Comments on: Alliant Credit Union: Bumpy Ride to High Yield http://thefinancebuff.com/alliant-credit-union-bumpy-ride-to-high-yield.html like a friend telling you about money ... Fri, 10 Feb 2012 17:31:35 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: Len http://thefinancebuff.com/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-6434 Len Thu, 14 Apr 2011 02:26:09 +0000 http://thefinancebuff.com/2009/12/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-6434 Your table seems to indicate that ING Direct interest rates apply to the marginal balance above the $50k and $100k thresholds. ING's site now states that rates for Electric Orange paperless checking instead apply to the full balance: "If your balance is $49,999.99 or less, you earn an annual percentage yield of 0.25% . If your balance is between $50,000-$99,999.99, your entire balance earns 1.10% APY; and if your balance is $100,000 or more you will earn 1.15% APY on your entire balance! (Rates variable, as of 02/23/2011 I realize your original article is dated at this point, but as is typical, it still stands as a valuable reference for readers. Your table seems to indicate that ING Direct interest rates apply to the marginal balance above the $50k and $100k thresholds. ING’s site now states that rates for Electric Orange paperless checking instead apply to the full balance:

“If your balance is $49,999.99 or less, you earn an annual percentage yield of 0.25% . If your balance is between $50,000-$99,999.99, your entire balance earns 1.10% APY; and if your balance is $100,000 or more you will earn 1.15% APY on your entire balance! (Rates variable, as of 02/23/2011

I realize your original article is dated at this point, but as is typical, it still stands as a valuable reference for readers.

]]> By: John Q. Public http://thefinancebuff.com/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-4036 John Q. Public Mon, 17 May 2010 01:54:30 +0000 http://thefinancebuff.com/2009/12/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-4036 What I appreciate most about Alliant is the fact that I am not nagged to buy a boatload of crap every time I call them. And they actually speak English! What I appreciate most about Alliant is the fact that I am not nagged to buy a boatload of crap every time I call them. And they actually speak English!

]]> By: Mark http://thefinancebuff.com/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-3458 Mark Sat, 13 Feb 2010 05:15:13 +0000 http://thefinancebuff.com/2009/12/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-3458 It must be a new thing, but apparently you can now also join by making at least a $10 donation to the Orphan Foundation of America, which is what I did seeing as how I live in New Mexico (http://www.alliantcreditunion.org/membership/eligibility/ofa/). I've only just completed the sign-up process and am waiting for all my stuff in the mail so that I can access the online banking. I am quite excited to switch over all my accounts from my current bank entirely to Alliant. I love that they have every sort of account readily available and easy to open, including IRAs, HSAs and ESAs. With my current/old bank, it was such a hassle to open these special accounts, if they were even available. Before I found Alliant, I was going to have to have accounts spread across two or three banks to get decent rates; one bank for regular banking, one for IRAs and another still for an HSA. It must be a new thing, but apparently you can now also join by making at least a $10 donation to the Orphan Foundation of America, which is what I did seeing as how I live in New Mexico (http://www.alliantcreditunion.org/membership/eligibility/ofa/). I’ve only just completed the sign-up process and am waiting for all my stuff in the mail so that I can access the online banking. I am quite excited to switch over all my accounts from my current bank entirely to Alliant. I love that they have every sort of account readily available and easy to open, including IRAs, HSAs and ESAs. With my current/old bank, it was such a hassle to open these special accounts, if they were even available. Before I found Alliant, I was going to have to have accounts spread across two or three banks to get decent rates; one bank for regular banking, one for IRAs and another still for an HSA.

]]> By: Craig http://thefinancebuff.com/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-3303 Craig Mon, 25 Jan 2010 18:44:34 +0000 http://thefinancebuff.com/2009/12/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-3303 I've had my Alliant Credit Union accounts (Share Savings and Checking) for well over a year and have been very satisfied with them...The have a reputation for maintaining high rates in the interest rate environment (whether up or down).... The access to over 75,000 surcharge free atms nationwide is a big plus and their Customer Service is also excellent.... I've never been a big fan of the "Wescom CU Online Interface" that Alliant has used over the years...however in that regard, i have good news for you...Alliant is redesigning it's Online Banking Interface and this is being done "in-house" as opposed to the often usual way of using a 3rd party provider... It's currently scheduled to be launched in May of the year and should be a vast improvement over what they are using now..Also, since it's "in-house" they will have total control of making changes to it as is needed from Customer Feedback.... So, their one weak point hopefully will soon be vanishing and replaced by a much improved Online Banking experience.... PS: and the rate has been confirmed for February....it's remaining at 2% for Share Savings and 1.75% for the Interest Checking... I’ve had my Alliant Credit Union accounts (Share Savings and Checking) for well over a year and have been very satisfied with them…The have a reputation for maintaining high rates in the interest rate environment (whether up or down)….

The access to over 75,000 surcharge free atms nationwide is a big plus and their Customer Service is also excellent….

I’ve never been a big fan of the “Wescom CU Online Interface” that Alliant has used over the years…however in that regard, i have good news for you…Alliant is redesigning it’s Online Banking Interface and this is being done “in-house” as opposed to the often usual way of using a 3rd party provider…

It’s currently scheduled to be launched in May of the year and should be a vast improvement over what they are using now..Also, since it’s “in-house” they will have total control of making changes to it as is needed from Customer Feedback….

So, their one weak point hopefully will soon be vanishing and replaced by a much improved Online Banking experience….

PS: and the rate has been confirmed for February….it’s remaining at 2% for Share Savings and 1.75% for the Interest Checking…

]]> By: Aaron http://thefinancebuff.com/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-3155 Aaron Tue, 05 Jan 2010 22:34:53 +0000 http://thefinancebuff.com/2009/12/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-3155 Thanks! Thanks!

]]> By: TFB http://thefinancebuff.com/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-3149 TFB Tue, 05 Jan 2010 18:38:45 +0000 http://thefinancebuff.com/2009/12/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-3149 Aaron - Thank you for the clarification. I will edit the post. You can still pay a one-time $3 fee to join a PTA though. Here's a <a href="http://www.fatwallet.com/attachments/5105_PTA_Reg_Form_2008_2009_English_and_Spanish.pdf" rel="nofollow">PTA membership form</a> (via FatWallet Finance). Aaron – Thank you for the clarification. I will edit the post. You can still pay a one-time $3 fee to join a PTA though. Here’s a PTA membership form (via FatWallet Finance).

]]> By: Aaron http://thefinancebuff.com/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-3148 Aaron Tue, 05 Jan 2010 17:56:31 +0000 http://thefinancebuff.com/2009/12/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-3148 This statement needs some clarification: "Now anybody can join if they live or work near Chicago..." Living and working in Chicago, I read this and became very interested in joining. I even spent about half an our reading more when I came to this page [http://www.alliantcreditunion.org/membership/eligibility/], which states: Who can join.... Any person who lives or works in the following Chicagoland communities: Arlington Heights, Bensenville, Des Plaines, Elk Grove, Elmhurst, Franklin Park, Harwood Heights, Itasca, Mount Prospect, Northlake, Niles, Norridge, Park Ridge, Prospect Heights, River Grove, Rolling Meadows, Rosemont, Schiller Park, Wood Dale and Chicago O'Hare Airport property. So, residents of the city of Chicago aren't eligible unless they meet other requirements. If you don't live/work in the NW suburbs of Chicago, tough luck. This statement needs some clarification: “Now anybody can join if they live or work near Chicago…”

Living and working in Chicago, I read this and became very interested in joining. I even spent about half an our reading more when I came to this page [http://www.alliantcreditunion.org/membership/eligibility/], which states:

Who can join….

Any person who lives or works in the following Chicagoland communities: Arlington Heights, Bensenville, Des Plaines, Elk Grove, Elmhurst, Franklin Park, Harwood Heights, Itasca, Mount Prospect, Northlake, Niles, Norridge, Park Ridge, Prospect Heights, River Grove, Rolling Meadows, Rosemont, Schiller Park, Wood Dale and Chicago O’Hare Airport property.

So, residents of the city of Chicago aren’t eligible unless they meet other requirements. If you don’t live/work in the NW suburbs of Chicago, tough luck.

]]> By: John http://thefinancebuff.com/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-3058 John Sun, 20 Dec 2009 17:43:25 +0000 http://thefinancebuff.com/2009/12/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-3058 Regarding Alliant's insurance, you are correct that it is currently insured by the NCUA, which (as with the FDIC) is backed by the "full faith and credit" thingee. However, one item you should note. Alliant is not a federally-chartered credit union; it is a state-chartered credit union (in Illinois). As such, it may elect to have American Share Insurance (ASI), a private insurer not backed by the "full faith and credit" thingee. Mind you, a change from the NCUA to ASI would have to be announced to the members of the credit union and no such announcement has been made (or, for that matter, is contemplated, to my knowledge). In addition, an arcane regulation of the credit unions' governing organization (it's called the NCUISF or something like that) provides that you can break a CD penalty-free if there is a switch from NCUA to the ASI. Moreover, it is my understanding that a certain percent of the credit union members must acquiesce in the switch; it can't be done by the Board unilaterally. Why would a credit union make the change? Money. The NCUA is tacking on higher premiums to cover corporate credit union losses. ASI doesn't have that exposure. Bottom line: higher NCUA premiums will cut into Alliant's ability to offer those stellar rates we have become accustomed to. I noticed the rate on the 2 year CD recently fell 45 basis points (2.55 to 2.10). Since there's no particular advantage to going out a year longer for the same rate, Alliant's savings account (at 2%) or one year CD (at 2.10%) look like the best alternative for "short" (up to two year) money at this point. Just my $.02. Regarding Alliant’s insurance, you are correct that it is currently insured by the NCUA, which (as with the FDIC) is backed by the “full faith and credit” thingee.

However, one item you should note. Alliant is not a federally-chartered credit union; it is a state-chartered credit union (in Illinois). As such, it may elect to have American Share Insurance (ASI), a private insurer not backed by the “full faith and credit” thingee.

Mind you, a change from the NCUA to ASI would have to be announced to the members of the credit union and no such announcement has been made (or, for that matter, is contemplated, to my knowledge). In addition, an arcane regulation of the credit unions’ governing organization (it’s called the NCUISF or something like that) provides that you can break a CD penalty-free if there is a switch from NCUA to the ASI. Moreover, it is my understanding that a certain percent of the credit union members must acquiesce in the switch; it can’t be done by the Board unilaterally.

Why would a credit union make the change? Money. The NCUA is tacking on higher premiums to cover corporate credit union losses. ASI doesn’t have that exposure.

Bottom line: higher NCUA premiums will cut into Alliant’s ability to offer those stellar rates we have become accustomed to. I noticed the rate on the 2 year CD recently fell 45 basis points (2.55 to 2.10). Since there’s no particular advantage to going out a year longer for the same rate, Alliant’s savings account (at 2%) or one year CD (at 2.10%) look like the best alternative for “short” (up to two year) money at this point.

Just my $.02.

]]> By: TFB http://thefinancebuff.com/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-3023 TFB Sun, 13 Dec 2009 17:44:43 +0000 http://thefinancebuff.com/2009/12/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-3023 Jim - Look at the bottom of their web site. Accounts with a federal credit union are insured to the same limit by NCUA as bank accounts by FDIC. Jim – Look at the bottom of their web site. Accounts with a federal credit union are insured to the same limit by NCUA as bank accounts by FDIC.

]]> By: Jim http://thefinancebuff.com/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-3022 Jim Sun, 13 Dec 2009 15:20:57 +0000 http://thefinancebuff.com/2009/12/alliant-credit-union-bumpy-ride-to-high-yield.html#comment-3022 Does Alliant have FDIC or some other Federal backing that is similar? Where can I learn about this? I looked on their site but couldn't find anything. Thanks! Does Alliant have FDIC or some other Federal backing that is similar? Where can I learn about this? I looked on their site but couldn’t find anything.

Thanks!

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