Alliant Credit Union Just Raised Its Savings Rate. Should You Take Advantage?

This is a generous savings account APY but should you sign up?

Alliant Credit Union offers a high-rate savings account, like many banks do. The credit union recently raised its APY to 2%. This rate is available to anyone who maintains an average daily balance of $100 or more and the competitive rate is paid on all of the money in the account. 

With the credit union raising its rates, you may be wondering if you should take advantage of the chance to earn a higher APY. You could do this by opening an Alliant Credit Union account for the first time, or by adding more money to your existing high-rate savings account if you are already an Alliant customer.

But, while you can take advantage of this opportunity, should you? 

Is it a good idea to open an account with Alliant Credit Union?

If you want to take advantage of the high rates now offered if you have an Alliant savings account, you would need to be a member of the credit union. In order to be eligible to join, you must do one of the following:

• Be a current or retired employee of a company that is an Alliant partner, or be an immediate family member of someone who is a current or retired employee of such a company. 
• Live and work in a community near Alliant's corporate headquarters in Chicago.
• Join Foster Care to Success and become an Alliant member through this connection. There's a one-time $5 membership fee to join Foster Care to Success but Alliant will pay it for you.

Becoming an Alliant member is an extra hoop to jump through just to open a savings account, but this is part and parcel of using a credit union instead of a bank. Membership is always going to be required, but it comes with perks including generous rates on savings accounts and often affordable borrowing options since credit unions are member-owned non-profits. 

If you are comfortable joining the credit union and you can meet the $100 average daily balance requirement that Alliant requires in order to be eligible for the 2% rate, then it may be worth opening an account to get the 2% APY rate on your savings. Alliant offers many perks including fee-free ATM access and a full-featured mobile banking platform. 

And finance expert Suze Orman has recommended Alliant Credit Union in the past and has even featured Alliant's Ultimate Opportunity Savings Account, offering a promotion that enables you to get a $100 bonus deposit if you deposit at least $100 monthly for a year. 

Is opening an Alliant savings account right for you?

To decide whether you want to take advantage of Alliant Credit Union's high-yield savings account, you should compare this bank's features to what your current savings account provider is offering.

If you are currently paying a monthly maintenance fee or if you are earning a rate well below 2%, then it may be worth making the switch to Alliant. But if you are earning close to or the same amount with your existing savings account provider and not paying unnecessary fees, sticking to the status quo may make the most sense for you.