Hey ,

Later tonight, the U.S. Federal Reserve is expected to lower interest rates, which could affect us in Singapore too.

Source: Trading Economics

When the U.S. lowers its rates, our rates here often drop as well. Here’s what that might mean for you:

For Savers:

• T-bills and Singapore Savings Bond: These are safe ways to save money with the government. Interest rates on them are starting to drop and may keep falling over the next few months. For example, the latest 6-month
• T-bills now pay 3.1%, down from 3.4% last month. If you want to lock in higher interest rates, now might be a good time to act.

• Bank Savings Accounts: So far, only UOB has reduced interest rates on its savings accounts, but other banks may do the same soon. This means your savings account may not give you as much interest as it does now.

For Homeowners:

• If you have a home loan, good news! Lower interest rates could mean lower monthly payments if you refinance your mortgage.

• If you need the latest loan rate packages, do reach out!

For Investors:

• Singapore REITs (Real Estate Investment Trusts): Lower rates often make property values go up, so REITs might become more valuable. This could be a good opportunity for investors.

• Gold: When the U.S. dollar weakens, gold usually becomes more valuable. Gold can be a smart choice to protect your money when interest rates fall.

• Bonds: Mid to Long-term bonds might be a good idea. If you buy bonds now with higher interest rates, you could get better returns as rates drop.

In short, lower interest rates can affect us in different ways. Savings accounts and T-bills might pay less, but if you have a mortgage or invest in things like REITs, gold, or bonds, you could benefit.

What will you do next?

Best regards,

Zest Chia

Executive Wealth Consultant | Associate Estate Planning Practitioner |

Licensed General Insurance Advisory

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