What is CBD? Everything you wanted to know!

Learn everything you need to know about what a CDB is and how to start investing to start your financial independence. We have put together a complete guide with everything you wanted to know!

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CDB is currently one of the most sought-after fixed-income investments. In fact, this type of investment is offered by almost all banks. It is also one of the first options for those looking to leave their savings account and invest in something more profitable.

In this article, we will talk about the remuneration, earnings, minimum investment amount, daily liquidity, among other aspects of this type of investment. Here's what you'll see:

  • What is CBD and how does it work?
  • What are the types of CDBs?
  • How does the Bank Deposit Certificate with daily liquidity work?
  • What are the advantages?
  • What are the disadvantages and risks?
  • What is the minimum investment in CDB?
  • What is CDI and what is its relationship with CDB?
  • How to invest in CDB? (Step by Step)
  • What is the best CDB on the market today?
o que é cdb

What is CBD and how does it work?

First of all, the CDB (Bank Deposit Certificate) is a fixed income security issued by banks that is protected by the Credit Guarantee Fund (FGC).

This coverage, in fact, has a limit of R$250,000 for deposits and investments in each institution or financial conglomerate, with a ceiling of R$1 million per CPF or CNPJ renewed every 4 years.

Therefore, when you buy CDB papers, you are making a loan to a banking institution that finances activities related to projects, growth and payment of debts.

Furthermore, The yield of the bond is linked to a rate, and CDBs issued by smaller institutions have higher yields. CDBs with longer maturity terms also offer higher yields.

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What are the types of CBD?

The three types of CDB investments are post-fixed, pre-fixed and hybrid securities. Knowledge of each of these modalities is necessary to analyze the most profitable investment for your application.

Post-fixed CDB

Firstly, this is the most common class of CDB, and has a rate of return related to an economic index. Thus, the issuer of CDB securities pays a percentage of the current reference index, such as 110% of the CDI per year.

The interest paid by the post-fixed CDB is subject to variations in the index until the maturity of the investment – which normally increases when its index increases – when the withdrawal can be made.

Pre-fixed CDB

Then, the pre-fixed CDB title has a fixed profitability rate, such as 5% per year, for example. Thus, the investor can know the exact remuneration he will receive on the CDB maturity date. Market fluctuations do not affect the pre-fixed rate.

Hybrid CDB

The hybrid CDB is the least offered on the market. Its profitability rate is divided into fixed and variable.

In this way, we can have, for example, an investment option with a yield of 2% + IPCA (Broad National Consumer Price Index that measures inflation variation). The final redemption value of your investment is subject to the variation of the IPCA.


How does the Bank Deposit Certificate with daily liquidity work?

The main objective of those who invest in CDB with daily liquidity is to create a emergency reserve or have money available to withdraw when needed.

In fact, this investment is linked to more solid strategies, since its profitability is much higher than savings.

A CDB with daily liquidity is effectively a fixed income investment with daily returns that can be redeemed at any time. Unlike savings accounts, for example, which have a monthly maturity date, a CDB with daily liquidity has a daily maturity date.

However, the return rate is one of the lowest. Even so, the advantage of investing in a CDB with daily liquidity is that you can withdraw it whenever you need to.


What are the advantages?

Let’s now look at the main advantages of investing in CDB.

Profitability

The profitability of the CDB is an aspect that makes it stand out, since today we find investments that exceed the CDI in 100%

Ease

To invest in a CDB, you only need to have an account at a financial institution and access to the internet, because the purchase of the title is online. You only need to choose the CDB title that best suits your needs and buy it.

Diversification

Investing in CDB is highly recommended for diversifying investments because it is a stable investment. It will ensure part of the profitability of your investment portfolio. This way, you can maintain good returns in the face of market fluctuations.

Security

The fourth advantage is that CDB is highly sought after due to the security provided by FGC coverage, which we mentioned at the beginning. With this, If the issuer of your securities goes bankrupt, you are insured and will not lose the amount invested.

Liquidity

With the variety of options available on the market, CDB has become a flexible investment, with a variety of options with shorter liquidity periods.


What are the disadvantages and risk?

The disadvantages of investing in CDB are:

Taxation

Initially, the profitability of a CDB has a discount of 15% to 22.5% of Income Tax on the maturity date of the investment. In this scenario, if you opt for longer term investments, your investment will have a lower incidence of taxes.

However, if you decide to redeem your CDB after only 30 days of investment, your income will still be subject to IOF.

Minimum investment amount

The minimum amount for investment in CDB normally corresponds to R$1,000. Depending on the title of your issuer, this minimum amount may vary, reaching, for example, up to R$10,000.

Rescue

Since a CDB can only be redeemed on its maturity date, if you need to withdraw it early, your final profitability will be compromised.

Therefore, the biggest risk present in investing in CDB is credit risk, since the financial institution issuing your securities may have cash flow problems or even go bankrupt and therefore not pay its investors.

Therefore, it is advisable to research the reputation and solidity of the issuer before purchasing the security.

Credit rating agencies, or ratings, are a good source of information on the solvency capacity of banks and financial institutions.

In short, the rating is a score measured by these agencies that assesses whether or not the institution is a good payer.

The remuneration offered by CDB securities increases according to the credit risk of their issuer. Therefore, a CDB with a promise of relatively high profitability needs to be carefully evaluated before making an investment decision.


What is the minimum investment?

Financial institutions have certain requirements regarding investments in CDBs, including a minimum investment amount. This investment varies according to the level of risk and potential return of the security chosen for investment.

Some CDBs issued directly by large banks have reduced minimum values, such as R$500.00. These securities also have lower profitability, reaching an average of R$801.00 of the CDI, which is not a very attractive return, as it is considered low.

So, it is in brokerages and investment platforms we can find higher-paying alternatives. Since they issue CDBs from institutions of varying sizes and characteristics, in addition to expanding the investor's options.


What is CDI and what is its relationship with CDB?

In short, the term CDI stands for Interbank Deposit Certificate. It refers to private securities used in loans between banks. These securities are issued only between financial institutions in the form of short-term loans.

The Central Bank determines that banks must always close the day with a positive balance in their accounts. Therefore, when the number of withdrawals is greater than the number of deposits, the negative difference is taken as a loan by the CDI.

In these transactions, money is taken to pay the Selic rate and reimbursed to the investor based on the CDI. The objective is not to generate profits or losses on loans between banks.

Including, the CDI is also used as an indexer for the profitability of post-fixed fixed income investments.


How to invest in CDB (Step by Step)

Although it is a well-known investment, it is important to observe certain points when purchasing a CDB and assess whether an investment is good, bad or suitable for your needs and goals. Let's look at these points below.

Search for the best options among banks and brokers

Do some research and check the variety of CDBs on investment platforms and the banks that offer the highest returns on CDB sales.

Choosing a CDB

To choose the CDB in which you will invest, check the remuneration offered on each security, its maturity date, the liquidity and the risk level of the CDB issuer.

Because, through this analysis, you will be able to find the best option according to your goals.

If you have never had to use FGC coverage for your fixed income investments, it may be interesting to invest in a security with a higher credit risk and which normally offers a higher return. Sometimes, a brokerage firm also offers the same CDB with a higher return than another.

Opening your brokerage account

After choosing the right CDB to invest in, you must open an account with a brokerage firm. In this process, you will only need to fill out some information and attach copies of documents such as your ID and CPF.

In addition to analyzing CDBs, it is also interesting to know the brokerage firm through which you will make your investments.  

Pay attention to the FGC limits

As we already know, CDB securities are insured by the FGC for up to R$250,000 per institution. Experts recommend diversification, investing in securities from different issuers.

This way, you can considerably increase the value of your guarantee, which has a global coverage limit of up to R$1 million, renewed every four years since 2017.

Simulate

The final step before purchasing CBD is using the Investment Simulator on the platform, which will show you how much your money can earn in the chosen application.

Transfer your money and start investing

To purchase your CDBs, you simply need to transfer the amount you wish to invest from your checking account to your brokerage account and purchase your securities. This transfer is completed within 24 hours via DOC or TED.

o que é cdb

What is the best CDB on the market today?

The best investments for CDB with daily liquidity for 2021 according to analysts are:

RCI Bank

The best CDB to invest in today is Banco RCI Brasil (CDB 112%). Here, you can make an initial investment of just R$50.00 with no fees. Banco RCI Brasil is a financial institution allied with Renault-Nissan-Mitsubishi, and has the best ratings on the market, according to Moody's.

Sofisa

To invest in CDB Sofisa, which offers a return of 115% CDI, you just need to download the Banco Sofisa app.

Pan Bank

Banco Pan's CDB, which belongs to BTG Pactual, has a return of 102% of the CDI. The minimum investment here is just R$ 100.00.

XP Bank

Banco XP's CDB has a profitability of 121% of the CDI and a minimum investment of R$ 1000.00.


Conclusion

The CDB is a fixed income security that offers very attractive profitability rates and low risk.

Therefore, it is an interesting option for investors with a conservative and moderate profile. These are securities that fit into your pocket more easily and whose investment is recommended for medium and long-term goals, such as purchasing movable and immovable property.

Daily liquidity CDBs are suitable for short-term objectives, such as travel or reserve formation. In other words, this title presents itself as a flexible alternative that can be adapted to different income strategies and investor profiles.

If you liked this article, also see “LCI and LCA: what is it and how does it work? Find out everything!”.

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