letter from the president

great deals for wheels

Todays economy and its implications for Alliant and our members
Recent economic indicators portray a modestly positive, if mixed, picture of U.S. economic health. On the positive side are strong new vehicle sales, improving jobs growth and a recovering housing market (higher number of sales, higher prices and lower inventories). But despite these encouraging signals, the recovery remains fragile. Its progress depends on global economic and political developments, plus the actions of Washington policymakers. A stronger economy is generally good for Alliant. When our members increase their spending and borrowing (for cars, homes and recreation), these transactions increase our loan balances and income. (Alliant earns higher yields on our loans to members than we do on our securities investments.) And healthy employment conditions help keep loan defaults low. The continuing recovery also presents some risks, most notably from rising interest rates. As savers are painfully aware, interest rates have been at historic lows for nearly ve years. But it appears interest rates are poised to go up. Federal Reserve Chairman Ben Bernanke said in June that if growth continues and unemployment declines further, the Fed will begin later this year to reverse its program of pumping liquidity into the economy by keeping interest rates low. Markets have already responded to that comment and pushed up longer-term rates. And most economists and analysts project that short-term rates will begin to increase in 2014, possibly rising quickly. The danger for many banks and credit unions is that the yields on their assets loans and securities remain locked in at current low levels, while their cost of funds deposits and borrowings rise with market rates. This will be especially challenging for nancial institutions who, in search of higher yields, added xed rate assets with longer maturities, including 15-year and 30-year mortgages. At Alliant, we have intentionally managed our portfolio in preparation for a return to higher interest rates. While that meant giving up some current yield and income, our extremely low operating expenses have allowed us to maintain high giveback to members. Our savings dividend is currently 0.70% APY, which is more than 5x higher than the bank national average of 0.13% APY.1 We also offer great rates for loans and havent boosted fees as many other nancial institutions have done. At Alliant, we have always managed the business to deliver consistently superior value to members. When interest rates do eventually and inevitably go up, well remain in a strong position to deliver superior value to you.
David W. Mooney President/CEO

Five of the best times to buy a car

When is the best time to buy a car? There are as many theories on this as there are days in the year, according to CUDL Autosmart magazine. And here are ve strategies it recommends: 1. Rainy days: If bad weather keeps other buyers from going to the lot, the salesman may offer you a serious discount. 2. Early in the week: Dealers call weekends the tuna run because their lots often brim with customers easy to catch. With less foot trafc on weekdays, the salesman may be more motivated to deal. 3. Late in the month: If a salesman is a car or two short of a quota for a bonus, he may discount the car and eat the difference in return for the bonus. 4. End of the calendar year: Salesmen love to end their year with strong results. And because business is slow during the winter holiday season, you may be in for an end-of-year savings treat. 5. End of the model year: As the new model year cars roll in, cars from the previous year lose their luster and some of their sticker price, and you may get rebates. Wish you had a new car? Alliant Credit Union can help your wish come true. Alliant has great auto loan rates to help members realize their dreams of owning a new car. Learn more at www.alliantcreditunion.org.
ofce closings Alliant main ofces and branches will be closed in observance of the following holidays: Columbus Day Monday, October 14, 2013 Veterans Day Monday, November 11, 2013 convenient 24/7/365 account access Online banking at www.alliantcreditunion.org
Mobile banking app for iPhone, iPad and Android

connections
www.alliantcreditunion.org the newsletter for Alliant Credit Union members September 2013

contents
1 Credit unions: helping people

achieve financial well-being since 1844

2 Are you prepared to retire? 3 2013 Members Scholarship

Credit unions: helping people achieve nancial well-being since 1844

Want a refresher on Alliants history? Here goes. In 1935, our credit union was incorporated as the United Air Lines Employees Credit Union. Membership was restricted to United Airlines employees. working class people with affordable credit after he learned about a man ordered by the court to pay $5,000 interest on an overdue $150 loan. The first deposit at the Quebec credit union was a dime. Within six years, the institution had extended $200,000 in loans without losing a cent. The United States gave birth to its rst credit union in 1909 in Manchester, NH. Attorney Joseph Boivin managed it, as a volunteer, out of his house, which is now Americas Credit Union Museum. In 1934, President Roosevelt signed the Federal Credit Union Act, which authorized federally chartered credit unions in all states. Today, 96 million Americans belong to a credit union. Across the globe, there are 54,000 credit unions, which serve 186 million people in 97 countries. Through the years, we have remained true to our root principles to improve the financial well-being of our members. But in the midst of todays budget crisis, theres talk in Congress about taxing credit union income, threatening our ability to offer members higher dividends on savings, lower rates on loans and fewer and less costly fees. To learn more about the credit union not-for-profit tax exemption and help preserve it, visit DontTaxMyCreditUnion.org, where you can watch an educational video and then take action to email your members of Congress.
Sources: mycreditunion.gov, Credit Union National Association, National Credit Union Association, historybusiness.org, money.cnn.com and leaderscu.com

winners

4 Its comingAlliants new phone

system! Your member number and PIN will help you take full advantage of it

5 Letter from the President 6 Five of the best times to buy a car

Alliant Member Contact Center 800-328-1935 24/7 personal service tdd/tty 773-462-2300 Alliant Phone Banking 800-482-5328 24/7 automated account access VISA Debit Card Lost/Stolen: 800-328-1935 VISA Credit Cards To speak to an Alliant Representative 800-328-1935, x2302 MonFri, 7am5pm CT After Hours: 866-444-8529 Lost/Stolen: 866-444-8529

VISA Gift Card Purchase: 800-328-1935 Support Center: 866-466-2362 Mortgage Hotline 800-328-1935 Press option 5, then option 1 MonFri, 8am5pm CT Auto/Home Insurance 888-380-9287 MonFri, 6am10pm CT Sat, 6am 8pm CT GreenPath Debt Solutions 877-337-3399 MonThu, 7am9pm CT Fri, 7am6pm CT Sat, 8am5pm CT

Alliant Retirement and Investment Services Financial consultants are available to serve members in all states. Call 800-328-1935, option 9 . Deposits/Payments PO Box 2387 Des Plaines, IL 60017-2387 Credit Card Payments PO Box 1666 Des Plaines, IL 60017-1666 All Other Correspondence including IRA and HSA deposits PO Box 66945 Chicago, IL 60666-0945

DIVIDEND
September Savings Dividend DECLARED AUGUST 22, 2013

Alliant Phone Banking at 800-482-5328 Member Contact Center at 800-328-1935 Over 80,000 surcharge-free ATMs For more information, visit: www.alliantcreditunion.org. nancial update
AUGUST Net Assets Total Loans 2013 2012

The September 2013 Savings and IRA dividend, declared 08/22/13, provides a Compounded Annual Percentage Yield of

0.70% APY

In 2003, we changed our name and brand identity to Alliant Credit Union and made a shift to member diversication, adding other sponsor organizations, as well as individuals who lived or worked near OHare International Airport. Today, were the sixth largest credit union in the United States. Would you like a brief history of credit unions? Read on. The fundamental notfor-profit, financial cooperative principles of credit unions got their start in 1844, in Rochdale, England, by a group of weavers. To raise capital to buy expensive goods at discount prices, the group sold shares to members. Then, they sold the goods to members at reasonable prices. Later in the 1840s, it was Germanys turn to experience the benefits of credit unions. The country was hard hit by crop failure, high interest rates and an economy on the skids. To help the farmers and the urban poor stay nancially aoat, two Germans, Friedrich Raiffeisen and Herman Schulze-Delitzsch, each organized a network of credit unions. In 1900, the first credit union in North America opened its doors in Levis, Quebec. It was founded by news reporter Alphonse Desjardins. He was determined to provide

Alliant rate board AS OF SEPTEMBER 19, 2013 Deposits (% as high as) Rate Savings 0.698 High Rate Checking 0.648 Certificates 1.539 Health Savings (HSA) 0.698 AS OF SEPTEMBER 19, 2013 Loan Rates (% as low as) Rate New Vehicle Used Vehicle 30 Yr fixed mortgage 4.625 See our Rate Board at www.alliantcreditunion.org for more rates and information.
NEW286-R09/13

$7,791,389,371 $7,918,863,964 $3,578,191,663 $3,342,319,992

Total Deposits $6,930,644,522 $7,055,247,758 Total Reserves $ 826,107,704 $ 797,478,266 Total Primary Members 280,344 274,437

APY* 0.70 0.65 1.55 0.70

IMPORTANT: Rates may have changed since this newsletter was published. Visit www.alliantcreditunion.org or call 800-328-1935 for current rates.
Dividends are subject to change monthly. Loan approval, APR and downpayment required based on creditworthiness, collateral, payment method and ability to repay. Rates, terms and conditions subject to change. Other requirements apply. See our website or talk to a Member Service Representative for details. This newsletter is for members personal use only. Reproducing and/or selling the contents of this newsletter without prior written permission from Alliant Credit Union is prohibited. Copyright Alliant. Articles are prepared as an educational service for Alliant members. They should not be relied on as a substitute for individual nancial or legal research. Articles in this newsletter are not intended to be used (and may not be relied on) for penalty avoidance.

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.
September Checking Dividend DECLARED AUGUST 22, 2013

Alliant headquarters 11545 W. Touhy Avenue, Chicago, IL 60666

1 Alliants September 2013 Savings Dividend of 0.70% APY is accurate as of the last dividend declaration date of 08/22/2013. The bank national average savings rate of 0.13% APY, as of 09/03/2013, is sourced from the National Association of Federal Credit Unions in cooperation with Datatrac Corp.

60%

APR* 1.49 1.74 4.705

0.65 80% of 60% %

The September 2013 High Rate Checking dividend, declared 08/22/13, provides a Compounded Annual Percentage Yield of
APY

*APY=Annual Percentage Yield. APR=Annual Percentage Rate

Alliant Board of Directors Ed Rogowski Chairperson John Gebo Vice Chairperson David W. Mooney President & Treasurer Irwin I. Gzesh Secretary Julian Chu Ted Davidson David Leib Alex Marren Anne Pease Scott Praven Scott Wilson
PO Box 66945 Chicago, IL 60666-0945 www.alliantcreditunion.org

Checking dividends are paid on the last day of each month to accountholders who meet the requirements of the account. Checking dividend is subject to change monthly.

planning for the future

dollars for scholars

TCB by phone calls

Its comingAlliants new phone system!

Are you prepared to retire?

Retirement used to conjure up images of lazy days spent in a rocking chair. Todays retirement is very different. Will you open a business of your own? Return to school for that degree you never had the chance to complete? What does retirement mean to you? Regardless of your vision, youll need to design a nancial plan suited to it. A professional nancial consultant can help you monitor your plan and make changes when necessary. Among the factors youll need to consider: Time. The number of years until you retire will inuence the types of investments you should include in your portfolio. If retirement is a short-term goal, investments that provide liquidity and help preserve your principal may be most suitable. On the other hand, if retirement is many years away, you may consider more aggressive investments in your portfolio. Inflation. While lower-risk xed-income and money market investments may play an important role in your investment portfolio, if used alone they may leave you susceptible to the erosive effects of ination. To help your portfolio keep pace with ination, you may need to maintain some growth-oriented investments. Over the long-term, stocks have provided returns superior to other asset classes. But also keep in mind that stocks generally involve greater short-term volatility, and past performance is no guarantee of future results. Taxes. Even after you retire, taxes will remain an important factor in your overall nancial plan. If you return to work or open a business, for example, your tax bracket could change. If you move from one state to another, state or local taxes could affect your bottom line. Tax-advantaged investments, such as annuities and tax-free mutual funds, may be effective tools for meeting your retirement goals. Tax deferral offered by workplace plans such as 401(k) and 403(b) plans and IRAs may also help your retirement savings grow. Prepare today for the retirement of tomorrow. To ensure your retirement lives up to your expectations, develop your plan as early as possible and consider consulting with a professional. With proper planning, you may be able to make your retirement whatever you want it to be.
2012 S&P Capital IQ Financial Communications. All rights reserved.

Your member number and a PIN will help you take full advantage of it.

2013 Members Scholarship winners

Alliant recently selected five members to receive $2,000 each in this years Members Scholarship Program. They were among nearly 200 applicants evaluated on their academic performance, community involvement, personal goals and what Alliant means to them. Congratulations to the winners: Ashton Evans of Alpharetta, GA, is a senior at the Georgia Baptist College of Nursing of Mercer University in Atlanta, GA. He is a leader in the Georgia Baptist Association of Nursing Students and active in several other nursing associations. He mentors a junior nursing student and has volunteered for organizations that help seniors and kids. As a fundraiser, he recently put on his walking shoes and crossed the finish line in the 5k AIDS Walk Atlanta. I plan to pursue a career as a critical care specialty nurse. By working in pediatrics and with adults, I intend to become well-rounded and highly specialized. Next, I plan to obtain a Master of Science in nursing and become a nurse anesthesiologist. Finally, I aspire to earn a doctorate of philosophy in nursing because I want to teach and share my experiences with future nursing candidates. Alexa DeRoo of Plaineld, IN, is a sophomore at Purdue University in West Lafayette, IN. She is studying nursing. Active in Purdues student government, Nursing Students Without Borders, and Big Brothers, Big Sisters, she also serves as the assistant philanthropy chair for the Phi Mu Fraternity for Women. An expert lifeguard and swimming instructor, she works as an aquatics supervisor at an aquatic center. Volunteering has been a constant in my life and I want my nursing career to be in tandem with my humanitarian endeavors. I plan to earn a doctorate in nursing practice and then, hopefully, work with Doctors Without Borders. My ultimate goals are to raise a family, have my own nursing practice, and in the end, look back on my life knowing that I have made a difference. Kiera Maloney of Alameda, CA, is a freshman at Fordham University, in Bronx, NY. She plans to major in communications and media studies. A high school rowing and doubles tennis champ, her volunteer work has taken her to Senegal, Haiti, the Oki Ni So Kawa Indian Reservation in Montana, as well as New Orleans, where she helped build houses and worked in inner-city schools after Hurricane Katrina. I challenge myself to take advantage of all my opportunities to best serve others. As a future communications professional, I want to change the messages the media sends to us. I believe that by lling the mainstream with positive messages, we can become better people and a stronger community. Allison Michaud of Houston, TX, is a second-year student at Houston Community College. She is earning an associate degree in teaching. She is a life member and leader in the Texas PTA, a leader of a Girl Scout troop and active in the philanthropic-focused First Junior Womans Club. She also serves on the boards of the Stratford High School choir and theater booster clubs. Ive spent my entire adult life being a mom and working at Continental/United Airlines. A few years ago, I gured out what I want to be when I grow up: a high school counselor who can share the message that persistence pays off. No matter what obstacles life throws our way, we can achieve our childhood dreams even if it takes a few decades longer than our original plan. I like to think that my struggles can help others cope with theirs. Corinne Shiu of Alameda, CA, is a freshman at the University of California in Berkeley. She plans to major in molecular and cell biology. A straight-A student through high school, she played flute and served as president of the student music boosters club, which raised $10,000 for the music program last year. Corinne has tutored students in a wide range of subjects and served as a Spanish translator at a local hospital. I plan to attend medical school and specialize in ophthalmology. My primary interest is cataracts, the leading cause of blindness. I want to research the molecular process in cataract development and someday develop a real cure or way to prevent its formation. Ultimately, my goal is to help others see the world as clearly as possible.

Presented by nancial consultants with Alliant Retirement and Investment Services: Bernell Baker, Shaun Floresca, Joe Gaspari, Nicholas Hamilton, Matt McMillon, Giacomo Parente CFP* and Terence Powell

Alliants upgraded phone banking system, with speech recognition features, will go live later this fall. The new system will make your phone banking faster and easier, whether you want to make a self-service transaction or get personal assistance from a Member Service Representative 24/7. In the new system, youll be prompted to enter or say your member number and then your phone banking/SST PIN to conduct business. This pre-authentication provides confirmation of your identity, and if you need to talk to a Member Service Representative, youll no longer have to answer ID verification questions from them. And Alliants new system also allows you to use voice commands (e.g., Check My Balance or Transfer Money) rather than pressing the numbers or keys on your phone, freeing your hands and expediting your transactions. Here are a couple of things you can do today to ensure your transition to the new system is seamless: 1) Know your member number. 2) Create a four digit phone banking Personal Identication Number (PIN). If you currently use our Self Service Telephone (SST) system, then you already have a PIN to continue using for our new system. How to access your member number. The easiest, quickest way to find your member number is on your Alliant statement. Your member number appears at the top right corner of the statement under Account No. If you dont have a statement on hand, you can easily access your Alliant statements in Alliant Online Banking at www.alliantcreditunion.org. After you log in, just click on the Statements & Tax Forms link in the right sidebar, then click the link to your current Alliant statement.

Want to discuss a nancial strategy to prepare for retirement? Visit www.alliantcreditunion.org or call 800-328-1935, option 9 to set up a no-cost, no-obligation nancial planning session with a nancial consultant with Alliant Retirement and Investment Services.

RETIREMENT AND INVESTMENT SERVICES

Representative is neither a tax advisor nor attorney. For information regarding your specic tax situation, please consult a tax professional. For legal questions, including a discussion about estate planning, please consult your attorney. Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed afliates. Alliant CreditAND Union and Alliant Retirement RETIREMENT and Investment Services are not registered broker/dealers and are not afliated with LPL Financial.

How to establish your phone banking PIN. You can create your phone banking PIN right now through Alliant Online Banking. Choose Settings, then Self Service Telephone (SST) and follow the prompts. This method allows you to set your own PIN number so that you can select a number that is easy for you to remember. Or call an Alliant Member Service Representative 24/7 at 800-328-1935 to request that a random PIN be mailed to you. Please note that your phone banking PIN does not affect any existing Alliant PINs that you already have, such as those for debit cards or convenience cards. Always keep your PIN private and confidential, and treat it as you would a credit card or check. Dont worry. Were here to help. If you dont get a chance to look up your member number or obtain a PIN before the new phone system launches, dont worry. Our Member Service Representatives will still be able to take care of you and then help get you set up to take advantage of the new phone banking system on your next call.

INVESTMENT SERVICES

Not NCUA Insured

No Credit Union Guarantee

May Lose Value

*CFP=CERTIFIED FINANCIAL PLANNER. The nancial consultants of Alliant Retirement and Investment Services are registered representatives of LPL Financial.
www.alliantcreditunion.org