2023-08-31 21:38:55
Savings is one of the most popular investments in Brazil, but is it really the best option to make your money work? In this article, we’ll take a detailed look at savings yields, compare them to other investment options, and provide you with all the information you need to make the best financial decision.
How Does Savings Income Work?
The savings income is determined by specific rules. Until May 2012, savings yielded 0.5% per month plus the Referential Rate (TR). However, following that date, a new rule came into effect. Now, when the Selic rate, which is the basic interest rate in Brazil, is above 8.5% per year, the yield on savings becomes 0.5% per month plus the TR. If the Selic is equal to or below 8.5% per year, the savings yield will be 70% of the Selic rate plus the TR.
It is important to point out that the savings income is the same in all banks, regardless of whether you have savings at Caixa, Itaú, Santander or any other financial institution. The TR value varies daily, but is currently close to zero.
How Much Does Savings Currently Yield?
At the moment, the Selic rate is at 13.75% per annum. This means that the savings yield is 0.5% per month plus the TR. Considering the current Selic rate and the TR close to zero, we can say that the yield on savings is approximately 0.5% per month.
Comparing Savings Income with Other Investments
Although savings are a safe and easily accessible investment, it is important to analyze other options available on the market. There are fixed income investments that offer higher yields, such as CDBs (Bank Deposit Certificates), LCIs (Real Estate Letters of Credit) and LCAs (Agribusiness Letters of Credit). These investments often yield more than savings, especially if you’re looking for longer investment terms.
In addition to fixed income investments, it is also possible to consider investments in variable income, such as stocks and real estate funds. These options generally have higher volatility, but can offer significantly higher returns in the medium to long term.
Savings Income Simulation
To illustrate the return on savings, we are going to carry out a simulation considering different investment amounts and time periods. It is important to emphasize that the values presented are just estimates and may vary according to the Selic rate and the TR.
- Investment of R$10,000 in savings for 1 year: considering the yield of 0.5% per month, the final amount would be approximately R$10,600.
- Investment of BRL 50,000 in savings for 2 years: in this case, the final amount would be approximately BRL 54,000.
- Investment of R$100,000 in savings for 5 years: After 5 years, the estimated value would be approximately R$128,000.
These examples show that savings can be an interesting option for those seeking security and immediate liquidity. However, it is important to consider other investment options to obtain more attractive returns.
Real Return on Savings
When analyzing savings income, it is critical to consider inflation. Nominal profitability does not take into account the loss of purchasing power over time. Therefore, it is necessary to calculate the real profitability, which discounts inflation.
In recent years, savings accounts have shown negative real profitability in some periods, that is, the yield was below inflation. This means that the money invested in savings has lost value over time.
Investment Diversification
An efficient strategy to obtain better financial results is to diversify investments. By spreading your money across different types of investments, you reduce risk and increase the chances of earning higher returns.
In addition, it is important to know your investor profile and outline a strategy according to your goals and risk tolerance. Consulting a specialized professional can be a great option to help you make financial decisions.
Conclusion
Despite being a safe and easily accessible investment, savings do not offer the best returns on the market. It is important to consider other investment options, such as CDBs, LCIs, LCAs and variable income investments, to obtain more attractive returns.
Remember to diversify your investments and know your investor profile before making any decision. After all, the goal is to make your money work for you and reach your financial goals.
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