Lodi Valley News.com

Complete News World

How is the income from savings like?

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%. Currently, Selic’s yield is 9.25%, so how is the savings income?

see also: INSS 14th salary still under discussion: see the latest updates

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, a higher 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, how much is the return 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. Thus, 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.

See also  Nubank launches a course in technology and care for black youth

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.