South Africans with debt can breathe a little easier since the South African Reserve Bank (SARB) began lowering interest rates.

The cumulative 150-basis-point reduction since September 2024 has brought the repo rate down to 6.75%.

Homeowners and borrowers are seeing relief with reductions in monthly repayments on loans and mortgages. For anyone with a sizeable mortgage or outstanding loans, the drop in rates translates directly into lower costs and increased disposable income.

Yet while debtors are celebrating, the news is less rosy for savers. A declining repo rate means that the interest paid on savings accounts and fixed deposits tends to fall, as well as offering lower returns to savers.

For South Africans looking to protect the value of their savings, it is time to reassess their savings strategy. In a falling rate environment, it makes sense to speak to a personal financial adviser and review the mix of savings and investment products.

Advisers may consider options such as growth-oriented equities and commodities, but the right mix depends on personal risk tolerance and time horizons. That matters because some equities and commodities can become overvalued, and chasing growth without guidance can lead to avoidable losses.