Thank you, pattyb53, for the information. I still have multiple large CDs at Alliant.The USPS informs me that I’ll have a letter from Alliant tonight. I’m praying it’s not this letter. I can’t believe they are doing this to longtime members.
4 Likes
Alliant cashed my $50,000 CD and credited with the interest earned to my savings account…They did not take a penalty…probably because i mentioned that they were dropping me on April 10th and i was clearing out my assets…
3 Likes
Sorry to hear about the closures y’all. I think the lesson here is that Alliant is only good for one thing – the credit card.
As interest rates continue to rise and Alliance’s checking account rate is not keeping up, that $1k minimum deposit in checking chips away at the value to me of the capped 2.5% credit card rewards.
That’s true, the break-even with a no-fee 2% card goes up with the rates. My own estimate for the current after-tax opportunity cost is ~$35/yr, so the break-even spend is $7K/yr. Fortunately (or unfortunately?) I charge a lot more than that.
The break-even was much higher when the card had an annual fee and no deposit requirement. At that time I PC’d to the no-fee card and wasn’t using it. So this is an option for someone who wants to wait out the interest rates without closing their account completely.
1 Like
I forgot about the no fee card, even though I had PC’d from that one to this one. Thanks for doing the math. I need to start charging more!
Thanks @scripta. Never imagined a long time member of Alliant would be hit as I was. I guess I’m still a member until 4/10/23. So thought I would check into my account and surprise, I’m locked out!
I’m not calling Alliant until after April 1st to see if my CD received interest. Your right they’re only good for a credit card.
3 Likes
Sorry to hear about the shutdowns!
Does this seem to pertain to transfers OUT of Alliant or either direction?
My guess - ACH pulling from one bank and then ACH pushing that money to another bank shortly thereafter (hub activity) is what they are looking for. Specifically if those pushes and pulls are all initiated at Alliant.
My wife’s paycheck is deposited at Alliant for a variety of reasons - the primary one being that it is a manual paper-based process to make any changes to it. I also like to diversify our deposits in case one account gets hit with fraud or has some other issue that leaves me without access to a particular financial institution.
I’ve been doing a combination of ACH pushing her paycheck to Fidelity, initiated at Alliant or ACH pulling that money, initiated from Fidelity for over a year without issue. I haven’t received an account shutdown letter nor experienced any adverse action. This has occurred as I have drastically decreased my deposits at Alliant - by about 75% or so.
5 Likes
Patty, did you receive any online notification that they were going to close your account? Or was it strictly via physical mail? (I am not able to check my physical mail for a while and am worried that my account could suddenly disappear)
2 Likes
No online notifications. Regular mail letter informing me that my account would be closed out 4/10/23.
2/3 Voting Board Members decided to close accounts. No reason given.
Thanks Patty.
When you called customer service were they aware of your situation?
I am thinking I should just call them and ask if my account would be closed.
This is the part of the law that is applicable:
(4) A member may be expelled by a majority vote of a quorum of directors if the board has adopted a policy providing for expulsion for any of the following acts committed by the member:
(i) causing a loss to the credit union;
(ii) failing to maintain one or more shares at the
credit union;
(iii) committing fraud or any similar misdeed against
the credit union;
(iv) engaging in inappropriate behavior involving
another person, such as physical or verbal abuse of another member or an employee of the credit union, while transacting business with the credit union; or
(v) otherwise violating board policy applicable to
members.
So pick your crime…
Pretty hard to pick one, I guess maybe (v) violating board policy of some sort. Beats me!.
@pattyb53, the reason is obvious - you’re one of the kool kids and alliant only wants weasels. 
1 Like
It might be what they consider excessive ACH transfers or possibly a complaint by customer service, too many calls, etc.
Did the 6month drop since then to 4.75? What was the 12 month theN? now it is 5.00apy
Yes, they dropped the short-term rates… The 12 month has gone up. I think it was 4.75%. I got it beginning of Feb. at 4.6%. I signed up for the one with a $100 bonus.
1 Like
Predictions of Alliant Savings APR April 1:
Me: 3.30%
1 Like
I guess we’ll see if they shut me down next spring. I have my direct deposit go to Navy Federal and ACH pull it to Alliant shortly thereafter. All bills get auto-paid from Alliant. I do way less hub ACHing than I have done in the past, but I still do some of that. I’m down to 8 linked accounts, but I don’t regularly transfer to/from all of them - just the recurring transfer in of my paycheck and one recurring small transfer out to another CU for an add-on CD.