The savings account was the Brazilian standard for many decades. It was considered safe and profitable, being a perfect alternative, especially in a country with currency and unstable economy, in addition to a population with little financially educated. But for a few years now, this scenario has changed and you can see countless reasons to abandon the book – like saving interest.
Nowadays, the situation is different, and there are many better investment options that are catching the attention of those who used to spend their money on savings. Do you want to know the main reasons to abandon your book? Then check out the following post:
That’s the first reason you should keep him away from the book! As we all know, interest from savings is low and it yields little. Currently, we can estimate this figure at about 7% a year, easily surpassed by other types of investment, many with small risks and very similar to those of the savings themselves.
Of course, this is a projection. After all, the percentages may vary according to the period, but the fact is that we can be sure that the other alternatives would bring much better returns.
Savings interest: the danger of inflation
Savings interest does not protect the investor from the risk of inflation, a problem that has scared Brazilians back in recent times. With the increase in the value of services and products, in addition to the low profitability of the book, your money loses buying power and in a short time may not be enough to cover your expenses.
To protect yourself from inflation, you have only one alternative: to find investments with profitability greater than the losses caused by it.
Risk is not zero
Although this is the biggest appeal of those who still choose to invest in savings, the truth is that any other investment, it is not risk free. If the chosen institution for the investment goes through problems or even bankruptcy, you can have serious problems to recover the money applied.
The FGC (Credit Guarantor Fund) protects deposits of up to R $ 250,000 in savings. However, FGC also protects other applications, such as LCI, ACL and CDB. What does this tell us? That the carnet has the same security of these investments, that can yield much more.
We all know that the compensation of the savings is made monthly, that is, the valuation of interest happens only on the anniversary date of the deposit made. The problem is that people think they can take their money any time they want, but that’s only half true.
If you withdraw the amount before the month is completed, all remuneration for the period is lost. There are other applications that make a daily update, which means that your liquidity is higher and you can get the desired value without losing the investments so far.
Diversify is smart
Every investor should know that diversifying their applications is a smart move. And we have excellent alternatives to escape the temptation of low interest savings and achieve great returns.
The Real Estate Credit Letters (LCI) are a good example of this. They are bonds issued by banking institutions with real estate market balances and Income Tax exemption, with excellent profitability in the current days and protection of the Credit Guarantee Fund of up to R $ 250 thousand. The Agribusiness Credit Letters (LCA) are many similar titles, only with the difference of the ballast being in the agribusiness operations.
Another interesting application is the CDB (Bank Deposit Certificates): they are issued by banks to raise funds from investors. This investment is subject to Income Tax, but the profitability, generally post-fixed, is very good and some institutions are protected by the FGC.
Finally, we have the LFT (Treasury Financial Letters), which are bonds issued by the Federal Government, with profitability linked to the Selic rate and acquisition by the Treasury Direct program. The risks are small because the lender is the government itself.