attempting to put in a transfer slightly above the stated limits.  It will flash up in red a warning that you are "over" the daily limit and then tell you what is your limit.
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Anonymous
  |     |   Comment #4
Does the 25k limit apply only when initiating on Alliant's end? What if ANOTHER institution tries to pull funds from Alliant? For instance, what if you ask CitiBank or Fidelity or Vanguard to pull (initiated from THEIR end) more than $25k from an Alliant account. Will it go through?
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Anonymous
  |     |   Comment #5
Alliant limits apply only to ACH transactions initiated from (at) Alliant.  If you initiate ACH transactions elsewhere, other, different, limits might apply, as (and if) imposed by the financial institution where you initiate the transaction.
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me1004
  |     |   Comment #8
The new ACH limits are especially bad at Alliant because Alliant is NOT part of  the credit union shared branch system like most credit unions are (under that system, you can use shared branches of other credit unions to make transactions between credit unions -- I have used that to immediately --   which is even faster than overnight -- transfer money from one credit union to another using a shared branch from a third credit union, all free and in large amounts).

Alliant never joined the shared branch system in order to keep its costs down and give better rates accordingly. Instead, it provided for the ACH transfers and good free ATM  access and higher rates. Now  we are getting neither as high a rate as previusly nor the ACH system to make up for no shared branch system. Oh,  the savings rate is decent, but as Ken points  out, it no longer is a rate leader. And the CD rates suck  -- gee, I originally went  to Alliant for its CD rates.

Alliiant is now  putting  more of  a squeeze on customer. It seems customers-members no longer come  first with Alliant, its attitude has changed. This hinderance to using the ACH is designed  to instead push customers to pay the high fee for federal funds wire instead. Alliant  is  now not only putting on the squeeze but also putting on the charge.
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LR
  |     |   Comment #15
While they are not technically part of Shared Branching, you still have access to it if needed, as it can be extended as a professional courtesy by the system to any credit union for a one-time transaction upon request. I needed an official check immediately last year to secure an apartment, and I am nowhere near an Alliant branch. I called Alliant, they quickly made arrangements with the nearest Shared Branch location to me, and I was able to pick up the check the same day. 
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Anonymous
  |     |   Comment #9
Alliant continues, in my view, to be a good place to do business.  They had a problem with abuse of the (former) $100,000 outbound ACH limit by a small number of dishonest members.  Regrettably, they decided to solve that problem using nuclear technology.  Thus, as so often happens when there is dishonesty, large numbers of honest Alliant members ended up paying dearly for the dishonesty of a few.  
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3
Anonymous
  |     |   Comment #10
I agree. The 25k ACH limit has impacted me directly, along with their excessively strict Regulation D limits per month (for some reason, another large credit union I belong to only places the Regulation D limits on their money-market accounts, NOT their normal share savings accounts like Alliant does -- and yet another credit union mentions fees for excessive Regulation D transactions, implying that they'll allow more than 6, but with a small fee?) but I still think Alliant is a great place to do business. Especially if you have a little money just sitting around, but wanting to keep it liquid. Sure there are other places that offer slightly higher rates for normal accounts (1.10 or 1.15, compared to 1.10) but they seem to have a lot of fee traps, for things such as incoming (!) wires, and Alliant is very fee-friendly. I with they'd let up on their ACH and Regulation D limits, but they're still a great place to bank.
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me1004
  |     |   Comment #11
I've heard nothing of this abuse of the ACH  transfers before -- can you tell us what that was about? Gee, I can't even think of how it could be abused, so  I'm quite interested in hearing about it and how it lost them a lot of money -- after all, you can only transfer out cleared money, cash, although yes, that  money, if deposited by check or other, can be pulled back from its original source for, what is it 30 days. If it was just a matter of them using it a  lot, I don't consider frequent use to be abuse, and in fact, a concern like that could have been addressed by simply limiting how many ACH  transfers you can make in a month.

To my mind, this is just adding a fee (pushing people to the fees for fed funds wire instead) without admitting it. I've noticed Alliant in the past being very                tricky with their communications, such as when they set the morning deadline for guaranteeing ACH overnight deliver that night -- prior to that I had used their ACH  and initiated at the end ofthe day and the money was there the next morning. They passed that off as a speed up when it really was a slowdown, and everyone seems to have bought the story that they speeded it up.
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Anonymous
  |     |   Comment #12
#9    Not so much as the MS/Manipulative Spending on that other site.
But still, dont think many Alliant users used Any of there other services other than
to HUB large amounts
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Anonymous
  |     |   Comment #13
Sure.  First, I used the (old) Alliant system for many years and never once cheated or abused the privilege.  But there was one time (only) that, strictly through error, a small ACH I did (amount was under $5) was not paid by the institution where the money was supposed to be and where I told Alliant the money would be.  I had to pay a penalty, of course, but more important the experience was an education for me.  You see, Alliant credited the (albeit non-existent) ACH money to my account quickly and straightaway, as they always do.  It was only a few dollars but it could have been big bux.  Point is, there was more than adequate time for me, equally quickly, to ACH those same funds out of my account;  because Alliant did not realize instantly the funds were not good.  I guess it takes a short while for such shortages to work through the system and become recognized.  And Alliant allows us to move funds in and out so quickly there is not cushion for timely discovery of shenanigans.  Now in my case it was an honest error and very small money.  But for a dishonest person . . . . . 
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Anonymous
  |     |   Comment #14
I don't see that using Alliant's (or any bank/CU) ACH to move my money where I think it will earn better is any kind of abuse or dishonesty.    Now I will only use Alliant's ACH to move smaller amounts, and I'll use Ally's ACH, which has much higher limits anyway, to move larger amounts.   Recently for the Northwest FCU CD add-on special, I used Ally's ACH to pull large amounts out of Alliant and then to push the money over to my NWFCU savings.   I don't think Alliant has accomplished anything, other than bad customer relations, by suddenly creating much lower ACH outgoing limits for its long time members.    This kind of action by them will not keep money in their CU as they might think.
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Gaius Gracchus
  |     |   Comment #16
Wrong. Outbound ACH for the majority of members is 2500.00. It is only a few members that have been with them a long time that have the $25000.00 daily limit.
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