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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 5.15% APY, which are much higher than average CD rates.
Here are the certificate rates if you make an $1,000 minimum opening deposit.
| Terms | APY |
| Alliant 3 Month CD | 4.25% |
| Alliant 6 Month CD | 5.00% |
| Alliant 1 Year CD | 5.15% |
| Alliant 18 Month CD | 4.80% |
| Alliant 2 Year CD | 4.30% |
| Alliant 3 Year CD | 4.15% |
| Alliant 4 Year CD | 4.00% |
| Alliant 5 Year CD | 4.00% |
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.
| Terms | APY |
| 3 months | 4.25% |
| 6 months | 5.00% |
| 1 year | 5.20% |
| 18 months | 4.85% |
| 2 years | 4.40% |
| 3 years | 4.25% |
| 4 years | 4.00% |
| 5 years | 4.05% |
Pros and Cons of an Alliant CD
| Pros | Cons |
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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.
How Alliant Credit Union CD Rates Compare
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
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.
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?
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?
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?
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?
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?
Alliant offers jumbo CDs, which means you can earn a higher interest rate on many terms with a higher minimum opening deposit.
Sophia Acevedo
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She is a banking expert, and has about three years of experience reviewing banking products and analyzing savings and CD trends.Sophia oversees Personal Finance Insider's banking vertical. She edits and writes bank reviews, banking guides, and banking, budgeting, and savings articles for the Personal Finance Insider team.Sophia joined Business Insider in July 2021. Sophia is an alumna of California State University Fullerton, where she studied journalism and minored in political science. She is based in Southern California.You can reach out to her on Twitter at @sophieacvdo or email sacevedo@businessinsider.com.Read more about how Personal Finance Insider chooses, rates, and covers financial products and services »Below are links to some of her most popular stories:
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