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Reduction in the Selic rate directly impacts savings and worries millions of Brazilians.
O The Central Bank issued a worrying statement for those who keep their savings in savings accounts at large banks. With Copom's recent decision on the Selic rate, savings profitability continues to decline, leaving millions of Brazilians on alert about the future of their more traditional investments.
Central Bank statement: drop in Selic and impact on savings
O central bank is the institution responsible for ensuring Brazil's economic stability, and recently brought some unpleasant news for savers. On May 8, 2024, the Monetary Policy Committee (Copom) decided to reduce the Selic rate by 0,25 percentage points, bringing the basic interest rate to 10,50% per year. This decision directly affects the yield on savings accounts, one of the most popular investment options in the country.
A The relationship between the Selic rate and savings is direct: when the Selic rate is above 8,5% per year, savings yield 0,5% per month, added to the Reference Rate (TR), which is currently at 2% over the last 12 months. However, with the reduction of the Selic rate to 10,50%, savings yields remain at unattractive levels. In other words, even those who opt for the safety of savings have seen their returns fall short of expectations.
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Low yield and increasing withdrawals
With this new drop in Selic, Savings accounts have become a less advantageous option, and Brazilians have already started to react. According to data released by the Central Bank, in August 2024, savings accounts registered a net withdrawal of R$398,049 million. This figure follows the trend of July, when withdrawals totaled R$908,622 million. Although deposits in August were significant, reaching R$351,766 billion, withdrawals were even higher, totaling R$352,164 billion.
In 2024, the situation is not the best: Withdrawals exceed contributions by R$4,099 billion, showing that many Brazilians are withdrawing their money from savings accounts in search of more profitable options. In 2023, the scenario was also unfavorable, with a net outflow of R$87,819 billion from savings accounts.
Savings: is it still worth it?
With Selic at 10,50% per year, savings yield remains a concern for those who keep money invested in this modality. To give you an idea of the impact, investing R$5 in savings will yield only R$370,00 at the end of 12 months. In other words, the financial return on savings does not keep up with inflation and other more dynamic types of investments.
In light of this statement from the Central Bank, many experts have recommended that investors reevaluate their strategies. Savings, which for a long time was seen as a safe haven for storing savings, is now struggling to keep up with other investment options that offer better returns. and protection against inflation.
What to expect in the coming months?
O The Central Bank has not ruled out further reductions in the Selic rate, which could further impact savings yields. With the Brazilian economy undergoing adjustments, many Brazilians are rethinking their investment choices. The search for more profitable alternatives, such as Treasury Direct bonds or fixed income funds, has grown, since savings accounts, despite being safe, offer increasingly lower returns.
Faced with an uncertain future, Those who still keep their savings in savings accounts at large banks should be aware of changes in the Selic rate and evaluate other options that can bring greater financial returns, without giving up the security that is so valued by Brazilian investors.
Recent statement from the Central Bank brought to light a difficult reality
O A recent statement from the Central Bank brought to light a difficult reality for Brazilians who still trust their savings to savings accounts. With low incomes and the possibility of further cuts In the Selic rate, it is essential that investors remain alert and consider diversifying their investments. After all, the current economic scenario requires caution, but also a strategic vision to ensure that the money saved continues to grow, even in times of low interest rates.
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Comment here your opinion on the impact of the drop in the Selic rate on savings and what you have done to deal with this situation. Are you going to continue investing in savings or are you already thinking about other options?
