Making Your Money Work Harder Beyond Savings Accounts Is Possible
The savings account is probably the most popular investment in Brazil. Easy to open, exempt from Income Tax for individuals and protected by the Credit Guarantee Fund (FGC), it has won over generations of Brazilians as a safe place to keep money. But “safe” and “profitable” are not synonyms — and understanding this difference can change the course of your finances.
The problem with savings accounts is not the risk: it’s the return. Under current rules, when the Selic rate is above 8.5% per year, savings accounts yield 0.5% per month plus the Reference Rate (TR). When the Selic is equal to or below 8.5% per year, it yields 70% of the Selic plus TR. Check the complete rule and current value directly on the Central Bank of Brazil website (bcb.gov.br). In practice, historically savings accounts tend to yield less than other fixed income alternatives available in the market — and in many periods even lose to the official inflation measured by the IPCA.
The good news is that there are accessible options, many of them with protection equivalent to savings accounts, that can offer higher returns for those willing to understand how they work. This article presents an educational overview of these alternatives, with advantages, risks and what to observe before making any decision.
Why Leaving Savings Accounts Can Make Sense
When an investment’s return cannot beat inflation, the money saved loses purchasing power over time. This means you nominally have the same value (or a little more), but can buy fewer things with it.
To compare alternatives fairly, always observe the real return — the one that discounts inflation. An investment that yields 10% per year while inflation is at 6% delivers, in practice, about 4% real gain. One that yields 6% with 6% inflation delivers zero real gain.
Additionally, it’s important to consider taxation and fees involved, as they directly impact the final value you receive. Savings accounts have the advantage of IR exemption, but this doesn’t guarantee they beat the competition after all costs.
Fixed Income: The First Step Beyond Savings
For those taking their first steps outside of savings accounts, fixed income is usually the most natural path. In these investments, the remuneration rules are defined at the time of application — you know whether you’ll earn a prefixed rate, a percentage of the CDI or the variation of an index like the IPCA plus an interest rate.
CDB (Bank Deposit Certificate)
CDB is issued by banks and works as a “loan” you make to the financial institution. In return, it pays you an interest rate. Many CDBs remunerate a percentage of the CDI (Interbank Deposit Certificate), which closely follows the Selic rate. To find out the current CDI value, consult the B3 website (b3.com.br).
- Advantages: FGC protection up to R$ 250,000 per CPF per institution (global limit of R$ 1 million every four years); accessible from low amounts on many platforms; can easily surpass savings accounts with CDBs above 100% of CDI.
- Disadvantages: Income Tax incidence with regressive rate (from 22.5% for redemptions up to 180 days, to 15% for redemptions after 720 days); may have a grace period, meaning you cannot redeem before the deadline without loss.
To learn more, read our article Is CDB Worth It? Understand Before Investing.
LCI and LCA (Real Estate and Agribusiness Credit Letters)
These are securities issued by banks backed, respectively, by real estate and agribusiness credits. The main attraction is the IR exemption for individuals, which gives them an advantage compared to CDBs with the same gross rate.
- Advantages: IR exemption; FGC protection; good alternative for those seeking fair comparison with savings accounts.
- Disadvantages: Minimum grace period required by regulation (check current rules at the Central Bank); gross profitability generally lower than equivalent CDBs, precisely because of the exemption.
Treasury Direct: Lending Money to the Government
The Treasury Direct is the federal government program that allows individuals to buy public securities directly. It is considered one of the safest investments in the country, as the risk is that of the Brazilian government itself — called sovereign risk.
There are three main families of securities:
- Treasury Selic: yields close to the Selic rate; low volatility; recommended for emergency reserves due to daily liquidity.
- Prefixed Treasury: rate defined at time of purchase; interesting when you believe rates will fall, but if you sell before maturity you may have a loss.
- Treasury IPCA+: yields inflation (IPCA) plus a real interest rate; protects purchasing power over time; ideal for long-term objectives.
Check the available rates and securities at tesourodireto.gov.br. Treasury Direct charges a B3 custody fee (check the current percentage on the official website) and has regressive IR like CDBs.
| Security | Index | Market Risk | IR | Liquidity |
|---|---|---|---|---|
| Treasury Selic | Selic | Low | Yes (regressive) | Daily |
| Prefixed Treasury | Fixed rate | Medium/High if selling before | Yes (regressive) | Daily, but with volatility |
| Treasury IPCA+ | IPCA + rate | Medium/High if selling before | Yes (regressive) | Daily, but with volatility |
Investment Funds: Diversification with Professional Management
Investment funds pool resources from various investors to invest in different assets, under the management of a professional authorized by the CVM (Securities and Exchange Commission). There are fixed income, multi-market, stock, currency funds, among others.
- Advantages: Automatic diversification; access to more sophisticated strategies with small amounts; professional management.
- Disadvantages: Charge management fees (and some also performance fees), which reduce net return; do not have FGC protection; have variable risk depending on strategy; require attention to regulations before investing.
Before investing in any fund, verify that it is registered and regulated with CVM (cvm.gov.br) and read the prospectus and essential information sheet.
Stocks and Variable Income: Greater Potential, Greater Risk
Investing in stocks means buying a small stake in companies listed on B3, the Brazilian stock exchange. The return potential is higher than fixed income, but the risk is also significantly higher — stock prices fluctuate daily and you can lose part of the invested capital.
There are also ETFs (index funds), which replicate portfolios like the Ibovespa, and real estate funds (FIIs), which invest in properties or real estate sector securities and distribute monthly income to shareholders — with IR exemption on distributed income for individuals in funds that meet certain regulatory criteria.
- Advantages: Potential for superior long-term profitability; possible sectoral and geographical diversification; FIIs distribute income frequently.
- Disadvantages: High volatility; requires knowledge and emotional tolerance to temporary losses; no FGC protection; income tax on capital gains and on dividends in certain cases.
Variable income is more suitable for long-term objectives and for those who already have a solid emergency reserve established.
How to Build a Basic Strategy
Before choosing any product, some steps are fundamental:
- Pay off expensive debts. Credit card and overdraft interest rates are usually much higher than any investment return. Prioritize eliminating them first. Check tips on conscious credit use in Credit Cards Without Debt: Use Intelligently.
- Build an emergency reserve. The ideal amount is between three and six months of monthly expenses, invested in something with daily liquidity and security — Treasury Selic or CDB with daily liquidity protected by FGC are good references for this function.
- Define your objectives and timeframes. Short term (up to two years), medium (two to five years) and long term (over five years) require different strategies.
- Understand your risk profile. Brokerages and banks offer suitability questionnaires, required by CVM regulation, to help with this assessment.
- Start with accessible amounts. Many platforms allow applications from R$ 30 or R$ 100. Consistency matters more than the initial amount.
- Diversify gradually. Don’t concentrate everything in a single product or institution.
- Review periodically. Economic scenario, rates and your personal goals change — your portfolio should follow.
Conclusion: Taking the Next Step with Awareness
Leaving savings accounts doesn’t mean taking unnecessary risks or giving up security. It mainly means understanding that there are accessible alternatives, many equally safe, that can offer better profitability conditions for your money to work for you over time.
The path begins with knowledge: understanding how each product works, what costs are involved, the real risks and appropriate timeframes. There is no perfect investment for everyone — there is the appropriate investment for your moment, your objective and your profile.
Invest in financial education before investing in any product. This is the lowest-risk return that exists.
> Important note: This article has an exclusively educational and informative character. It does not constitute investment advice, offer to buy or sell any financial asset. Each person has a unique financial situation, risk profile and objectives. For investment decisions, consult a certified professional or investment advisor duly registered with the Securities and Exchange Commission (CVM). All investments involve risks, including the possibility of loss of invested capital.
