A few weeks ago I encouraged you to join the U.S. Army to be a part of the Pentagon Federal Credit Union (Penfed) for good mortgage rates. Recently I came across a fine credit union that won't send you to Iraq. Alliant Credit Union offers a savings account that pays 4%, practically the highest interest rate in the country. I don't encourage rate chasing, but Alliant (formerly known as United Airlines Employees' Credit Union) has historically paid an above-market interest rate. Compare Alliant's 4% to WaMu (another high rate) currently paying 3.3%.
There are several ways to qualify for Alliant:
- Work for an eligible institution
- Join the local or national PTA (best route for most of us)
- Be blood related to an Alliant Credit Union member
Once you join, you can also take advantage of good mortgage rates, particularly for jumbo mortages. Compare a 5/1 ARM:
- Alliant: 4.75% (jumbo same as conforming)
- Penfed: 5.375% (jumbo same as conforming)
- Wells Fargo: 5.125% (conforming), 6.375% (jumbo)
- Bank of America: 4.875% (conforming), 7.75% (jumbo)
Nice - United Airlines is on the list!