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Alliant Remains a Safe Place to Earn Strong Returns

October 02, 2008 | David W. Mooney, President & CEO

 

At Alliant, You Are A Member-Owner, Not A Customer

While you have many choices of where to put your money, why not put it someplace where you’re treated like an owner? Alliant is not a bank. We are a member-owned credit union. There are some distinct advantages to putting your money in a credit union.

Credit Unions Banks
Not-for-profit, owned by and operated for the benefit of members Most owned by public or private investors
All income after expenses and capital reserves distributed to members Banks distribute their profits to their investors
Maximize returns to members through high savings dividends, low loan rates and low fees Seek to maximize returns to their investors by paying lower rates on deposits, charging higher rates on loans, and assessing more and higher fees

There is also one important and valuable similarity. Both institutions deposits are federally insured to at least $250,000 (IRAs are insured separately up to $250,000) and backed by the full faith and credit of the United States Government.1 The National Credit Union Administration (NCUA), a U.S. government agency insures credit unions through the National Credit Union Share Insurance Fund (NCUSIF). And, the Federal Deposit Insurance Corporation (FDIC) insures banks and savings associations.

While the financial news on TV and in newspapers is unsettling, I am happy to report that Alliant remains as strong as ever financially and well-positioned to serve you and your family’s financial needs. Although not entirely immune to today’s challenges, the strengths of Alliant’s mission, business model and fiscally conservative policy enable us to continue to be a safe place for strong returns on deposits and below-market rates on loans.

A Safe Place To Save

Today, it is not enough to talk a good game you have to prove it, too. Here’s the proof:

  • Alliant, once again, recently received the highest possible ratings for financial safety and soundness from state and federal regulators.
  • Alliant has more than $625 million in capital, and a net worth ratio of 11% – well above the 7% regulatory definition of “well capitalized,” and much higher than the average bank.
  • Alliant did not make sub-prime loans or engage in other risky lending practices that have led to large losses at many lenders.
  • Alliant invests only in a diversified portfolio of highly rated, liquid securities and deposit instruments, and we continuously monitor credit quality and market conditions.
  • Alliant has extremely low operating expenses (we are in the top 1% of credit unions nationally in efficiency). As a result, Alliant doesn’t have to “stretch” in pursuit of risky income.
  • Alliant savings and IRAs are federally insured to at least $250,0001 and backed by the full faith and credit of the United States Government by the National Credit Union Administration (NCUA), a U.S. government agency. IRAs are insured separately up to $250,000 by the NCUA.

The Emergency Economic Stabilization Act of 2008 increases share insurance protection to $250,000 until December 31, 2009.1

The Silver Lining

Challenging conditions present opportunities for both Alliant and you, as a member-owner and consumer. We encourage you to take a look at our Savings Dividend (currently paying 3.75% APY2 as of October 2008) and Certificate rates (currently paying as high as 4.50% APY3 as of October 10, 2008), which consistently rank among the highest available, and continue to attract strong inflows of member deposits. In fact, 2008 year-to-date deposit growth of over $700 million combined with the NCUAs share insurance backing of deposits are a testament to our members’ confidence in Alliant. And, despite the weak housing market, our mortgage originations are at all-time highs. Our conservative approach enables us to make sound loans while other lenders have had to retreat.

Although not entirely immune to today’s challenges, the strengths of Alliant’s business model, organization and membership will enable us to continue to meet your expectations.

It Pays to Belong

Please call, click or visit us with questions or to conduct transactions:

  • 24/7 toll-free personal member service: 800-328-1935
  • 24/7 toll-free automated Self Service Telephone: 800-482-5328
  • 24/7 online banking and free Bill Pay4
  • Stop by your local Alliant Service Center

Our mission is your financial success. Thank you for being a member and putting your confidence in us!

Sincerely,
David W. Mooney
President & CEO

P.S. Feel free to share this information with your family members and co-workers so they can take advantage of the safety, security and great rates of Alliant.

 

1 On October 3, 2008, the United States Government passed The Emergency Economic Stabilization Act of 2008. The Act temporarily increases insurance limits for accounts backed by the National Credit Union Share Insurance Fund (NCUSIF), increasing share insurance coverage from $100,000 to $250,000. The increase is effective from the date of enactment through December 31, 2009. 2 The October Savings Dividend, declared 09/18/08, provides a Dividend Rate of 3.69%–Compounded Annual Percentage Yield of 3.75% APY. Dividends are paid on the last day of the month to accountholders who have maintained an average daily balance of $100 or more. Savings dividend is subject to change monthly. APY= Annual Percentage Yield. 3 Regular Share & IRA Certificates with a term between 12 and 23 months provide a Dividend Rate of 3.69% - Compounded Annual Percentage Yield of 3.75% APY on balances between $1,000 and $24,999.99. Jumbo Share & IRA Certificates with a term between 12 and 23 months provide a Dividend Rate of 3.83% - Compounded Annual Percentage Yield of 3.90% APY on balances $25,000 or greater. Regular Share & IRA Certificates with a term between 24 and 35 months provide a Dividend Rate of 3.83% - Compounded Annual Percentage Yield of 3.90% APY on balances between $1,000 and $24,999.99. Jumbo Share & IRA Certificates with a term between 24 and 35 months provide a Dividend Rate of 3.98% - Compounded Annual Percentage Yield of 4.05% APY on balances $25,000 or greater. Regular Share & IRA Certificates with a term between 36 and 47 months provide a Dividend Rate of 4.265% - Compounded Annual Percentage Yield of 4.35% APY on balances between $1,000 and $24,999.99. Jumbo Share & IRA Certificates with a term between 36 and 47 months provide a Dividend Rate of 4.41% - Compounded Annual Percentage Yield of 4.50% APY on balances $25,000 or greater. Regular Share & IRA Certificates with a term between 48 and 60 months provide a Dividend Rate of 4.265% - Compounded Annual Percentage Yield of 4.35% APY on balances between $1,000 and $24,999.99. Jumbo Share & IRA Certificates with a term between 48 and 60 months provide a Dividend Rate of 4.41% - Compounded Annual Percentage Yield of 4.50% APY on balances $25,000 or greater. Alliant Certificate rates are as of 10/10/2008. APY= Annual Percentage Yield. 4 An Alliant checking account is required for use with Alliant Bill Pay. There are no fees to maintain a Bill Pay account. However, if incurred, applicable fees such as a stop payment fee will apply. Please refer to the Alliant Fee Schedule at www.alliantcreditunion.org for a complete list of these type of fees.


© 2008 Alliant Credit Union. All Rights Reserved.

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