Alliant changes (they’re getting even worse)

[Anonymous]

Just got this email. 

Dear Robert,

We are making changes to the Alliant Account Agreement and Disclosures (AAD), effective July 1, 2020. Sections of the AAD pertaining to the Funds Availability Policy and Deposit Account Rates are being replaced by an addendum, which you can find on the final three pages of the AAD file linked below.

Download AAD with Addendum
 
We have included a brief summary of the changes below. 

Funds Availability Policy 

To comply with recent regulatory changes, we’ve updated our Funds Availability Policy (pages 27-29 of AAD). 

• In most cases, a minimum of $225 (up from $200) of funds from deposits made will be available for withdrawal on the day of deposit. 
• Deposits from $225.01 to $5,525 (up from $5,000) will generally be available for withdrawal no later than the second business day after the day of deposit.
• Deposits over $5,525 (up from $5,000) will generally be available for withdrawal no later than the seventh business day after the day of deposit.
• Some members may receive access to additional funds more quickly while availability of funds for some members may be reduced, according to the addendum. 
• We’ve simplified wording throughout to make our funds availability policy clearer, more reader-friendly and easier to understand.

Please note that “the day of deposit” means the business day that Alliant processes your deposit. After you’ve made a deposit, you can log in to Alliant online banking or the mobile banking app to check the status of your deposit and the availability of funds for withdrawal.

Deposit Account Rate Changes

The Deposit Account Rates and Fees section (page 7 of AAD) and the Truth-in-Savings Disclosure section (page 31 of AAD) are updated to reflect that savings and checking rates may be raised or lowered at any time of the month. 

If you have any questions about the above changes to the AAD, please send us a secure message in online banking or the mobile banking app, or call our Member Care Center at 800-328-1935. 

Thank you,
Alliant Credit Union

Honestly they're starting to look very unattractive and I will close my accounts in August when I can safely do so with no fee for closing before 180 days. Good riddance. 

3/10/2021 - Alliant shutting down accounts - https://ficoforums.myfico.com/t5/Personal-Finance/Alliant-changes-they-re-getting-even-worse/m-p/627...

[M_Smart007]

Thanks for the "gettin worser" DP's

[Gmood1]

Finishing out my SSL and closing mine as I type this. Hopefully will be closed next week.

[Anonymous]

Could you expand on why you think Alliant is "starting to look very unattractive?" These two changes don't seem like a big deal to me. The first change is actually positive - more money available sooner!

[Anonymous]

---

@Anonymous wrote:

Could you expand on why you think Alliant is "starting to look very unattractive?" These two changes don't seem like a big deal to me. The first change is actually positive - more money available sooner!

---

Did you actually read their old funds availability policy? They used to release all of it no later than the next business day after it was accepted. Now it's 2 days. Their cut off time of 1PM CST is also very early and means that deposits after that will take even longer. Most banks, including my own, have cut offs later in the day with full funds availability the next day. If I deposit up to $5K in my 1stBank account, I get $500 when it is accepted (this takes 2-3 hours) and with a 9PM cut off, I always get my deposit around 7-9AM the next day. 

It's great that they are making more immediately available but they are then holding the rest longer. 

That's not even addressing the fact that instead of setting their savings rates once a month, they now can screw you the very next day after a rate change. 

[coldfusion]

I never have an issue with someone deciding to move on from any financial services institution but this is an example of where one needs to do due diligence by confirming the current policies of the new institution.

As Alliant pointed out this is in response to a regulatory shift and they aren't the only ones (I know that Chase and BoA both have) that put equivalent changes in effect this month.  Singling out Alliant here is small potatos.

If there's any doubt about the current practice at your favorite FI check the latest iteration of their relevant deposit account agreement but I wouldn't be surprised if many of those that haven't yet posted and implemented an updated policy will be doing so as well.

[PutThatMoneyOnTheTable]

It's due to regulatory changes. It's beyond their control.

I also got that email from chase or BOA or it could be some other institution. I don't remember who. Sent it to trash.

The rate change, however, is a different story.

[coldfusion]

---

@PutThatMoneyOnTheTable wrote:

It's due to regulatory changes. It's beyond their control.

I also got that email from chase or BOA or it could be some other institution. I don't remember who. Sent it to trash.

The rate change, however, is a different story.

---

I don't know in what context you mean that the rate change is a different story.  Here's the relevant sentence from Chase in the section discussing interest rates on checking and savings accounts, BTW:

"Your account has a variable interest rate. That means we may change the interest rate and Annual Percentage Yield as often as we choose, without limits and without notice" (emphasis mine)

[joltdude]

The regulatory BS is something that is out of our control.. that said, they did put an out that iv you are a better customer (my words), they can give you access to more funds earlier.....

The changing your rate at a whim, vs monthly.... is making what was initially a HYSA with no min balance catch, a lot less alluring, and in general a lot of their products have seemed to lose their appeal...... On a similar note, i noticed on recent CR's that it shows trend history on the SSL.... Kinda thinking it might be a good idea to pay it off and its lost its effect....

-J

[PutThatMoneyOnTheTable]

---

@coldfusion wrote:

---

@PutThatMoneyOnTheTable wrote:

It's due to regulatory changes. It's beyond their control.

I also got that email from chase or BOA or it could be some other institution. I don't remember who. Sent it to trash.

The rate change, however, is a different story.

---

I don't know in what context you mean that the rate change is a different story.  Here's the relevant sentence from Chase in the section discussing interest rates on checking and savings accounts, BTW:

"Your account has a variable interest rate. That means we may change the interest rate and Annual Percentage Yield as often as we choose, without limits and without notice" (emphasis mine)

---

What I meant was........ I wish not say because I'm not versed on the full details of what was said or how it works actually. They are not completely bounded by regulatory restrictions when setting or changing the interest rate. It's Chase's discretion to give us .01% and credit unions can offer .05%

The amendment can be read in detail here

https://www.federalregister.gov/documents/2019/07/03/2019-13668/availability-of-funds-and-collection...