Effective September 1, 2026, the Annual Percentage Yield (APY) on the Alerus Money Market will change to 3.63% (3.57% interest rate). As of August 31st, the 1-year yield on the Alerus Money Market is 3.81%. 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.
Last year, when the Federal Reserve lowered the Fed Funds Rate, it had the effect of lowering short-term rates in the financial markets. Money market accounts, savings accounts, and short-term Treasury bills followed the Federal Reserve's lead, and rates fell.
Current expectations are that the Federal Reserve will hold rates steady or possibly raise them. The Fed has left its target range at 3.50%–3.75% since June, and the Committee's own projections point to at least one increase before year-end, though futures markets put the odds of a hike at the September meeting closer to one in three. As a result, we have seen small increases in short-term yields this year.
Should the Federal Reserve raise the Fed Funds Rate, you could expect the yield on your money market fund to increase as well. Conversely, should the Federal Reserve decide to lower the Fed Funds Rate, that yield would likely decline.