Introduction to Certificates of Deposit (CDs) and Government Bonds (interbank rate)

When it comes to investing, it’s essential to understand the available options and how they can fit your investor profile. Two of the most popular investments are CDs (Certificates of Deposit) and government bonds indexed to the interbank rate. But, after all, which one yields more in 2026? To understand this, let’s dive into the details of each.

What is a CD?

A CD is a type of fixed‑income investment offered by banks and financial institutions. It works like a loan you make to the bank, and in return, the bank pays an interest rate. CDs can be pre‑fixed, post‑fixed, or hybrid, each with its own way of calculating interest.

What is a Government Bond?

A government bond, on the other hand, is a fixed‑income investment issued by the national treasury, with a guarantee from the government. It is indexed to the interbank rate, which is the basic interest rate of the economy defined by the central bank. This means that the yield of the bond follows the variations of the interbank rate.

Yields and Simulations

To better understand the yields, let’s consider some examples. Suppose you have $200 to invest and are deciding between a pre‑fixed CD with 10% per year and a government bond with the current interbank rate (suppose 6% per year).

  • CD: With the pre‑fixed CD at 10% per year, after 1 year you would have approximately $220 ($200 in capital + $20 in interest).
  • Government Bond: With the bond at 6% per year, after 1 year you would have approximately $212 ($200 in capital + $12 in interest).

Rendimentos e Simulações

However, these numbers are simplified and do not consider possible variations of the interbank rate throughout the year, which can affect the yield of the bond. Additionally, CD interest rates can be higher, but they can also be influenced by the credibility of the issuing bank.

Risks

CD Risks

CDs, although considered a low‑risk investment, are not completely risk‑free. The main risk is the credit risk of the issuing bank. If the bank has financial problems, there may be difficulty redeeming the investment. However, deposit insurance offers protection of up to $50,000 per account holder and financial institution.

Government Bond Risks

Government bonds, being an investment with a government guarantee, are considered very low‑risk. However, the investor is subject to variations in the interbank rate, which can affect the yield. Additionally, because some bonds are indexed to inflation (inflation‑indexed bonds), the investor may also be affected by variations in inflation indices.

Evaluating the Investor Profile

When deciding between a CD and a government bond, it’s crucial to evaluate your investor profile. If you’re a conservative investor who seeks security and is willing to give up a bit of yield in exchange for lower risk, a government bond may be a good option. On the other hand, if you’re willing to take on a bit more risk in search of a higher yield, a CD may be more attractive.

Considering Other Options

In addition to CDs and government bonds, there are other investment options in the market, such as investment funds, stocks, and even cryptocurrency investments. Each of these options has its own risks and benefits, and it’s essential to conduct in‑depth research and consider your investor profile before making any decision.

Avaliando o Perfil de Investidor

Next Steps

Now that you have a better idea about CDs and government bonds, it’s time to conduct a more detailed analysis of your financial needs and objectives. Consider evaluating whether it makes sense for your profile to invest in one or both options. For more information, you can visit the website of the [central bank] or the [government bond platform] to better understand how these investments work and how they can fit into your financial strategy.

Próximos passos

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