What is CDI?
The CDI (Certificado de Depósito Interbancário) is the interest rate used in loans between banks. In practice, it is the reference for most fixed-income investments in Brazil.
CDI vs Selic
The CDI closely follows the Selic rate (usually 0.10% below). If the Selic is at 14.75%, the CDI is around 14.65%.
Why does it matter?
When an investment yields “100% of the CDI”, it means it pays exactly the CDI rate. Examples:
- 100% CDI = standard yield
- 110% CDI = above average (good)
- 80% CDI = below average (bad, like a savings account)
How much does it yield?
With CDI at 14.65% per year:
- R$ 1,000 invested = ~R$ 146.50/year (gross)
- After deducting income tax (15-22.5%), it’s between R$ 113 and R$ 124/year net