Good post, zzz, and highly interesting . . . at least to me.
As I wrote up thread, and you confirmed, Alliant was allowing 7/5 ACH scheduling. You took them “at their word” and were later rebuffed. Bad.
If they were not going to execute ACHs on 7/5 we should not have been allowed to so schedule in the first place.
This means we cannot rely or depend, in future, on the execution date we schedule being the one which in reality will be used.
Sorry you are encountering difficulty, pattyb53. However, candidly:
It is unsurprising for financial institution call centers to be busy on the morning of the day following a holiday interval. There is a lot of pent up stuff people get to over the holiday and then discover they have to call in to finalize this or that matter.
Where banking activity is concerned, holidays are a caution and should be given a wide berth if at all possible.
Regarding: Alliant Visa Signature
Beneath the new rules we must keep a minimum of $1000 in our checking accounts, starting in August, in order to earn the 2.5% reward. The July cycle on our cards will come to a close tonight or tomorrow night, and the August cycle will commence.
When Alliant makes reference to “August”, are they referring to the August cycle of our cards or to the calendar month of August?
You are correct.
Today I actually tried to add a new account the same as I have for many years. Got that RED message, no way, no how.
Plus, I don’t think they want to do business with me anymore. So I went ahead to make another ACH transfer which was fine.
Later when checking on the results of the transfer I realized that the funds were low. I still had a couple of minutes to cancel the order (I thought). But there it was that dreaded RED message. Too late!
I called to ask for a reprieve. They asked question after question on my identification. Was it the real me, finally Alliant agreed to make a note on the ACH transfer.
I’m now in waiting to see what they do tomorrow when the transfer meets the rubber.
Next time you speak with them, ask to file a complaint RE the max number of accounts. It was pretty much decided unilaterally, so any feedback would help.
I actually just finished talking to an agent at Alliant.
When I finally finished talking about my original topics, I asked him about your question.
I like shinobi have a great amount of external accounts. I asked about deleting some of those accounts I no longer use, in order to add more. He thought it would be a good idea.
He couldn’t really talk about maximum number of allowed accounts. But when looking at my account, he said I had more openings. I don’t think he is knowledgeable because Alliant turned down my last request.
Who knows?
If you delete accounts you wouldn’t be able to add anymore if you are over the maximum.
There is definitely a maximum number of external accounts – the ask to Alliant is to have them reverse this decision to add a cap. It really doesn’t add much “security” – rather they should focus on adding additional verification on linking accounts if they are concerned about security. Which seems to be plaid’s problem now.
As of the fifteenth of this month, Alliant has removed the restriction on our savings accounts of six withdrawals per month. If you log into your Alliant account and go to the detail for your savings account you will find the withdrawal counter is no longer there.
When discussing this with the Alliant rep, he told me Alliant had not been enforcing this restriction even prior to the fifteenth . . . . except that you had to call in. Now it is not even necessary to call in. The restriction is entirely gone.
Also the $1000 in checking for Q4 2.5% reward requirement, if you have the Alliant Visa Signature card, commences August first. But beware, and plan accordingly, because that is a Sunday.
Thank you. Good to know.
I’ll have to give you credit shinobi, for keeping us all up to date on the latest Alliant news.
However, their Agents are not always trustworthy in their information handed over to us. As an example, earlier in the month I was denied an ACH transfer because we counted 6 previous times. I actually called Alliant because a cd had matured and I was doing some transfers.
Reading your post, perhaps if I had been using Savings instead of Checking for transfers it would have been ok. But on the other hand if that had been the case, why wouldn’t that Agent have told me.
But your news is welcome. Thanks…
This is excellent news. Thank you Shin!
It may sound good to have unlimited withdrawals on savings, but “if the distinction between a savings account and a checking account is eliminated, consumers may have less reason to use checking accounts, and banks may have less incentive to offer better rates on savings accounts.”
The Federal regulation was withdrawn last year during the pandemic. It probably should be put back.
Otherwise, savings rates may drop.
That may be true. But if there are at least a few online savings accounts that do not relax the 6-withdrawal rule and keep up their rates, then Alliant would still have to stay competitive with them. Marcus was one of the first to remove the withdrawal limitation, and they are still staying competitive.
It won’t occur immediately. It is very likely to occur if the situation continues.
I don’t know. Most banks let you open multiple identical savings accounts, and the withdrawal limit is per account, so it has always been stupid and unnecessary.
It distinguishes a savings account from a checking account. Multiple savings account is a partial way around it, but not completely, as each account is still limited.
It makes perfectly logical sense to have a separate vehicle that encourages saving and stability of funds within banks.
If there were only checking accounts, interest rates would drop. The only reason they are higher than checking accounts is the restrictions that define them as different than checking accounts and the stability the bank has knowing funds will remain for longer periods of time than a checking account.
I don’t know why anyone would say this is not a logical and intelligent method, as it helps savers as well by not giving them easy access to withdraw funds any time as much as they want.
What types of bank accounts would you design?
Each account is limited, but the owner of all of those accounts is not limited. Open 10 accounts and you can withdraw your money from the bank twice a day. Or just make bigger withdrawals 6 times. The bank wins nothing in terms of stability, and I doubt the real-world strength of the deterrent, because the customers can withdraw whatever and whenever they need.
I think the other big and important difference between savings and checking is that you can’t write checks with a traditional savings account.
I disagree that savings account interest rates would drop. I think the rates are almost entirely disconnected from the fact that it’s a savings account. We have CDs to encourage savings and “stability of bank funds”. We also have MMA and checking accounts with interest (sometimes high interest). The big banks have never (in my adult lifetime) paid much on savings, you have to go to smaller, more innovative and competitive banks, and they will continue to compete just the same.
I agree with this, particularly given Alliant’s current CD rates. Their one year CD matches their savings account rate at .55%, and their five year rate is .65%.
If Alliant valued having the cash on hand without members withdrawing it, those CD rates would be higher than the savings account rate by a larger margin.
So then why are savings rates higher than checking rates?
Check writing privileges? The convenience of being able to pull from your Visa debit card without having to make a transfer? The “mindset” many have that savings isn’t supposed to be touched while checking is the “everyday” account?
I don’t think the 6 withdrawal limit was ever the reason why they more than double the interest rate for the savings account, and in fact, many institutions have almost no delta between checking and savings account rates. HMBradley’s 3% for instance is on a checking account, and it’s not a rewards account, either.