What is a Savings Account?
The savings account is the most well-known investment in Brazil. Almost everyone has or has had one. It’s simple, exempt from income tax, and has immediate liquidity. However, it yields little — generally losing to inflation.
How it yields
The rule changed in 2012:
- Selic > 8.5% per year: savings account yields 0.5% per month + TR
- Selic ≤ 8.5% per year: savings account yields 70% of Selic + TR
Savings Account vs. other options
| Investment | Annual Yield* | IR | Liquidity |
|---|---|---|---|
| Savings Account | ~7% | Exempt | Immediate |
| Tesouro Selic | ~13% | 15-22.5% | D+1 |
| CDB 100% CDI | ~13% | 15-22.5% | Daily |
| LCI/LCA | ~10% | Exempt | 90+ days |
*Approximate values with Selic at 13.75%
Why the savings account is not the best investment
- Yields less than inflation in many scenarios
- Yield is only credited on the “anniversary” (day of deposit)
- If withdrawn before the anniversary, the monthly yield is lost
- There are options just as safe that yield more (Tesouro Selic)
When the savings account makes sense
- For very small amounts (less than R$ 100)
- For those who don’t want any complexity
- As an intermediate account before investing