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A savings account is one of the most traditional and popular forms of investment among Brazilians. Its ease of use, perceived security, and income tax exemption for individuals are some of the reasons why many people choose to keep their money in this type of account. However, with recent changes in the economy and interest rates, many people wonder: how much does a savings account really yield nowadays?
Currently, the yield on a savings account is directly tied to the Selic rate, the economy's benchmark interest rate. When the Selic rate is above 8.5% per year, a savings account yields 0.5% per month plus the Reference Rate (TR). On the other hand, if the Selic rate is equal to or below 8.5%, the yield drops to 70% of the Selic rate plus the TR. This link means that the yield on a savings account varies according to economic fluctuations, which is crucial to understand for anyone considering this type of investment.
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Understanding savings account yields
To illustrate, let’s consider a practical example. If you deposit R$50,000 into a savings account and the Selic rate is above 8.5%, your monthly return would be 0.5% of that amount, plus the TR, which is currently nearly zero. This means an approximate gain of R$250 per month. However, if the Selic rate is below 8.5%, the return would be 70% of the Selic rate, which, depending on the current rate, may result in a significantly lower amount.
It is important to note that, although savings accounts are exempt from income tax and offer easy access to your money, their returns are often lower than those of other forms of investment, especially in scenarios with a lower Selic rate. Therefore, it is essential to consider your financial goals and consult a specialist before deciding where to invest your money.
Alternatives to this investment
Given the often modest returns of savings accounts, many investors seek more profitable alternatives. Fixed-income investments such as CDBs, LCIs, LCAs, and even some investment funds can offer higher returns while maintaining an acceptable level of security. However, it is crucial to be aware of the conditions, fees, and possible taxes associated with these investments, as well as to consider your risk profile and investment horizon.
