We are experiencing a very peculiar moment in our history, where many people say that the Brazilian economic scenario is unfavorable to investments, which is not true. In this period of recession in the economy and high interest, people who have been able to save money can invest and accumulate significant gains with bank investments.
Saving values can be compared to the interest we keep track of in the news to simplify understanding while they are up, it means savings income will also be. SELIC discounting taxes and fees. SELIC discounting taxes and fees. This is because interest and savings tend to yield approximately the monthly value of monthly SELIC discounting taxes and fees.
How is savings income calculated?
Currently, income is 0.6% plus a government-defined amount, which we refer to as the Referential Rate (TR). Normally TR does not interfere with savings profits because it is small. So our biggest focus should be on living income which stands now at 0.6% per month.
Important Tip: To know the income of savings and the current TR or other dates, the Central Bank makes available on its website the citizen’s calculator with all these values.
So to calculate the saving income value keep in mind that it will be a simple equation: TR + 0.6%. We did a simulation of $ 1,000 applied on September 24, 2015, where exactly 30 days later we would have the total of $ 1,006.88. At first glance it seems little, but the final value will always depend on 2 factors: amount deposited in the savings and for how long you will leave the amount applied.
How to improve income income?
Like all forms of investment, they can also increase incomes by following some basic tips. To facilitate understanding, we list below all the factors that positively or negatively impact the profitability of your money in savings.
Check out our list of top tips for getting the most from your savings!
1. Save money often on savings
It is the investor’s profile to reserve a portion of the revenue to save, but it is not hard to strengthen that saving money when possible should be a habit, especially when we talk about the savings in which the yields will depend on the amount deposited in the account
2. Concentrate deposits on the same date
One of the basic principles of saving is that income calculations happen 30 days after the first deposit. If you withdraw the money before this date you will not receive the proceeds. We recommend that you choose a day in the month to make the deposits and always follow this date, so when you need to withdraw, you will know that this can only be done the day after the date you are used to depositing.
3. Reduce expenses and accounts to apply more on savings
We have two types of expenses: fixed and variable, fixed costs are tied to a value combined with the company we hire to provide certain type of service, such as cable TV, monthly employees or the internet. In the case of variable accounts, they are linked to the monthly consumption of gas, water or telephone, for example. Take advantage of your interest in saving these expenses and identify where you can reduce costs.
4. Choose more than one investment option
In addition to saving, choose other investment options, such as fixed income, which maintains the same characteristics of saving, the fact that it is a low risk investment and guaranteed solidity. Among examples of fixed income, we can highlight: Treasury bonds and DI funds, both with high profitability.
5. Invest without term to redeem your money
Regardless of your investment option the savings or the fixed income options have the same feature, the longer the money gets invested the greater the income. Savings are the only tax-exempt application, but when compared to fixed income products, even with the maximum discount of 22.5% IR, they are interesting and with a higher rate of return.
Who has the best income: savings or fixed income products?
Even if savings are exempt from taxation, the profitability of fixed income products are better, even in cases of up to 6 months of investments only, where it inflicts the maximum discount of the maximum rate that is 22.5% of the IR; from 6 months to 1 year falls to 20%; 1 year to 2 years, 17.5%; and above 2 years, 15%.
In other words, the longer the money gets applied the higher the rate of return and the lower the tax will be on the amount invested. And even, saving as a tax-free investment, when we compare the return and taxes, fixed income products are interesting options to earn your money.
How do fixed income products work?
The focus of this article is to highlight the advantages of savings accounts and how to optimize incomes, but we can not fail to show that fixed income products are more profitable and safer than savings. That’s why we recommend you diversify your investments, apply part of your money in savings for ease of use, tax exemption and the other party can be one of the products listed below:
Direct Treasury: If you withdraw part of your savings investments and apply in federal government securities you can improve your income up to 83%. The purchase of securities is done over the internet and requires a stock brokerage.
DI funds: In the same example above, if you apply part of the savings in these funds your profitability will be between 42% and 91%. These securities have their daily updated value based on the trading price in the market.