As the Federal Reserve Bank raises their Fed Funds Rate, it flows through rates banks charge on their loans, what they pay on their deposits, and yield on money market accounts. Over the past year, money market rates have risen dramatically. Below is Alerus’s announcement on their money market rate increase that will take affect next week.
“Effective April 1st, 2023, the Alerus Money Market interest rate will increase to 4.53% (4.63% APY). As of March 31st, the 1-year yield on the Alerus Money Market is 1.72%, and the 5-year yield is 1.23%. 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.”
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