How much does R$10,000 yield in CDB, Tesouro Direto, LCA and savings with Selic at 10.50%?

After months of predictable meetings, the Central Bank’s Monetary Policy Committee (Copom) decided this Wednesday (8) to take its foot off the accelerator in the Selic cut cycle, opting to apply a 0.25 percentage point reduction. As a result, Selic falls from 10.75% to 10.50% per year.

The measure, which comes after hot inflation data in the United States and concerns surrounding the Brazilian fiscal side, once again dampens the price of credit for those who need loans, while at the same time reducing the profitability of investments.

With the new cut, how much will the fixed income investor’s money return? Check out the answer according to calculations prepared by XP’s fixed income analysis team:

Savings in free fall

With Selic at 10.50%, savings are once again at the end of the line when compared to fixed income investments. With this rate, an investment of R$10,000 in the savings account would turn into R$10,638 a year later, practically the same as before the new interest rate cut. In two years, it would reach R$11,318, compared to R$11,980 with the old Selic. Today, a five-year savings would turn R$10,000 into R$13,559.

Currently, savings pay 0.5% per month – or 6.17% per year – plus the variation in the TR (Reference Rate). The calculation method will only change when the Selic falls to less than 8.5% per year, when savings start to yield 70% of the Selic plus TR.

Download a free spreadsheet to calculate your fixed income investments and avoid assets that yield less

Selic Treasury

At Tesouro Direto, an investment of R$10,000 in the Treasury Selic 2029 would reach R$10,856 after one year of application, already discounting fees and taxes, a value slightly lower than the R$10,881 possible before the new cut in the Selic. In two years, the amount would reach R$11,873 and, in three years, 12,898. In five, battery R$ 15,412.

LCI and LCA

Available with longer terms since government restrictions, real estate credit (LCI) and agribusiness (LCA) letters, which are exempt from Income Tax like savings, transform R$10,000 into R$10,935 in one year , R$ 11,968 in two, and R$ 13,023 in three years of application. In five, it would reach R$15,564.

The calculation considers profitability for LCI and LCA of 90% of the CDI.

CBD

With Selic at 10.50%, CDBs, which have regained their appeal to investors in recent months, can transform R$10,000 into R$10,944 after one year of application, a value that would reach R$12,067 in two years and, in three, it would reach R$ 13,206 after deducting Income Tax. In five, the amount would reach R$16,027, making banking assets the most profitable in this comparison.

The calculation considers profitability for CDB of 110% of the CDI, net of income tax.

What to take into account before investing

Fixed income assets like these can be found on investment platforms, but it is important to take into account factors such as:

• Liquidity: not daily for CDBs, LCIs and LCAs

• Profitability: in general, the higher the rates, the greater the credit risks of issuing institutions

• Coverage by FGC: investments in CDB, LCI, LCA and savings are covered by the Credit Guarantee Fund (FGC), a type of “insurance” that returns up to R$250,000 to the investor in the event of problems with the issuer, such as an intervention by the Central Bank . Public bonds do not have this protection, but are considered “risk-free” because they are issued by the federal government.