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Alliant CDs: Pros, Cons, and Current Rates

2024-07-23T18:05:19Z JUMP TO Section Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
  • Alliant CD Eligibility
  • Types of Alliant CDs
  • Alliant Credit Union CD Rates Today
  • What Influences Alliant CD Earnings
  • Pros and Cons
  • Should You Open an Alliant CD?
  • How Alliant CD Rates Compare
  • Why You Should Trust Us
  • FAQs
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    Alliant Credit Union is an online-only financial institution.

    Alliant is one of the best credit unions because it has low minimum opening requirements on bank accounts and competitive CD rates.

    Who is Eligible for an Alliant CD?

    You can become a member of the credit union regardless of where you live in the U.S. if you join Foster Care to Success, a non-profit organization focused on foster youth (Alliant covers the $5 joining fee). Once you've joined Alliant, you can open an Alliant Certificate.

    Types of CDs offered by Alliant

    Alliant has standard, jumbo, and IRA CDs. Alliant Certificates are the bank's standard account. You can choose from terms that range from three months to five years.

    Alliant Jumbo Certificates are similar to the standard ones — these accounts still have a fixed interest rate and early withdrawal penalties. The main difference between the two accounts is that Alliant Jumbo Certificates pay a higher interest rate on select terms because you have to open an account with $75,000 or more.

    The third option Alliant offers is IRA Certificates. These are retirement accounts the best suited for people who plan to retire in a few years.

    You can choose between Traditional IRA, Roth IRA, or SEP IRA Certificates. An IRA has been established with Alliant before opening an Alliant IRA Certificate. Alliant IRA Certificates pay the same rates as Alliant Certificates if you make a $1,000 opening deposit or Alliant Jumbo Certificates if you make a $75,000 opening deposit.

    Alliant Credit Union CD Rates Today

    Alliant Certificate rates are 4.00% to 5.05% APY, which are much higher than average CD rates.

    Here are the certificate rates if you make an $1,000 minimum opening deposit.

    TermsAPY
    Alliant 3 Month CD4.25%
    Alliant 6 Month CD5.00%
    Alliant 1 Year CD5.05%
    Alliant 18 Month CD4.50%
    Alliant 2 Year CD4.30%
    Alliant 3 Year CD4.15%
    Alliant 4 Year CD4.00%
    Alliant 5 Year CD4.00%

    Alliant Credit Union Jumbo CD Rates

    Alliant Credit Union also has jumbo certificates. These accounts offer slightly higher interest rates on select terms with a $75,000 minimum opening deposit.

    TermsAPY
    3 months4.25%
    6 months5.00%
    1 year5.10%
    18 months4.55%
    2 years4.40%
    3 years4.25%
    4 years4.05%
    5 years4.05%

    What Influences Alliant CD Earnings

    Since all Alliant CDs have fixed interest rates, you can use a CD calculator to find out how much interest you'll receive. Bear in mind that CD term length and early withdrawal penalties can impact your Alliant CD earnings, though. If you choose to renew a CD, market fluctuations are an additional factor to consider.

    CD Term Length

    Generally, long-term CDs pay more interest in the long run because you're guaranteed a fixed interest amount for a longer period of time. However, short-term CDs offer higher interest rates than long-term CDs right now because of economic uncertainty.

    Experts recommend choosing a CD based on your savings goals. If you're looking for more flexibility, you could also build a CD ladder.

    Avoiding Early Withdrawal Penalties

    To obtain the maximum amount of interest on a CD, you must wait until CD maturity. If you withdraw money from an Alliant CD during the term, you will face a penalty.

    Here is an overview of Alliant's early withdrawal penalties:

    • Up to 90 days of dividends for terms of 17 months or less
    • Up to 120 days of dividends for terms between 18 months and 23 months
    • Up to 180 days for terms between 24 to 48 months, or 60 month terms

    Alliant has more lenient early withdrawal penalties than other financial institutions — particularly for long-term CDs — but these charges can still significantly impact your total interest earnings. It's best to wait until your CD matures if you can.

    Market Fluctuations

    Your earnings also may be impacted by market fluctuations if you're opening or renewing a CD. Alliant can change CD rates at any time. Generally, though, CD rates fluctuate when the Fed adjusts monetary policy. Paying attention to upcoming Fed meetings can you keep track of changes in monetary policy and potential changes in CD rates.

    Pros and Cons of an Alliant CD

    Pros of an Alliant CD

    Cons of an Alliant CD

    • Other online financial institutions may let you open a CD with less money upfront
    • Other financial institutions may have more CD types, like no-penalty CDs or step-up CDs

    Should You Open an Alliant CD?

    Alliant Credit Union is a great option for CDs if you are looking for high interest rates and can meet the minimum to open an account.

    Most notably, Alliant offers one of the best 18-month CD rates. However, if you're looking for special types of CDs, like step-up CDs, you'll want to consider another online financial institution.

    Alliant Credit Union CD Alternatives

    Featured Nationally Available Deposit Rates

    Account NameAPY (Annual Percentage Yield) Accurate as of 8/1/2024Minimum Account Opening Balance
    Western Alliance Bank High-Yield Savings Premier5.31%$500
    Sterling Federal Bank 3 Month CD5.10%$1
    Barclays 6 Month Online CD4.85%$0
    SkyOne Federal Credit Union 1 Year No Penalty CD4.75%$1

    Alliant Credit Union CD vs. PenFed Credit Union CD

    Alliant Credit Union and PenFed Credit Union CD rates are both higher than the national average. If you're looking for the most competitive CD rate, it may ultimately depend on which term you want and how much money you plan to deposit.

    If you're interested in getting a 7-year certificate, PenFed will be your default option because Alliant doesn't offer this term. Alliant does offer a 3-month term though, which PenFed doesn't have.

    You'll also prefer Alliant if you want to open a certificate that has more lenient early withdrawal penalties. PenFed has steep penalties for early withdrawals on terms above six months.

    PenFed Credit Union Review

    Alliant Credit Union CD vs. Connexus Credit Union CD

    Alliant Credit Union and Connexus Credit Union both have standard certificates and jumbo certificates. The minimum opening requirements are more lenient at Alliant than Connexus — you'll need $5,000 to open a regular Connexus certificate and $100,000 to open a jumbo one.

    Alliant may be a better choice if you're searching for more short-term CD options, since Connexus doesn't have any terms under a year. It also pays slightly higher CD rates on most standard and jumbo certificate terms.

    Connexus Credit Union Review

    Why You Should Trust Us: How We Reviewed Alliant Credit Union CDs

    To review Alliant Credit Union CDs, we used our certificate of deposit methodology. We rate each account on a scale from 0 to 5.

    For regular and jumbo CDs, we looked at ethics, the mobile app, customer support, interest rates, minimum deposits, term variety, and early withdrawal penalties.

    Alliant CD FAQs

    Are Alliant CD rates typically competitive? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

    Alliant offers some of the best CD rates overall for standard CDs. The credit unions also has some of the best jumbo CD rates and high IRA CD rates.

    Does Alliant change their CD rates often? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

    Alliant CD rates can fluctuate over time. CD rates are impacted when the Fed adjusts monetary policy. CD rates rise when there's a Fed rate hike, and CD rates drop when there's a Fed rate cut.

    How do I become eligible for Alliant membership? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

    Anyone in the United States is eligible for Alliant membership. The easiest way to become a member is to join Foster Care to Success, a non-profit organization focused on foster youth (Alliant covers the $5 joining fee). You're also eligible for membership if you live in certain areas of Illinois or work an a participating employer.

    Are Alliant CDs safe? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

    Alliant CDs are safe, low-risk bank accounts. Money deposited into Alliant CDs is secure for up to $250,000 per depositor, per account ownership category.

    What's special about Alliant CDs? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

    Alliant offers jumbo CDs, which means you can earn a higher interest rate on many terms with a higher minimum opening deposit.

    spanSophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics.ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, and budgeting and saving. She is highly knowledgeable about long-term trends in rates and offers at banks across the U.S.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of a href="https://www.businessinsider.com/personal-finance/what-is-able-savings-account"ABLE accounts/a, tax-free savings accounts for people with disabilities. She was also a winner of a a href="https://cnpa.com/cja/2018campus/"2018 California Journalism Awards Campus Contest/a for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circumstances and overcoming their fears around money.ExpertiseSophia's expertise includes:/spanullispanBank accounts/span/lilispanSavings and CD rate trends/span/lilispanBudgeting/span/lilispanSaving/span/lilispanHow banks operate/span/li/ulspanEducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon./span Banking Editor Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics.ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, and budgeting and saving. She is highly knowledgeable about long-term trends in rates and offers at banks across the U.S.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circumstances and overcoming their fears around money.ExpertiseSophia's expertise includes:
    • Bank accounts
    • Savings and CD rate trends
    • Budgeting
    • Saving
    • How banks operate
    EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon. Read more Read less spanEvelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice./spanspanThe compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team./span Compliance and Operations Associate Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Read more Read less Top Offers From Our Partners Chime® Checking Account Set up Direct Deposit and get your paycheck up to 2 days before your coworkers.** No overdraft fees. No monthly fees. A tooltip Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. **Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date. Start Banking

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    Update: 2024-07-13