The US Fed has finally cut rates again. Trimming them to 4.00%–4.25% in September 2025, with more cuts expected this year. Singapore, as always, feels the ripple. While global headlines may focus on Wall Street, the real question for us on this side of the world is simple: How does this affect your deposits, your investments, and most importantly, your property loan?

Are Fixed Deposits Still Worth Parking Cash In?

Not too long ago, banks were dangling 2.5%–3% fixed deposits like candy. Today? Promotions hover closer to 1.5%–1.6%, with some savings accounts trimming rates too. For those who parked six-figure sums hoping for a safe return, the yield is looking slimmer by the quarter.

👉 Rozi’s Field Note: If your financial plan was to “let the bank pay me 3% for doing nothing,” it may be time to rethink. Lower rates mean your cash is safe, yes, but it’s also snoozing.

Why Are Interest Rates Falling in Singapore?

Singapore’s interest rate scene is tightly linked to the US Fed. When Washington sneezes, SORA (our local benchmark) shifts too. But here’s the nuance: Singapore has been swimming in liquidity, with safe-haven money flowing in. That cushions us from drastic falls, but directionally, we’re still following the Fed.

👉 Rozi’s Field Note: Don’t expect local deposits to suddenly pay “zero.” But do expect less bang for your buck.

Should You Be Taking on More Risk Now?

With fixed deposits shrinking, investors are tempted to wander into equities, bonds, or funds for higher yields. But these come with volatility. Experts remind us: keep 3–6 months of emergency cash untouched before chasing returns.

👉 Rozi’s Field Note: Yield is never free. If you’re dipping into riskier assets, do it with eyes open and pockets padded for storms.

What Do Falling Rates Mean for Your Property Loan?

Here’s where things get interesting. Lower interest rates don’t just hurt savers, they help borrowers. Floating-rate mortgages pegged to SORA are already easing, and banks are rolling out fixed packages around 1.7%–1.9%. That’s a dramatic drop from the 3% levels just two years ago.

  • A $1M loan at 3% costs about $4,742/month.
  • The same loan at 1.8%? Around $4,142/month.
  • That’s $600 saved every month, or more than $7,000 a year.

👉 Rozi’s Field Note: Refinancing is the quiet hero move in 2025. If you locked in during the high-rate days, now is the time to recheck your package.

Will Cheaper Loans Push Buyers Back In?

Cheaper loans improve affordability, especially for first-time buyers. Under TDSR rules, that lower monthly repayment stretches eligibility further. A family once capped at a $1M loan may now qualify for a little more breathing space.

But let’s be clear: cooling measures aren’t going away. MAS and HDB policies like TDSR, MSR, and ABSD still keep a tight leash on speculative buying.

👉 Rozi’s Field Note: Lower rates are a sweetener, not a free-for-all. The fundamentals, job stability, holding power and long-term plans still matter more than a 1% interest swing.

So Who Really Wins When Rates Fall?

Savers will need to re-balance their portfolios, because deposit yields are shrinking.
Borrowers can refinance their loans and save thousands of dollars each year.
Buyers may feel more confident about affordability, but cooling measures and guardrails will still keep the market in check.

In other words, falling rates flip the script. What you lose as a depositor, you gain back if you are holding a mortgage.

✨ Rozi’s Closing Field Note:
Money moves in cycles. Rates rise, rates fall, and strategies must adjust. If you’re a saver, this is a wake-up call. If you’re a homeowner, this is your chance to trim costs. And if you’re a buyer, remember, property is a marathon, not a sprint. Cheaper loans can open doors, but only wisdom keeps them open.