How much does R$ 70 thousand yield in savings today?

Find out how much R$ 70 thousand yields in savings and how the yield is calculated

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After all, how much does R$ 70 thousand yield in savings?

When it comes to investments, savings accounts are not the best option. However, due to the security and practicality they offer, savings accounts continue to be a high investment volume in Brazil.

In today’s article, we’ll explain in more detail how income is calculated in this type of bank account. Keep reading to find out more.

How is savings income calculated?

Before knowing how much R$ 70 thousand yields in savings, it is important to know how the yield on this application is calculated.

Savings interest is related to two rates: Selic rate, which is the basic interest rate of the Brazilian economy, and the reference rate (TR).

Since 2012, the yield of this bank account has undergone a change. Currently, the calculation works as follows:

• When the Selic rate is below 8.5% per year, savings yield 70% of the value of the basic interest rate (Selic) plus the reference rate (TR)

• When the Selic rate is above 8.5% per year, the yield is 0.5% per month + the reference rate (TR)

Currently, the Selic rate is at 13.25% per year. Therefore, the savings yield today is 0.5% per month plus the Reference Rate (TR).

In other words, the yield is equivalent to 6.17% per year.

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How much does R$ 70 thousand yield in savings?

Now that you know how savings income works, it's time to find out how much R$ 70 thousand yields per month.

To do this, we have to consider that the Selic rate is higher than 8.5% per year and the reference rate is 0.17%.

According to the calculator Finance One, by applying R$ 70 thousand in savings, after 12 months, you will have a total of R$ 74,443.26. This means that the return during this time was R$ 4,443.26 (considering a profitability of 6.17% per year).

Now, if you leave R$ 70 thousand invested for just one month, you will have R$ 70,350.00. Therefore, the monthly income in this case was R$ 350.

How does inflation affect savings profitability?

As you can see, savings do offer profitability.

So obviously it's better leave your money in savings than “under the mattress”. However, when it comes to investment, there are options that are just as safe as savings, which offer a much more interesting return.

Furthermore, savings have been losing out to inflation for several months in a row.

In other words, by leaving your money in savings, you are losing your purchasing power, especially in the medium and long term.

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Is it worth leaving money in savings?

Ease and convenience are some of the main reasons why Brazilians still keep money in savings accounts.

Savings is a safe fixed income investment, however, its returns may be below inflation.

In fact, in October 2021 savings reached the worst profitability in 30 years, according to a survey carried out by the financial information company Economatica.

We are living in a scenario of high inflation, which causes the cost of living to increase further.

For this reason, it is very important to study other investment possibilities, to know your investor profile and set financial goals. 

This way, you will be able to better understand other types of financial investments, which in addition to being safe, offer a better return than savings.

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Digital accounts that yield more than savings accounts

There are completely free digital accounts that offer a better return than savings accounts.

Check out some of these options below:

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Picpay

Picpay is one of the largest payment apps in Brazil.

By creating an account on Picpay, you can make purchases at establishments, pay bills, transfer money to your friends and much more.

Furthermore, when leaving money on Picpay, you can count on a more attractive return than savings.

Currently, your Picpay balance yields up to 102% of the CDI every business day. To obtain this yield, you need to have at least R$ 1 in your wallet.

For amounts above R$ 100 thousand, the balance yields 100% of the CDI.

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Nubank

Recently, Nubank announced that the way money earns in the digital bank will change.

This did not please many customers.

The value of new deposits will continue to yield 100% of the CDI, however, only after 30 days of the amount entering your digital account.

But this change came with a new feature: the “little boxes”, a new income system, which allows customers to save money in an organized way, setting goals.

Like this?

Well, in this new tool, the system will allow personalized applications, with different objectives, such as emergency reserves, courses, trips, among others.

It is you who will define the objective, according to your goals.

Inside these little boxes, the money can yield 100% of the CDI or even more, depending on the option chosen.

The boxes work as follows:

• You can create a box called “travel”, and, every month, set aside an amount for this goal.

• At the same time, you create another little box called “emergency fund” to save that money and only touch that little box when an unexpected financial situation arises.

For now, there are two types of investments available in the boxes.

One of them is Nubank's RDB, with a yield of 100% of the CDI and protection of the Credit Guarantee Fund (FGC) and immediate liquidity, which means you can withdraw the money whenever you want.

The other is Nu Reserva Imediata, a fund with potential returns above the 100% of the CDI, over time, with the option to withdraw on any business day.

Conclusion

Now you know how much R$ 70 thousand yields in savings and how the yield of this type of bank account is calculated.

Although savings are safe and practical, it is important to remember that when it comes to medium and long-term investments, there are more advantageous options, such as other digital accounts or fixed income investments, for example.