As you explore ways to make your money work for you, you’ll likely come across a variety of investment options. One of the most accessible and popular fixed-income investments in Brazil is the CDB — or Certificado de Depósito Bancário. For beginners, it’s a powerful tool to start building passive income and growing savings.
In this article, you’ll understand what a CDB is, how it works, the risks involved, and why it might be a smart choice for your investment portfolio.
What Is a CDB?
A CDB (Certificate of Bank Deposit) is a financial product offered by banks in Brazil. When you invest in a CDB, you are essentially lending money to the bank, which will use your funds for loans and other operations. In return, the bank pays you interest on the money you invest.
It’s similar to a bond or certificate of deposit (CD) in other countries and is part of the fixed income investment category.
How Does a CDB Work?
When you invest in a CDB, you agree to keep your money invested for a certain period, known as the term or maturity period. In exchange, the bank pays you a pre-agreed return, which could be:
- Fixed: A specific interest rate (e.g., 12% per year)
- Post-fixed: Based on a financial index (e.g., 110% of CDI)
- Hybrid: A mix of fixed and inflation-indexed returns (e.g., IPCA + 6% per year)
At the end of the term, you receive the original amount you invested plus the interest earned.
Types of CDBs
There are three main types of CDBs based on how the return is calculated:
1. Fixed-rate CDB
- Offers a guaranteed interest rate
- Example: 13% per year, regardless of economic changes
- Best when interest rates are expected to fall
2. Post-fixed CDB
- Linked to the CDI (Certificado de Depósito Interbancário), which tracks the Brazilian base interest rate
- Example: 105% of CDI — if CDI is 10%, your return would be 10.5%
- Best during times of rising interest rates
3. Inflation-indexed CDB (Hybrid)
- Combines fixed interest with inflation protection
- Example: IPCA + 5%
- Best for long-term goals when you want to preserve purchasing power
Why Invest in CDBs?
✅ Predictable Returns
Fixed-income investments like CDBs offer a predictable return, especially when compared to stocks or cryptocurrencies. This makes them great for beginners and risk-averse investors.
✅ Protection from FGC
Most CDBs are covered by the Fundo Garantidor de Créditos (FGC) — Brazil’s credit guarantee fund — up to R$250,000 per institution, per CPF, with a limit of R$1,000,000 every four years. This adds a layer of security if the bank issuing the CDB goes bankrupt.
✅ Wide Range of Options
You can find CDBs with different terms (from 30 days to 5+ years), rates, and liquidity. Some are daily liquid, meaning you can redeem your money at any time (usually with a lower return).
✅ Better Returns Than Savings Accounts
Many CDBs offer much higher returns than the traditional poupança (savings account), especially in high-interest environments.
What Are the Risks?
While CDBs are generally safe, they do come with some risks:
❌ Credit Risk
If you choose a CDB from a small or unstable bank, there is a chance the bank could default. However, this is mitigated by the FGC coverage.
❌ Liquidity Risk
Some CDBs do not allow early withdrawal. If you need the money before maturity, you might not be able to access it or will have to accept a penalty.
❌ Taxation
Earnings from CDBs are subject to income tax under a regressive table:
| Investment Period | Income Tax Rate |
|---|---|
| Up to 180 days | 22.5% |
| 181 to 360 days | 20% |
| 361 to 720 days | 17.5% |
| More than 720 days | 15% |
Taxes are automatically deducted upon redemption.
How to Invest in a CDB
Investing in a CDB is simple and can be done through:
- Digital banks
- Traditional banks
- Investment platforms and brokers
Before choosing a CDB, compare:
- The bank’s reliability
- The interest rate offered
- The term and liquidity
- FGC coverage
- Tax implications
Who Should Invest in a CDB?
CDBs are ideal for:
- People seeking low-risk returns
- Beginners wanting to avoid market volatility
- Those building an emergency fund (with daily liquidity CDBs)
- Medium to long-term savers
CDB vs. Other Investments
| Feature | CDB | Savings Account | Treasury Direct (Tesouro Direto) |
|---|---|---|---|
| Safety | High (with FGC) | High (with FGC) | Very high (backed by the government) |
| Returns | Medium to high | Low | Medium |
| Liquidity | Varies | High | Medium |
| Minimum Investment | From R$100 | From R$0 | From R$30 |
Final Thoughts: Is a CDB Right for You?
CDBs are one of the best entry points for beginner investors in Brazil. They’re safe, versatile, and generally more profitable than savings accounts. By understanding how they work and choosing the right one based on your needs, you can grow your money steadily and securely.
Always compare options and consider the term, interest rate, and liquidity before committing. As with any investment, knowledge is the best protection for your money.