Alliant Credit Union increased the rate on its savings account in August. The savings account rate increased 5 basis points to 0.95% 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 rate increase at the well-liked credit union.
Thanks to vjrampello who first mentioned the rate hike in the DA forum.
Alliant issued a press release on Monday announcing the rate increase. According to Alliant President and CEO David W. Mooney:
Alliant’s membership growth and low operating expenses have put us in a strong financial position, and we’re thrilled to be able to pass on the benefits of our lean business model to our member-owners,"
"Our goal is to serve the best interests of our members, so even though the Federal Reserve has yet to implement its long-awaited interest rate increase, we’re not waiting to pay our members higher rates."
Alliant’s last two savings account rate increases were in February and October. 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.
I put together the following chart comparing Alliant’s savings account rate history to the savings account rate at Capital One 360 (formerly ING Direct) since 2011. The reason I used the Capital One 360 savings account is that it has always remained reasonably competitive. It has never been a rate leader, but it has never been at the bottom for internet banks. Thus, it’s useful to use it as a benchmark to compare others. As you can see below, Alliant’s savings account had higher rates than Capital One 360 before 2013, but in early 2013, Alliant’s rate fell to 0.70%, and it remained at this low rate until October of last year. Capital One’s rate bottomed at 0.75%, and it has remained at this level since October 2012.
Even though Alliant Credit Union’s savings account rate has not been the best in the last few years, many DA readers have remained with Alliant due to non-rate reasons such as a great ACH bank-to-bank transfer system and superb customer service. The ACH transfers initiated through Alliant are fast (typically taking only one business day), and Alliant’s ACH dollar limits are reasonably large ($100K per day for those who have been members for at least 30 days). You can also set up an unlimited number of links to your accounts at other banks or credit unions.
Alliant’s Free Checking with High Rate Option
Alliant Credit Union also has a nice interest checking account that you may want to use as your primary checking account. It’s a free checking account with a high rate option and ATM fee refunds. Alliant will reimburse their checking account holders up to $20 per month in ATM fees. For more details about Alliant’s checking account and its ATM policy, please refer to Alliant’s free checking page.
Alliant Credit Union also has a reputation of offering very competitive certificate rates. Earlier this year it had been offering rates on Jumbo certificates for terms from 48 to 60 months of 2.15% APY. The current rate for those terms is now 1.90% APY. Currently, the best deal for Alliant’s certificates is for terms from 12 to 17 months. That has a 1.20% APY. Minimum deposit to qualify for the Jumbo rates at Alliant is $25,000. Non-Jumbo rates are currently 5 basis points lower and require a $1,000 minimum deposit.
Please refer to our Alliant CU certificates rates section for the latest Alliant CD rates.
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 EpBooks.us, with a Texas ratio of 3.04% (excellent), based on March 31, 2015 data. Alliant CU has an excellent capitalization level of 11.71%, a result of holding $8.32 Billion in assets, with $974.41 Million in equity. Please refer to our financial overview of Alliant Credit Union for more details.