If you’re the type to follow and have always been on the lookout for mutual funds, you must have noticed another hike in the prime rate in Brazil, which was 1.50%. At the moment, Selic’s yield is 9.25%, so how is the savings income?
What does this increase mean for the investor? Let’s understand a little about this topic and try to answer these questions that many Brazilians are asking now.
Fixed Income and Silica Investments
Selic is the base interest rate in Brazil, and it corresponds to the income of most investments in the country, including savings. You must understand that the higher the Selic, the higher the return on other investment securities and digital accounts based on Selic or CDI, which have only -0.10 percentage points below the base rate.
Due to the increase in inflation in the country, Selic experienced consecutive increases. As a result, the rise in the prime rate is immediately evident, which has a positive effect on the income account from savings, as well as from other fixed income applications and digital banking.
In the case of savings, what is the yield now with Selic at 9.25%?
With this increase in Selic, the savings account becomes different, it may yield 70% of Selic until it reaches the 8.5% level. With this, we noticed a slight increase in the profitability of savings, considering that their income until Wednesday, December 8, was 5.43% annually.
Once the base rate exceeds the percentage limit, the savings can achieve a flat rate of about 0.5% per month for a total of 6017% per year. With a more practical explanation, if you save R$1,000.00 today in your savings account, it will result in R$5.00 per month and R$61.70 after a year.
What about digital banks?
The vast majority of financial institutions offer a direct return on the balance, under the CDI ratio. PagBank, C6, Nubank and Mercado Pago have 100% return on CDI. In other words, they will guarantee 9.15% profitability annually to their clients.
“Music fanatic. Very humble explorer. Analyst. Travel fanatic. Extreme television teacher. Gamer.”