Alliant Credit Union Eliminates Overdraft Fees

The Chicago-based Alliant Credit Union announced on Monday that it will no longer charge members for overdraft fees or fees for non-sufficient funds on all checking and savings accounts. This decision was significant because Alliant is the largest credit union and one of the largest financial institutions to eliminate those fees.

“Alliant has never relied on fees, unlike some other banks and financial institutions. Today, we go all-in for our members and eliminate overdraft fees all together,” President/CEO Dennis Devine said. “Our biggest priority is doing what’s in the best interest of our members, and that means challenging historic norms like overdraft and non-sufficient funds fees.”

In a statement to CU Times, Alliant said the change is “the latest in a long string of member-first initiatives by Alliant, putting the challenger bank in stark contrast with many profit-driven financial institutions that, over the past decade, have collected more in fees than they have paid out in interest.”

Devine noted that extra fees such as overdraft fees and fees for non-sufficient funds typically place even more financial burdens on members who are already struggling financially.

To fix the disparity, Alliant dropped the fees. A statement on Alliant’s website said it best: “No more overdraft fees. It’s that simple.”

Currently, the $14.2 billion credit union serves more than 600,000 members.

“We’re proud that we are able to eliminate these fees completely on all accounts while keeping our great rates,” Devine said. “We intend to put customers first at every opportunity, and this is an important step. Alliant is unique in its simple and member-centric approach: No overdraft or non-sufficient funds fees, period.”

Just last month, UW Credit Union in Madison, Wis. ($4.5 billion in assets, 296,580 members) announced that it cut its overdraft and non-sufficient funds fees from $30 per occurrence to $5. The immediate policy shift was due to the credit union’s goal of creating a more equitable banking experience for everyone, while also supporting the financially vulnerable.

UW Credit Union eliminated overdraft fees related to everyday debit card purchases and ATM withdrawals in 2010.