Savings with real gains

Wellton Maximo
Reporter from Agência Brasil

Brasilia – The increase in the Selic rate (basic interest rate of the economy) to 8,5% per year has benefited savings accounts. Because of the formula in effect since last year, which linked the remuneration of savings accounts to the basic interest rate, the return on the investment rose from 5,6% to more than 6% per year, making savings yield more than the estimated inflation for 2013.

The calculation considers not only the basic interest rate, but also the reference rate (TR), which is applied to returns when the Selic rate exceeds 8% per year. The TR is variable and depends on market expectations, but, according to calculations by the economic team itself, the final return could reach up to 6,17% per year. Without the TR, the final return on savings would be 5,95% per year.

Under the current rule, when the Selic rate is higher than 8,5% per year, savings accounts yield 0,5% per month (6,17% per year) plus the TR (Reference Rate). When the basic interest rate of the economy is equal to or lower than 8,5% per year, savings accounts yield 70% of the Selic rate plus the TR.

The formula only applies to money deposited into savings accounts from May 4, 2012 onwards. For deposits made before that date, the return follows the old rule of 0,5% per month plus the TR (Reference Rate). Other rights of those who invest in savings accounts have been maintained, such as exemption from administration fees and taxes.

According to the Focus bulletin, a survey of financial institutions published weekly by the Central Bank, official inflation as measured by the Broad National Consumer Price Index (IPCA) is expected to close the year at 5,81%. In the Inflation Report, released at the end of June, the Central Bank itself raised its projection for the IPCA in 2013 from 5,7% to 6%. In both cases, savings will yield more than the price index.