For many beginners looking to grow their money safely, fixed-income investments are a great starting point. In Brazil, three of the most popular and accessible types are CDBs (Certificates of Bank Deposit), LCIs (Real Estate Credit Bills), and LCAs (Agribusiness Credit Bills).
Though they may sound complicated, these investments are actually simple to understand—and can play a key role in building a secure and diversified portfolio.
In this article, we’ll break down what CDBs, LCIs, and LCAs are, how they work, and how to choose the right one for your financial goals.
What Is a CDB?
CDB stands for Certificado de Depósito Bancário (Certificate of Bank Deposit). It’s a type of loan you make to a bank. In return, the bank pays you interest over time.
How It Works:
- You lend money to a bank for a fixed period.
- The bank uses your money for its operations or to finance other loans.
- At the end of the term (or periodically), the bank pays you interest.
Types of CDBs:
- Pre-fixed: You know the exact interest rate you’ll receive.
- Post-fixed: Interest is based on a benchmark, usually CDI (Interbank Deposit Certificate rate).
- Hybrid: A mix of fixed and variable, such as inflation + a fixed percentage.
Key Advantages:
- Usually offers higher returns than savings accounts.
- Protected by FGC (Fundo Garantidor de Créditos) up to R$250,000 per CPF per institution.
- Available from many brokers and banks.
What Is an LCI?
LCI stands for Letra de Crédito Imobiliário (Real Estate Credit Bill). It’s also a type of fixed-income investment, but the money you invest goes specifically to real estate lending.
How It Works:
- You invest your money in a bank-issued credit bill.
- The bank uses the funds to finance mortgages or other real estate loans.
- At maturity, you receive your original investment plus interest.
Key Advantages:
- Income tax exempt for individuals (big benefit!).
- Protected by the FGC like CDBs.
- Great for medium to long-term goals.
Considerations:
- May have minimum investment values.
- Usually requires you to keep the money locked in until maturity (no liquidity).
What Is an LCA?
LCA stands for Letra de Crédito do Agronegócio (Agribusiness Credit Bill). It’s almost identical to LCI, but your money is directed toward agricultural financing.
How It Works:
- You lend money to banks, which fund agribusiness loans.
- You earn interest and get your capital back at the end of the term.
Key Advantages:
- Also tax-exempt for individuals.
- FGC protection applies.
- Encourages support of Brazil’s agribusiness sector.
Main Differences Between CDB, LCI, and LCA
| Feature | CDB | LCI | LCA |
|---|---|---|---|
| Tax exemption | ❌ No (subject to IR) | ✅ Yes | ✅ Yes |
| Where funds go | Bank operations | Real estate loans | Agribusiness loans |
| Liquidity | Some options have daily liquidity | Usually locked until maturity | Usually locked until maturity |
| FGC protection | ✅ Yes | ✅ Yes | ✅ Yes |
| Common returns | 100%–120% of CDI | 90%–100% of CDI (but tax-free) | 90%–100% of CDI (but tax-free) |
When Should You Use Each?
- Use CDBs when you want flexible options and potentially higher returns (some even allow daily redemption).
- Use LCIs and LCAs when you are looking for tax-free growth and can leave the money untouched for a while.
Pro tip: Tax-free doesn’t always mean better. Compare the net return after taxes when evaluating options.
How to Invest in CDBs, LCIs, and LCAs
Step-by-Step:
- Open an account with a brokerage or digital bank that offers fixed-income products.
- Compare offers on the platform — look at:
- Yield (pre/post-fixed)
- Term (liquidity and duration)
- Minimum investment
- FGC coverage
- Transfer your money and invest through the platform.
- Track your investment and let it mature.
These products are widely available on platforms like XP Investimentos, Rico, Nubank, Inter, BTG Pactual, and others.
Are These Investments Safe?
Yes — especially when:
- Covered by the FGC
- From reputable financial institutions
- Held until maturity
While nothing is risk-free, CDBs, LCIs, and LCAs are generally considered low-risk and are a great starting point for beginners.
Final Thoughts: Easy Access to Safe Growth
If you’re new to investing and want a safe, low-barrier way to start earning more than your savings account offers, CDBs, LCIs, and LCAs are strong candidates. Each one has unique benefits, and understanding how they differ will help you choose the right option for your financial goals.
Start small, compare carefully, and don’t underestimate the power of compound interest—even on fixed-income investments.