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We're often asked, "Why do dividend rates decline?" especially in the current economic environment. So here is a brief explanation why our rates change and what it means for Alliant Credit Union members.

1. The Federal Reserve announced that it will continue to keep the federal funds rate in a range between 0 and 0.25 percent, a policy it expects will continue at least to mid-2013. As market rates remain at historically low levels, so do the yields that we earn on loans and investments, and the rates that we (and other depository institutions) can pay on deposits. As older loans and investments are paid off or mature, they are replaced with new assets with lower current yields.
2. However, Alliant Credit Union's savings dividend remains among the highest available in the nation. As an outcome of the regular Board Meeting held on Thursday, December 08, 2011, the Board of Directors declared a prospective savings dividend of 1.00% APY (0.995% simple) for the month of January, 2012. Currently, the average bank savings account rate (on a $1,000 deposit) is .16%. At 1.00%, we'd be about 6x higher. So despite a slightly reduced dividend rate, Alliant still pays about 6x more than the average bank or credit union rate.
3. Alliant's Certificate rates are also among the highest available. While some institutions offer higher Certificate rates, be cautious about taking a promotional offer. Our operating costs are extremely low, and we return all of our earnings after expenses and reserves to our member-owners; therefore, it is likely that institutions that are offering higher rates are doing so at a loss. Also, beware of "new money" offers; at maturity, the institution almost certainly will try to rollover the Certificate at a significantly below market rate in order to earn back the premium they initially paid. At Alliant, we consistently pay high rates and don't play bait and switch.
4. If you are looking for savings and retirement alternatives, Alliant can help. Alliant Retirement and Investment Services delivers a trustworthy, full-service financial advisory program providing:
   • Retirement planning
   • 401k and pension plan rollovers
   • Wealth management
   • Education funding
   • Insurance
   • Investment services
   • IRA Services

A team of dedicated financial advisors will work one on one with you to help you make sound financial decisions consistent with your risk tolerance, investment time-lines and goals. Call to schedule a no cost, no obligation financial consultation to get the assistance needed to reach your financial goals.

For over 75 years, we've strived to offer consistently superior financial value. So while market conditions change and other financial institutions come and go, you can count on Alliant to remain a safe place to earn consistently strong returns.