Withdrawals from the savings account exceeded deposits by 12.7 billion R$ in July this year, the Central Bank reported Thursday (4). The largest net outflow (the difference between withdrawals and deposits) ever recorded for July was since the start of the historical period, in January 1995.
According to BC, last month’s deposits totaled R$290.4 billion. Total withdrawals amounted to 303.1 billion Brazilian riyals.
Withdrawals are made at a time of high bank interest rates – The oldest in three years The family debt (read more below).
Also according to the British Columbia Federation, in the first seven months of this year, Withdrawals from a traditional savings account exceeded deposits by R$63.2 billion. This is also the highest value in the historical series. This exceeds the previous record, from 2016, when R$43.7 billion was netted out of savings.
The difference between deposit and withdrawal in billion Brazilian riyals
Source: Central Bank
High indebtedness and default
Indebtedness reaches 77% of households in the country, despite a slight decrease in June
According to British Columbia data, household indebtedness to banks, in relation to accumulated income in 12 months, was 52.2% in March of this year (latest available data).
In February 2020, before the COVID-19 pandemic, household indebtedness was 41.7%.
British Columbia’s head of statistics, Fernando Rocha, noted last week that in the quarter to April, total household indebtedness fluctuated “around historical chain highs. [que começa em janeiro de 2005]”.
According to data from Serasa Experian, the country had 66.6 million defaulters in May, the largest number of debtors since 2016, when the survey began. The total debt amounts to R$278.3 billion, with an average of R$4179.50 per debt.
The influx of resources coincides with a decrease in the profitability of savings, which was losing due to inflation. even with Selek rises to 13.75% per year and with Annual inflation is still in the double digitssavings will continue with the return secured at 6.17% p.a. + TR (reference rate).
Simulations from investment researcher Yubb show that many fixed income investments are more attractive, with a net return (deduction for inflation and expected income tax) of more than 7% for 12 months.
Among the modalities with the highest expected return are catalyst bonds, which are bonds issued by companies to finance their projects and operations, LCI (letters of real estate credit) and LCA (letters of credit for agribusinesses). All such applications are exempt from paying income tax (IR).
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