CDB is one of the best investments in Brazil! It is a low-risk application for all tastes, with high profitability and immediate liquidity, which you can redeem whenever you want, without having to wait.
We’ve prepared a series of articles that we’ll be publishing over the next few weeks called My First Investment. Today, we are going to talk about CDBs, which have FGC protection of up to R$ 250,000 and yield more than Tesouro Direto.
What is a CBD?
CDB stands for Bank Deposit Certificate.
In practice, as with any fixed income investment, you lend your money to someone who agrees to return your money on an agreed date plus interest in the form of earnings.
It is very similar to the investment logic in Tesouro Direto, but in this case your invested money goes to a bank, not the government, as in the case of the Treasury.
Is investing in CDB safe?
Yes it is very safe!
Every investment in CDBs is protected by the FGC (Credit Guarantor Fund) for up to R$250 thousand per financial institution, limited to R$1 million per CPF.
This means that all the money invested in CDBs that is within these limits is guaranteed and in case of bankruptcy all your money is returned.
What if the broker goes bankrupt?
In that case, don’t worry.
Every application in CDBs belongs to you and is registered in your name and your CPF.
In this way, if the broker used to make the application ceases to exist, your application will continue to exist, you just need to choose a new broker to continue monitoring the profitability and be able to receive your money back on the chosen date.
How much money does the CDB earn?
There are basically three types of returns on investment in CDBs: fixed rate, post-fixed and inflation-linked. If you want to understand more about it, it’s worth clicking here.
What matters is that typically the rates of return on investments in CDBs tend to yield more than Treasury Direct investments, even with all the layers of security we mentioned.
In the video at the top of this article we show that there are CDBs with profitability above 13% per year! There, we recorded the screen showing that investing R$100 per month in CDBs like this one can earn more than R$1 million in longer plans.
And this rate should continue to rise between 2021 and 2022 given the high Selic rate, which increases the profitability of these investments.
There are CDBs for everyone: with or without daily liquidity, suitable for both your emergency reserve and medium and long-term strategies.
We showed in the video above that even with the incidence of income tax, the CDB is still worth much more than savings.
Is it possible to invest through the bank or CDB is only in brokers?
CDBs are available from both traditional banks and more technological brokers.
You will likely find better opportunities and better yields on CDBs available from brokers, even though banks have improved a lot in recent years.
To help you in that decision, we’ve made a comparison showing where your money earns more: at banks or brokers? It’s all in the video down here!
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