Alliant High-Rate Savings Review: A Credit Union With Big Bank Appeal

The Alliant High-Rate Savings account is one of the best savings accounts we've found. Opening a High-Rate Savings account requires membership to the credit union, which means meeting specific requirements. With membership, though, comes access to a competitive APY, low fees, and other credit union perks. Find out more about this account, including pros and cons, in this Alliant High-Rate Savings account review.

3.10% APY: Alliant's APY is far more generous than what you'd get at most big brick-and-mortar banks, and it's even competitive among the best online banks.

No monthly fees: Cutting fees is crucial to harvesting the most value from interest earnings. Alliant's High-Rate Savings account has no monthly fees as long as you elect to receive eStatements. If you need paper statements, you'll be charged a $1 monthly service fee.

Free ATM card: Including an ATM card amps up the value of banking with Alliant, as the card provides easy access for cash withdrawals and deposits at qualifying ATMs. Keep in mind that Federal Reserve Regulation D limits you from processing more than six easy withdrawals per month from a savings account.

More than 80,000 surcharge-free ATMs: Alliant has a wide network of surcharge-free ATMs. Alliant claims its number of surcharge-free ATMs exceeds that of Chase and Bank of America combined. Use the ATM locator tool on Alliant's website to find one near you.

Mobile app: A user-friendly mobile app is a necessity for an online savings account, and Alliant's highly rated app includes key features such as electronic transfers to and from external accounts and mobile check deposits.

Supplementary savings: Alliant will allow you to open as many as 19 sub-accounts associated with your High-Rate Savings account. This can come in handy when you're saving for separate goals.

NCUA insured: Finally, Alliant's High-Rate Savings account is covered by the National Credit Union Administration (NCUA). Similar to FDIC insurance for banks, your account is federally insured up to $250,000 in the event of an institutional failure.

LEARN MORE: Credit Union vs. Bank: What's the Difference?

Minimum balance requirements: You have to maintain a minimum balance of $5 to keep your account open -- and a daily average minimum balance of $100 to earn interest. While this is feasible for most people, other online savings accounts have no minimum balance requirements to earn interest.

Membership qualification: Alliant is a credit union, so it has some membership requirements that online banks don't have. More than anything, this is a modest knock on credit unions, not Alliant specifically. Luckily, it's pretty easy to qualify.

You're eligible to join Alliant if any one of the following is true:

• You're a current or retired employee of one of the many businesses and organizations Alliant partners with in the U.S.
• You're an immediate family member or domestic partner of a current Alliant member.
• You live or work in one of the communities near Alliant's corporate headquarters in Chicago.
• You become a member of Foster Care to Success (Alliant will pay your $5 membership fee).

You have several options for accessing the money in your Alliant High-Rate Savings account. Here's a closer look at them.

Deposit options

Savers have several convenient ways to start parking their cash in an Alliant savings account, including:

• Electronic transfer
• Direct deposit
• Deposits at select ATMs
• Mobile deposit
• Wire transfer
• Mailed check

Withdrawal options

Withdrawing funds is similarly convenient and can be completed by:

• Electronic transfer
• Wire transfer
• Requesting a mailed check
• ATM withdrawal

Given Alliant's membership requirements, it's worth comparing this account to other online banks that offer both high yields and low fees.

If you want an online savings account and you qualify for membership with Alliant Credit Union, Alliant's High-Rate Savings account is an excellent option with competitive rates and no monthly fees. It's particularly well suited for folks who plan to withdraw money from their savings using an ATM card. If you don't need ATM access, however, there are a few competitors with higher rates and no minimum balance requirements that might suit your needs better.