Savings vs CDB: Which Yields More in 12 Months?

Understanding Savings and CDB

When it comes to saving money and making it grow, many Brazilians find themselves torn between savings and CDB (Certificate of Bank Deposit). Both are popular options, but it's important to understand how each one works and which can provide a better return on your investments.

The savings account is a traditional financial investment, exempt from Income Tax, but its yield is tied to the Selic rate, which can raise questions about its efficiency compared to other investment options.

On the other hand, the CDB is an alternative that can offer higher yields, especially when it comes to CDBs that pay 100% of the CDI. Let's explore this in detail and compare the yields with real values.

Comparing Yields

To better understand the difference, let's use a practical example. Suppose you decide to invest R$ 10,000.00 (~$2,000) in both options for 12 months.

Savings: What to Expect?

The yield from savings is 70% of the Selic + TR. Assuming the Selic is at 12.75% per year, the yield from savings would be around:

• 70% of 12.75% = 8.925% per year

Now, let's calculate the yield over 12 months:

• Yield = R$ 10,000.00 * 8.925% = R$ 892.50 (~$178)

Therefore, at the end of 12 months, you would have:

• R$ 10,000.00 + R$ 892.50 = R$ 10,892.50 (~$2,178)

CDB 100% CDI: Is It Worth It?

Now, let's consider a CDB that yields 100% of the CDI. With the CDI rate currently around 13.15% per year, the yield would be:

• Yield = R$ 10,000.00 * 13.15% = R$ 1,315.00 (~$263)

With this, at the end of 12 months, you would have:

• R$ 10,000.00 + R$ 1,315.00 = R$ 11,315.00 (~$2,263)

Summary of Results

Now that we have the numbers, let's summarize:

• Savings: R$ 10,892.50 (~$2,178) at the end of 12 months
• CDB 100% CDI: R$ 11,315.00 (~$2,263) at the end of 12 months

The difference between the two investments is clear: the CDB 100% CDI yielded R$ 422.50 (~$84) more than the savings account.

Practical Tips for Investing

1. Assess Your Investor Profile

Before deciding between savings and CDB, consider your profile. If you prefer safety and liquidity, savings may be a good choice. But if you're willing to take a bit more risk for a higher return, the CDB is more advantageous.

2. Research the Rates

Not all CDBs yield the same. Always check the rates offered by different financial institutions and look for those that offer 100% of the CDI or more.

3. Consider the Investment Term

If you don't need the money for a while, consider CDBs with longer terms, which usually offer better yields. However, keep in mind that withdrawing money before maturity may incur penalties.

4. Be Aware of Income Tax

While savings are exempt from Income Tax, CDB yields are taxed. The tax varies by term: 22.5% for investments up to 180 days and 15% for those over 720 days. Consider this when calculating your profits.

Conclusion

In summary, when comparing savings with a CDB 100% CDI, it is evident that the CDB offers a much more attractive yield. With an investment of R$ 10,000.00 (~$2,000), you could see a difference of up to R$ 422.50 (~$84) at the end of a year. Assess your profile and needs before deciding where to invest.

Now it's your turn! Start planning your investment and choose the option that best suits you. And remember: organizing your finances is the first step to achieving your financial goals!