Alerus Money Market Rates are Decreasing

Effective October 1st, 2025, the Alerus Money Market interest rate will adjust to 4.21% (4.29% APY). As of Septebmer 30th, the 1-year yield on the Alerus Money Market is 4.49%. Alerus benchmarks and sets this rate, it is subject to change at any time. Notification of any change is provided ten business days before the effective date. If you have any questions, please contact your Alerus Retirement and Benefits Service Team.

As the Federal Reserve lowers their Fed Funds Rate, it has the effect of lowering short-term rates in the financial markets. Money markets, savings accounts, and short-term Treasury bills typically follow the changes the Federal Reserve makes to short-term rates. Should the Federal Reserve continue to lower the Fed Funds Rate, then you could expect to see this money market rate decline too.

Alerus Money Market Rates are Decreasing

Effective August 1st, 2025, the Alerus Money Market interest rate will adjust to 4.20% (4.28% APY). As of July 31st, the 1-year yield on the Alerus Money Market is 4.67%. Alerus benchmarks and sets this rate, it is subject to change at any time. Notification of any change is provided ten business days before the effective date. If you have any questions, please contact your Alerus Retirement and Benefits Service Team.

As the Federal Reserve lowers their Fed Funds Rate, it has the effect of lowering short-term rates in the financial markets. Money markets, savings accounts, and short-term Treasury bills typically follow the changes the Federal Reserve makes to short-term rates. Should the Federal Reserve continue to lower the Fed Funds Rate, then you could expect to see this money market rate decline too.

Alerus Money Market Rates are Decreasing

Effective July 1st, 2025, the Alerus Money Market interest rate will adjust to 4.18% (4.26% APY). As of June 30th, the 1-year yield on the Alerus Money Market is 4.77%. Alerus benchmarks and sets this rate, it is subject to change at any time. Notification of any change is provided ten business days before the effective date. If you have any questions, please contact your Alerus Retirement and Benefits Service Team.

As the Federal Reserve lowers their Fed Funds Rate, it has the effect of lowering short-term rates in the financial markets. Money markets, savings accounts, and short-term Treasury bills typically follow the changes the Federal Reserve makes to short-term rates.

Alerus Money Market Rates are Decreasing

Effective June 1st, 2025, the Alerus Money Market interest rate will adjust to 4.19% (4.27% APY). As of May 31st, the 1-year yield on the Alerus Money Market is 4.85%. Alerus benchmarks and sets this rate, it is subject to change at any time. Notification of any change is provided ten business days before the effective date. If you have any questions, please contact your Alerus Retirement and Benefits Service Team.

Alerus Money Market Rates are Decreasing

Effective April 1st, 2025, the Alerus Money Market interest rate will adjust to 4.22% (4.30% APY). As of March 31st, the 1-year yield on the Alerus Money Market is 5.03%. Alerus benchmarks and sets this rate on a quarterly basis, however, the rate is subject to change at any time.

As the Federal Reserve lowers their Fed Funds Rate, it has the effect of lowering short-term rates in the financial markets. Money markets, savings accounts, and short-term Treasury bills typically follow the changes the Federal Reserve makes to short-term rates.

Updated Loan Interest Rates

PLAN LOAN INTEREST RATE Decreases FROM 8.75% TO 8.50%

The Dauphin County, PA Deferred Compensation Plan offers participants the opportunity to take loans against their account value.  So that you do not fall behind with your retirement income goals, you are required to pay interest on the loan.  The plan's loan interest rate is 1%+ the prime interest rate. The key point is that you are paying yourself the interest.  Essentially, you are acting as your own bank.  Below is more information on how the loan interest rate is calculated and the plan's loan provisions. These new rates take effect on November 9, 2024

THE PRIME INTEREST RATE

You might have heard that the Federal Reserve Bank (Fed) decreased its Federal Funds Target Rate (Target Rate) recently.  The Target Rate is the suggested range of interest which one bank may charge another for overnight lending.  The Fed does not set the prime interest rate. However, once the Fed establishes the Target Rate, then U.S. banks take action to set the rate for their best or "prime" customers. Generally, a bank's prime rate is linked to the Target Rate and moves in lockstep with it. Each U.S. bank can determine its own "prime" rate that it offers customers. However, there is no central authority which sets "prime."

The loan interest rate is based upon the prime interest rate.  The Wall Street Journal (WSJ) publishes the prime rate, which is determined by surveying the thirty largest banks in order to come up with a consensus amount.  The WSJ reports changes to the prime rate when the surveyed banks have adopted a new rate, which occurred when the Fed changed its Target Rate.

The Wall Street Journal (WSJ) published a change in the prime interest rate decreasing it from 7.75 percent to 7.50 percent, effective December 12, 2024..

PLAN LOAN PROVISIONS

Any active employee may borrow money from his/her account for any reasonable purpose. Provisions of the loan program are as follows:

• You may borrow up to half of your total vested account balance for any purpose, with a minimum loan of $1,000 and a maximum loan of $50,000.

• The maximum number of loans a participant may leave outstanding at any time is two.

• You may choose a repayment schedule of up to five years, except if the loan is used to acquire your principal residence (up to 15 years). All loans will be paid back through payroll deduction.

• The interest rate charged on your loan will be 1% above the prime interest rate. All interest that you pay on your loan is credited to your account.

• A one-time, non-refundable fee of $75 plus a $25 per year administrative fee will be deducted from your loan proceeds.

• It may take three to four weeks to process your loan application, so plan accordingly.

If you have questions regarding the plan loan provisions, Contact Us.

Alerus Money Market Rates are Decreasing

Effective January 1st, 2025, the Alerus Money Market interest rate will adjust to 4.51% (4.60% APY). As of December 31st, the 1-year yield on the Alerus Money Market is 5.30%. Alerus benchmarks and sets this rate on a quarterly basis, however, the rate is subject to change at any time.

As the Federal Reserve lowers their Fed Funds Rate, it has the effect of lowering short-term rates in the financial markets. Money markets, savings accounts, and short-term Treasury bills typically follow the changes the Federal Reserve makes to short-term rates.

2025 Open Enrollments

We look forward to seeing you at the 2025 open enrollments meeting organized by Dauphin County HR. We encourage you to check out our open enrollment page using the link below.

Alerus Money Market Rates are Decreasing

Effective December 1st, 2024, the Alerus Money Market interest rate will adjust to 4.58% (4.68% APY). As of November 30th, the 1-year yield on the Alerus Money Market is 5.36%. Alerus benchmarks and sets this rate on a quarterly basis, however, the rate is subject to change at any time. Notification of any change is provided ten business days before the effective date. If you have any questions, please contact your Alerus Retirement and Benefits Service Team.

As the Federal Reserve lowers their Fed Funds Rate, it has the effect of lowering short-term rates in the financial markets. Money markets, savings accounts, and short-term Treasury bills typically follow the changes the Federal Reserve makes to short-term rates.

Updated Loan Interest Rates

PLAN LOAN INTEREST RATE Decreased FROM 9.00% TO 8.75%

The Dauphin County, PA Deferred Compensation Plan offers participants the opportunity to take loans against their account value.  So that you do not fall behind with your retirement income goals, you are required to pay interest on the loan.  The plan's loan interest rate is 1%+ the prime interest rate. The key point is that you are paying yourself the interest.  Essentially, you are acting as your own bank.  Below is more information on how the loan interest rate is calculated and the plan's loan provisions. These new rates take effect on November 9, 2024

THE PRIME INTEREST RATE

You might have heard that the Federal Reserve Bank (Fed) increased its Federal Funds Target Rate (Target Rate) recently.  The Target Rate is the suggested range of interest which one bank may charge another for overnight lending.  The Fed does not set the prime interest rate. However, once the Fed establishes the Target Rate, then U.S. banks take action to set the rate for their best or "prime" customers. Generally, a bank's prime rate is linked to the Target Rate and moves in lockstep with it. Each U.S. bank can determine its own "prime" rate that it offers customers. However, there is no central authority which sets "prime."

The loan interest rate is based upon the prime interest rate.  The Wall Street Journal (WSJ) publishes the prime rate, which is determined by surveying the thirty largest banks in order to come up with a consensus amount.  The WSJ reports changes to the prime rate when the surveyed banks have adopted a new rate, which occurred when the Fed changed its Target Rate.

The Wall Street Journal (WSJ) published a change in the prime interest rate decreasing it from 8.00 percent to 7.75 percent, effective November 8, 2024..

PLAN LOAN PROVISIONS

Any active employee may borrow money from his/her account for any reasonable purpose. Provisions of the loan program are as follows:

• You may borrow up to half of your total vested account balance for any purpose, with a minimum loan of $1,000 and a maximum loan of $50,000.

• The maximum number of loans a participant may leave outstanding at any time is two.

• You may choose a repayment schedule of up to five years, except if the loan is used to acquire your principal residence (up to 15 years). All loans will be paid back through payroll deduction.

• The interest rate charged on your loan will be 1% above the prime interest rate. All interest that you pay on your loan is credited to your account.

• A one-time, non-refundable fee of $75 plus a $25 per year administrative fee will be deducted from your loan proceeds.

• It may take three to four weeks to process your loan application, so plan accordingly.

If you have questions regarding the plan loan provisions, Contact Us.