🔍 SORA has been trending lower — the 3‑month SORA is now around 2.26 %, with 1‑month SORA at about 2.19 % (June 2025) . This steady decline reflects stronger capital inflows and easing borrowing demand in Singapore, a clear signal that monetary conditions are loosening.

But what's the broader picture for fixed deposits?

📌 Context 

• SORA replaces SIBOR/SOR as the benchmark for SGD lending — it's fully transaction‑based and more transparent .

• Historically, 3‑month SORA peaked near ~3.6 % in late 2024 and has fallen over 130 basis points in a year — a meaningful downward trend .

• MAS expects SORA to edge lower through 2025 as inflation eases, though upside risks remain if global and U.S. rate narratives pivot .

💡 Insights for Fixed Deposit Strategy

1. Right‑time your FD – With floating‑rate-linked instruments also softening, locking in fixed deposits at today's ~2–3 % yields could secure stable income, especially vs SORA-linked alternatives that may dip further.

2. Portfolio allocation – A balanced investor might position ~20–30 % in short-term FDs for liquidity and safety, while using the rest to chase yield in dividend or rate-sensitive equities.

3. Bank selection matters – Look for banks offering 2.5–3 % on 6–12 month FDs. Some digital banks may still be quoting higher margins as they chase deposits.

4. SORA-linked loans vs FDs – If you hold SORA-referencing loans (e.g., mortgages or corporate lines), the falling SORA directly eases interest costs — offset any FD interest earned.

5. Macro volatility alert – A Trump‑2.0 narrative or unexpected inflation resurgence could reverse SORA's decline. In that scenario, floating rate payers might see rising costs — another reason to fix rates now.

✅ My Technical Take

• Distribution strategy: stagger FDs in tranches (e.g., 3, 6, 12 months) to capture potential yield rebounds while keeping flexibility.

• Active product hunt: keep an eye on offerings from smaller digital banks — some are still pricing FDs aggressively to gain traction.

• Blend with SORA-linked products: I’d pair fixed deposits with an SGD SORA-savings account to benefit from monthly accrual and liquidity.

📊 Sample Portfolio Structure

30 % in 6-month FDs at ~2.7 %

20 % in 12-month FDs at ~3 %

20 % in SORA savings yielding ~2.1 % (compounding monthly)

30 % in diversified equities/REITs for income growth

All in, this should deliver a ~2.5–3 % blended yield, with flexibility to re-strategize if SORA reverses.