When it comes to investing money, there are many options available, each with different risks, returns, and characteristics. Four of the most common choices are Savings Accounts, CDB (Bank Certificates of Deposit), Tesouro Direto (Government Bonds), and Stocks. Understanding their differences can help you make the best decision based on your financial goals.
In this guide, we’ll compare these investment options and explain their pros and cons.
1. What Is a Savings Account (Poupança)?
A savings account is one of the most popular and traditional ways to store money in Brazil. It offers low risk, but also low returns compared to other investment options.
✅ Pros:
✔️ Security – Guaranteed by the Credit Guarantee Fund (FGC) up to R$250,000 per institution.
✔️ Liquidity – You can withdraw money at any time.
✔️ No Income Tax – Earnings are tax-free.
❌ Cons:
❌ Low Returns – The interest rate depends on the Selic rate and is usually lower than inflation.
❌ Fixed Monthly Payment – The interest is credited only on the anniversary date, meaning early withdrawals lose that month’s earnings.
❌ Loses to Inflation – Over time, money in savings may lose purchasing power.
Best for: Those who want an emergency fund or a very safe place to store money with easy access.
2. What Is a CDB (Bank Certificate of Deposit)?
A CDB (Certificado de Depósito Bancário) is a fixed-income investment where you lend money to a bank in exchange for interest. The bank uses this money for loans and other operations and returns it with a pre-agreed profit.
Types of CDBs:
- Pre-Fixed: Pays a fixed interest rate, such as 10% per year.
- Post-Fixed: Follows an index, usually 100% of the CDI (Interbank Deposit Rate).
- Hybrid: Pays a fixed rate + inflation (e.g., 5% + IPCA).
✅ Pros:
✔️ Higher Returns than Savings – Many CDBs offer 100% to 120% of the CDI, which is much better than the savings account.
✔️ Security – Protected by the FGC (up to R$250,000 per bank).
✔️ Different Term Options – Can be short-term or long-term investments.
❌ Cons:
❌ Income Tax Applies – The longer you hold the investment, the lower the tax:
- 22.5% (up to 180 days)
- 20% (181 to 360 days)
- 17.5% (361 to 720 days)
- 15% (above 720 days)
❌ May Have Low Liquidity – Some CDBs require you to wait until maturity to withdraw your money.
Best for: Those looking for higher returns than savings, but still want low risk and guaranteed earnings.
3. What Is Tesouro Direto (Government Bonds)?
Tesouro Direto is a program where individuals can invest in Brazilian government bonds, meaning they lend money to the government in exchange for interest.
Types of Tesouro Direto Bonds:
- Tesouro Selic: Follows the Selic rate (best for emergency funds).
- Tesouro Prefixado: Has a fixed return rate (ideal when interest rates are expected to drop).
- Tesouro IPCA+: Pays inflation + a fixed rate, protecting purchasing power.
✅ Pros:
✔️ Safer than CDBs – Backed by the Brazilian government.
✔️ Low Initial Investment – You can start with R$30.
✔️ Higher Returns than Savings – Especially Tesouro IPCA+, which beats inflation.
✔️ Liquidity – Can be sold before maturity.
❌ Cons:
❌ Fluctuation Risks – If sold before maturity, prices can rise or fall based on market conditions.
❌ Income Tax Applies – Same tax rule as CDBs (from 22.5% to 15%).
❌ 0.20% Custody Fee – Charged by B3 (Brazil’s stock exchange).
Best for: Those looking for a safe and predictable investment with higher returns than savings or CDBs.
4. What Are Stocks (Ações)?
Stocks represent ownership in a company. When you buy stocks, you become a shareholder and benefit from the company’s growth through price appreciation and dividends.
✅ Pros:
✔️ High Earning Potential – Some stocks can grow 100% or more in value over time.
✔️ Dividends – Many companies pay regular dividends (profit-sharing).
✔️ Liquidity – Stocks can be bought and sold easily on the stock exchange.
✔️ Ownership in Companies – You invest in successful businesses.
❌ Cons:
❌ High Risk – Stock prices fluctuate daily based on market conditions.
❌ No Guarantees – Unlike savings, CDB, or Tesouro Direto, stocks can lose value.
❌ Requires Market Knowledge – Choosing the right stocks requires research and analysis.
Best for: Those willing to take risks in exchange for high returns over the long term.
5. Comparison Table: Savings vs. CDB vs. Tesouro Direto vs. Stocks
| Feature | Savings | CDB | Tesouro Direto | Stocks |
| Risk Level | Very Low | Low | Low to Medium | High |
| Return Rate | Very Low | Medium | Medium to High | Very High |
| Liquidity | High | Varies | High (but price may fluctuate) | High |
| Income Tax? | ❌ No | ✅ Yes | ✅ Yes | ✅ Yes (on profits) |
| FGC Guarantee? | ✅ Yes | ✅ Yes | ❌ No (but backed by government) | ❌ No |
| Best for | Safe storage | Fixed-income gains | Inflation protection | High-risk growth |
Final Thoughts: Which One Should You Choose?
Each investment option serves a different purpose.
Choose a Savings Account if: You need quick access to your money for emergencies.
Choose CDB if: You want higher returns than savings, with low risk and FGC protection.
Choose Tesouro Direto if: You want a safe, long-term investment with inflation protection.
Choose Stocks if: You are looking for high returns over time and can handle market risks.
Balanced Investment Strategy
For a well-diversified portfolio, consider combining different investment types:
✔️ Emergency Fund: Savings or Tesouro Selic.
✔️ Low-Risk Investment: CDB or Tesouro Direto.
✔️ Growth Investment: Stocks or REITs (Real Estate Investment Funds).
The best investment depends on your goals, risk tolerance, and time horizon. No matter which one you choose, the most important step is to start investing today!