CHICAGO—Alliant Credit Union has increased the rate it pays on its savings accounts for the third time in the past year—another sign that FIs are preparing for rising rates.
Minutes from the June Federal Open Market Committee meeting show the economy has been expanding “moderately” in recent months. But the Fed said that to support continued progress toward maximum employment and price stability, the current 0% to 0.25% target range for the federal funds rate remains appropriate.
Alliant’s latest rate increase brings the credit union’s savings account rate to 0.95% APY, up from 0.90%. The CU also increased rates on IRAs and its Coverdell educational savings account.
“Alliant’s membership growth and low operating expenses have put us in a strong financial position, and we’re thrilled to be able to pass on the benefits of our lean business model to our member-owners,” said Alliant President and CEO David W. Mooney.
“Our goal is to serve the best interests of our members, so even though the Federal Reserve has yet to implement its long-awaited interest rate increase, we’re not waiting to pay our members higher rates.”