Alliant to Modify Rewards on 2.5% Cashback Card

Beginning in July 2021, Alliant is changing its rewards structure on the Alliant Cashback Visa® Signature Credit Card. Alliant will offer cardholders a tiered rewards program that will impose new requirements in order to snag that solid 2.5% cash-back rate on purchases.

Here’s a look at what’s changing.

New rewards requirements

The new tiered rewards program will eliminate the card’s current $99 annual fee. After the July 2021 changes, the card will have a $0 annual fee.

Cardholders will be able to earn two different cash-back rates:

• 2.5% cash back: You’ll earn this rate on up to $10,000 of eligible purchases per billing cycle if you maintain an average daily balance of $1,000 or more in an Alliant High-Rate Checking account for at least at two months of the third and fourth quarters in 2021 and for every quarter in 2022. Terms apply.

• 1.5% cash back: This rate applies to all other purchases that don’t qualify for the elevated cash-back rate.

Previously, you weren’t required to have a checking account to earn 2.5% cash back. Cardholders can open the checking account online. The High-Rate Checking Account is free, it doesn’t charge any monthly maintenance fees. Plus, it earns a decent rate.

In addition to having the checking account, you’ll have to opt in for electronic statements and have at least one monthly deposit made into the account. Eligible deposits include direct deposits, payroll deposits, ATM deposits, mobile check deposits or transfers from other financial institutions.

» MORE: Best cash back credit cards now

Is it still a good deal?

The latest changes may offer a better deal for those who can afford to maintain $1,000 in Alliant’s High-Rate Checking account. You may have to complete a few extra steps to earn the 2.5% back, but you’re not required to pay an annual fee.

Cardholders also won’t be out of luck when they meet the card’s billing cycle spending limit. Before, if you met the cap, you stopped earning rewards. Now, you will earn a decent 1.5% cash-back rate ― that’s the gold standard among credit cards.

In addition to meeting the requirements mentioned above, membership will also be required to qualify for the Alliant Cashback Visa® Signature Credit Card. It’s easy to join if you can’t qualify through your place of employment or an eligible family member. You can become a member of Foster Care to Success, and Alliant pays a $5 membership fee to this organization on your behalf.

What happens if I already have the Alliant Cashback Visa® Signature Credit Card card?

Current card holders will be automatically placed into the 2.5% rewards tier for the July, August and September 2021 billing cycles. You'll still earn 2.5% cash back rewards on eligible purchases up to $10,000 per billing cycle.

In order to earn 2.5% rewards for the fourth quarter billing cycles of 2021, you'll need to meet the new requirements of opening and maintaining an average daily balance of $1,000 or more in an Alliant High-Rate Checking account, in addition to making one eligible deposit per month.

This isn’t the first time Alliant has modified its rewards structure. The credit union previously switched from offering 3% cash back in the first year to an ongoing 2.5% rewards rate.