The Selic maintains its upward trend and reaches 10.75% per year. In this column I want to address myself particularly to people who invest in savings, aware of their very low risk tolerance.
How is the competitiveness of savings in this context? Savings don’t look good in this photo. The higher the Selic, the lower your return when compared to fixed income investment alternatives. The fixed remuneration of 0.5% per month, equivalent to 6.17% per year, represents a return well below the 10.75% of the Selic rate.
What further complicates the situation for those who invest in savings is that the Selic rate should remain high and at double-digit levels throughout the year. So, it’s not just about a bad moment that will soon pass, you can’t pretend that nothing is happening, that it’s okay to stay in savings…
Millions of people prefer savings, giving little or no importance to profitability. The reasons they do this are personal, but I can intuit and list a few.
They don’t consider themselves investors, just savers. They know little or nothing about other financial investments; they appreciate that you have a defined income, you don’t need to negotiate with anyone; simple movement, similar to a current account, with free deposits and withdrawals; free of costs and taxes. I can still think of two mistaken beliefs: that the government guarantees and that it at least yields to inflation.
If there were no alternative in the fixed income market, with the same level of risk, all that would be left would be to regret it. But alternatives exist, more profitable, without taking more risk. The investor only needs to exchange the savings deposit for other types of bank deposits. All guaranteed by the FGC (Credit Guarantee Fund).
The CDB, for example, available to all savers and investors, small and large, has daily liquidity, the investor can redeem it on any day of the month and will earn a proportional return, whatever the period elapsed. Better than savings that only credit earnings on the account’s anniversary.
Yes, it pays Income Tax, worse than savings in that sense. But it all depends on the rate the investor gets. Most banks offer 100% of the CDI, with daily liquidity, exceeding the net return on savings despite the IR. The expiration date is long, you don’t have to keep renewing every moment.
Better than the CDB, it is worth researching the letters, LCA and LCI, exempt from income tax. The market offers investments with a rate between 90% and 100% of the CDI, net, without tax. Guaranteed by the FGC. Okay, there’s a little problem, not everything is perfect. This application normally has a grace period of 90 days. It means that you cannot request redemption within the first 90 days, but after this period, liquidity will be daily, with the same contracted profitability. The investor has to research and negotiate to get the best option. At maturity, yes, the application expires, you must renegotiate everything again.
Ah, I cannot fail to mention the Selic Treasury, a public bond that pays 100% of the Selic rate, subject to income tax and free of charge for investments of up to R$ 10,000 per CPF.
Do you think it’s complicated? Don’t like intermediaries and feel insecure with the salespeople’s speech? Do you only trust your savings account? Do you believe the difference is small and not worth the work? So don’t do anything, leave your money where it feels safe and secure. It might not be the best yield, but it might be the most suitable application for you.
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
