Effective July 1, 2026, the Annual Percentage Yield (APY) on the Alerus Money Market will change from 5.92% to 3.61% (3.55% interest rate). As of June 30th, the 1-year yield on the Alerus Money Market is 3.92%. 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.
As the Federal Reserve lowers its Fed Funds Rate, it has the effect of lowering short-term rates in the financial markets. Money market accounts, 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, you could expect to see this money market rate decline as well. Likewise, should they raise rates, you could expect short-term rates to increase.