Protect or Not From Inflation

In times of high prices, you make the decision to invest to protect your money from inflation and, for that, you put your money in savings. But is this type of application really good to protect you from rising prices?

No Chat with Specialist, live program from UOLfinancial planner and investor Viviane Ferreira says that, despite savings being the preferred investment for Brazilians, its profitability leaves much to be desired.

Read her explanation and watch the program excerpt below. Chat with Specialist is a question-answer about investments exclusively for subscribers and is broadcast fortnightly, on Thursdays, from 15:00 to 16:00.

Savings has a unique rule in the country

According to the 5th edition of the “X-Ray of the Brazilian Investor”, a survey carried out by Anbima (Brazilian Association of Financial and Capital Market Entities), savings “remains a darling” of Brazilians, with investments by 23% of the population.

Viviane says that savings are still preferred by Brazilians because it has a single rule in the country, regardless of the bank where you applied.

Savings are the same everywhere, no matter which bank you open one in. It is the same because it follows a rule of the Central Bank. In any bank, savings will yield the same thing. This is different from other investments.
Viviane Ferreira, financial planner and investor

When the Selic rate is above 8.5% per year, savings yield 0.5% per month plus TR (Referential Rate), which changes every day. Year to date, savings yields 6.17% per year plus TR.

The TR spent many years at zero, but is currently positive. From June 13 to July 13, the TR will be 0.16%, according to the latest Central Bank bulletin). The TR changes every day. However, if we consider the rate of 0.16% per month, savings have a return of 8.21% in 12 months.

“Selic is 8.5% per year, how much does savings pay? Half a percent a month. Selic went to 12.75% a year, how much does savings pay? Half a percent a month. It doesn’t change. It doesn’t matter wherever the Selic goes above 8.5%”, says Viviane.

Another advantage of savings is having income tax exemption. “Another interesting point of savings is that, in banks, people can have a savings account, without a fee. You don’t need to have a checking account”, he says.

Savings do not protect against inflation

“With the Selic at 13.25% per year, savings yields practically half”, says Viviane.

According to the financial planner, with the IPCA accumulated at almost 12% in the last 12 months and with savings yielding 6.17% per year plus TR, she is far from protecting her money from inflation.

Inflation has risen twice as much as savings. So savings don’t protect our money from inflation, it doesn’t have big returns. It doesn’t have any big advantages in that regard.
Viviane Ferreira, financial planner and investor

Chat with Specialist is fortnightly

The program Chat with Specialist is broadcast on Thursdays, fortnightly, from 3 pm to 4 pm, on the home page of UOL, at UOL Economia and UOL Investimentos, and is exclusive to subscribers. Review past programs here.

You can send questions to Papo by e-mail [email protected] —they can be answered in the program.

Want to invest better? Get tips in your email

Do you want to learn how to make money safely in short, medium and long term investments, even if you’ve never invested?

UOL’s investment page has a free newsletter that helps you in this objective. By subscribing, you receive every day, before the opening of the Stock Exchange, a market analysis made by analyst Rafael Bevilacqua, from Levante Ideias de Investimentos. With this newsletter, you will learn to invest and understand what is happening with the market.

In addition to the daily newsletter, you also receive a weekly analysis of investments, with tips on how to better and safely invest your money. To subscribe to UOL’s free investment newsletter, just click here.

Do you have questions about stocks, funds and other stock exchange investments? Send your question to [email protected]

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

Check Also

Income Tax 2022: see how to consult the refund and payment dates | Income tax

At this stage, they were paid R$ 6.3 billion to 4.25 million taxpayers. Of this …