Effective August 1, 2026, the Annual Percentage Yield (APY) on the Alerus Money Market will change to 3.59% (3.53% interest rate). As of July 31st, the 1-year yield on the Alerus Money Market is 3.86%. 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. Conversely, should the Federal Reserve decide to increase the Fed Funds Rate, the yield on money market funds could be expected to rise.
⠀
Recently, the expectation is that the Federal Reserve will not lower rates this year and may instead increase them; hence the slight increase in the interest rate of the Alerus Money Market Fund.