Alliant Celebrates Back-to-Back Savings Dividend Rate Boosts

CHICAGO – This quarter marks the second time this year Alliant Credit Union has boosted its quarterly savings dividend rate. The rate now stands at 3.25%, one of the highest in the nation, with a compounded annual percentage yield of 3.29% for members who maintained an average daily balance of $100 or more, according to the $4.5 billion CU. The rate tops the 3.03% APY announced in March. According to David Mooney, Alliant president and CEO, the credit union considered offering CDs, but reasoned that with its “top dividend rates,” promises of a slightly higher dividend wouldn’t be worth tying up members’ funds. “Like most market-watchers, we expect the Federal Reserve to continue its policy of increasing short-term rates, and continue to believe that Alliant’s regular share accounts will offer the best value over time,” he said. Mooney credits the “strong financial performance brought on by Alliant members taking advantage of its products and services, combined with business partnerships, high member satisfaction and an efficient operation as the key elements responsible for the savings dividend hike. Alliant partnerships include the National PTA, Illinois CPA Society, Ardent Health Services, Takeda Pharmaceuticals, 1-800-Flowers.com, and Life Time Fitness, which has strengthened the CU’s membership base while still maintaining its long-standing partnership with United Airlines. More than 15,000 new members joined the CU in 2004. Market-watcher DataTrac Corp., which tracks information from more than 16,622 institutions nationwide, reported in mid-June that banks paid on average 0.57% on a comparable savings account, and 2.84% for a one-year CD with a $10,000 minimum. “Not only are the market rates much lower than Alliant’s, its member savings are completely liquid, which means they can be withdrawn at any time without penalty (unlike CDs that lock a consumer into a fixed rate in the rising rate environment),” the credit union said. Alliant is the largest credit union in Illinois serving more than 182,000 members. [email protected]