Credit unions tend to offer better interest rates than banks do, but also have more narrow membership requirements and less slick technology.
Enter Alliant Credit Union, which combines the best of both worlds, with broad membership criteria, stellar rates and an excellent mobile app.
If you’re shopping for a new checking or savings account, Alliant warrants a closer look.
Alliant Credit Union may be right for you if:
- You want an interest-bearing checking account that doesn’t come with steep fees or high initial deposit requirements.
- You’re looking to bolster your nest egg by using a standard savings account with a strong rate.
- You don’t mind managing your accounts on a smartphone or computer if you don’t live near an Alliant branch.
| Pros | Cons |
|---|---|
|
|
Alliant High-Rate Checking
| Monthly fees | None |
| Minimum opening deposit | $0, but to qualify for an account, members must sign up for free eStatements and have at least one monthly electronic deposit made to the account. Direct deposits, mobile and ATM deposits and transfers from other banks and credit unions all qualify. |
| Interest on balances | 0.65% APY |
| ATM access/fees | Free access to over 80,000 cash machines Alliant doesn’t charge a fee for out-of-network ATM withdrawals, but the owner of the cash machine might. |
| Overdraft fees | $25 courtesy pay fee. Alliant covers checks, electronic payments and transfers that don’t clear because of insufficient funds. The overdraft balance and the fee must be paid within 17 days. Customers can sign up for overdraft protection, which costs $3 per overdraft transfer from a linked Alliant savings account. |
| Other notable fees | $25 outgoing domestic wire transfer $10 dormant account fee if account hasn’t been used in three years, charged once before account is closed |
Alliant High-Rate Savings
| Monthly fees | None |
| Minimum opening deposit | $5, which Alliant will pay |
| Interest on balances | 1% APY on balances of $100 or more |
| ATM access? | Yes |
| Automatic transfers from linked checking? | Yes |
| Notable fees | $10 if account is closed within 90 days of opening $10 dormant account fee if account hasn’t been used in three years, charged once before the account is closed |
Alliant Certificates
| Minimum opening deposit | $1,000, and members must have an Alliant savings or trust account with a balance of at least $5 |
| Monthly fees | None |
| Interest on balances | APYs range from 1.15% to 2.20%, depending on the term length and deposit size. Longer terms and larger balances earn higher yields. |
| Term lengths | One to five years |
Analysis
Strong rates across the board: More often than not, interest-bearing checking accounts have steep monthly fees, and their rates aren’t that impressive. The national average for FDIC-insured banks currently stands at 0.04%. That makes Alliant’s 0.65% APY look pretty good. Best of all, members won’t have to pay a cent to benefit from these high yields, making Alliant’s product one of the best free checking accounts on the market.
The 1% APY on Alliant’s savings account is significantly higher than the national average of 0.06%. In fact, its rate is better than those found at Capital One 360 and Bank5 Connect, two of the country’s leading online-only banks.
» MORE: NerdWallet’s best banks and credit unions in the Midwest
Broad membership requirements: Many credit unions restrict membership to people who work for certain companies or live in specific communities. That’s not the case at Alliant, where a one-time, $10 donation to a nonprofit that supports foster children earns you membership.
Strong mobile app and website: Unlike thousands of credit unions, Alliant does not participate in shared branching — and it has locations only in five states. But it does offer strong mobile and online banking platforms, so members can take care of banking tasks on their smartphones and personal computers.
Alliant’s online banking platform uses slick graphics and tables to make managing your finances much more appealing. Members have access to online bill pay and budgeting and money planning tools, and can even check their credit scores for free. They can also deposit up to $20,000 per day using the credit union’s remote check deposit tool, significantly more than most banks and credit unions allow.
» MORE: NerdWallet’s best banks and credit unions for mobile banking
Subpar certificates: Alliant’s certificates fall short for a few reasons. First, the $1,000 initial deposit requirement is comparatively steep. Some of the best credit unions and online-only banks have no minimum opening balances for certificates. And it isn’t ideal that customers are required to have a savings account just to get their hands on a certificate.
The bottom line
Alliant made it onto NerdWallet’s list of best credit unions for good reasons. Fees are kept to a minimum while interest rates are high. Consumers looking for a new checking or savings account would be well served by starting their search at Alliant.Tony Armstrong is a staff writer at NerdWallet, a personal finance website. Email: tony@nerdwallet.com. Twitter: @tonystrongarm.
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