What it is

Tesouro Direto is a program created by the Brazilian government that allows citizens to invest directly in public bonds, such as LTNs (Letras do Tesouro Nacional) and NTNs (Notas do Tesouro Nacional). These bonds are basically loans you make to the government, which, in return, pays interest on the value invested. It’s a way to put your money to work safely and profitably, because the bonds are guaranteed by the government.

The Tesouro Direto bonds vary in maturities and interest rates, which means you can choose the one that best fits your financial needs. For example, if you have R$ 5,000 to invest and don’t need the money for the next 5 years, you can opt for a longer‑term bond, which usually offers higher interest rates.

What it is

  • LTNs: Short‑term bonds, usually 1 to 5 years, offering fixed interest rates.
  • NTNs: Longer‑term bonds, ranging from 5 to 10 years, also offering fixed interest rates, but they may be adjusted by the IPCA (Índice de Preços ao Consumidor Amplo), which helps protect the investment’s value against inflation.

How it works

The operation of Tesouro Direto is relatively simple. You buy a public bond at its nominal value (the amount for which the bond is issued) and, during the agreed term, the government pays interest on that amount. At the end of the term, the government returns the bond’s nominal value plus the accumulated interest. Practical tip: It’s important to understand that interest is paid periodically—monthly, quarterly, semi‑annually, or annually—depending on the bond you choose.

For example, if you invest R$ 3,000 in a bond with a 2‑year term and an annual rate of 8%, at the end of the term you will receive the R$ 3,000 back plus interest of R$ 480 (8% of R$ 3,000 for 2 years, using simple interest for simplicity). Practical tip: Always check current interest rates and available maturities before investing, as they can change.

Advantages

The main benefits of Tesouro Direto include:

  • Safety: Because the bonds are government‑guaranteed, the risk of loss is very low.
  • Yield: The interest paid can be higher than that offered by other low‑risk financial products.
  • Liquidity: Although bonds have fixed maturities, you can sell them before they mature if needed; however, you may face penalties or loss of interest.
  • Diversification: Tesouro Direto can be a good option to diversify your investment portfolio, reducing reliance on just one type of investment.

Practical tip: Consider Tesouro Direto as part of a long‑term investment strategy, because compound interest can significantly increase the value of your investment over time.

Advantages

Risks

Although Tesouro Direto is considered a low‑risk investment, there are some factors to consider:

  • Credit risk: Although low, there is a risk that the government might not honor its commitments.
  • Inflation risk: If inflation rises, the purchasing power of the invested money may decrease.
  • Liquidity risk: If you need the money before the bond’s maturity, you might not be able to sell it at nominal value or you could lose part of the interest.

Practical examples

Let’s look at a practical example. João earns R$ 6,000 per month and decides to invest R$ 1,000 each month in Tesouro Direto. With an annual interest rate of 9%, after 1 year João will have invested R$ 12,000 and earned about R$ 1,080 in interest, totaling R$ 13,080. Practical tip: Invest regularly to take advantage of compound interest.

Another example is Maria, who earns R$ 4,000 per month and decides to invest R$ 500 each month. With an annual interest rate of 8%, after 2 years Maria will have invested R$ 12,000 and earned about R$ 1,920 in interest, totaling R$ 13,920.

Start today

Don’t waste any more time—start investing in Tesouro Direto today. With the ease of buying and selling bonds online, you can begin with a minimum amount and increase your investments over time. Remember, the key to investment success is discipline and patience. Practical tip: Use an investment app to simplify the buying and selling process and to track your holdings easily and conveniently. Invest wisely and watch your wealth grow over time.