Posting here now a warning, a heads up if you will, for Alliant members who pay their taxes with their Alliant Visa Signature card:
This has occurred to me based on postings on the thread entitled “Federal and state tax relief as outcome of the pandemic”. What we see evolving over there is a coming together, a confluence if you will, of payments now all rescheduled to July fifteenth. This includes both Federal and state tax payments, as well as Federal and state estimated tax payments. There is a big payment log jam heading our way, scheduled to be here on July fifteenth.
Trouble is the recent Alliant rule limiting our 2.5% rewards to just $10,000/billing cycle of spending. That would be less important were all these tax payments not now scheduled to hit us at once, on one day.
Absent the $10,000 limitation I would be planning simply to pay everything right after my statement closes on July fourteenth, or whatever the date is for July. But now, with the log jam and not wanting to exceed the $10,000 ceiling, it’s gonna take a bit of extra planning to get this right.
I do have a bunch of 2% cards I could use to share the load. But I’d prefer Alliant’s 2.5% reward if I can finagle a way to snag it.
Just because you can wait until July 15 doesnt mean you have to. You could pay $10k in each of April, May, and June as well. I’m not sure how much planning is required?
Well, obviously. But I personally will only resort to payment in advance if unable to locate other, more palatable, options.
Many persons instinctively pay on a “just in time” basis. Under normal circumstances, in normal times, that option would be fine. But with the changes now a reminder about an upcoming log jam is appropriate. All the more so because this change by Alliant is very recent and might not be front of mind for many. Many Alliant members have not run into this limit before, since it did not exist prior.
I think Alliant will still stay “semi” competitive. Given that many online bank accounts’ rates are still clustered around 1.5%, I think Alliant wouldn’t drop below 1.0%. My guess is a rate of 1.2% on 4/1.
On the topic of Alliant, I notice that you can setup overdraft for the checking account – when your checking account does not have enough funds to satisfy a debit (ACH,check,ATM, etc), it can overdraft from your designated savings account. There is apparently no fee for the overdraft.
Anyone used this feature? I guess I can keep most of the funds in the savings account, and depend on the overdraft to pay any large checks I might write. Any comments or drawbacks with this setup?
The feature does work just fine. I have used it successfully. But I’ve never used it multiple times per month.
Usually I use that feature when I have a check in the mail, am uncertain precisely when it might be delivered, and do not want to have money sitting in checking earning very little interest as I wait for the postal system to do its thing.
In that “check in the mail” circumstance, more often than not I’m able to determine in advance when the check must be covered. And I do so manually. Hence, the feature about which you inquired is actually triggered only in a last-ditch, worst case, uh-oh something went wrong, need a backstop situation.
I’m unable to speak to your question based on my experience. Can only offer an opinion:
Suspect you might get away with once/month. Think if I’m wrong they would offer you a warning before any AA (adverse action) happens. It might depend on how long you have been an Alliant member in good standing, with no other questionable goings on of any sort.
Again next, only my opinion and I surely could be off the mark:
I would not try this, on a regular basis, more than once/month.
Savings rate dropped to 1.35% which isn’t all that surprising. Kind of where I was originally thinking but then I got a bit bullish that it might stay higher with so many competitors still at 1.5%+.
Do you/did you have the 3% cash back credit card and MS on it? I know others have been shown the door for that as well. Can you give an approx amount for how frequently and what amount you deposited MOs?
