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 EpBooks.us 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.