CDI Linked Investments: Who Qualifies and What You Get
Learn how to earn interest on security deposits held in savings accounts or similar banking products in Brazil.
CDI Linked Investments allow you to earn interest on money that is being held as a security deposit within a bank account.
Who it's for
This scheme is available to anyone who holds savings. If you have money sitting in a bank account, you may be eligible to participate in these types of linked investments. It is a common way for individuals or those managing funds to ensure that stagnant capital still generates value through interest.
What you get
The primary benefit is the interest earned on the security deposits being held. In Brazil, this interest is referred to as Rendimento. Instead of the money sitting idle, the bank applies a rate that allows the deposit to grow over time. This ensures that the value of the held security is being utilized through the banking system rather than remaining completely static.
What it costs you
While there is no upfront fee mentioned to access these earnings, you must account for the cost of income tax. Any earnings generated from the interest on these deposits are subject to taxation. You will need to factor this tax obligation into your overall financial planning when calculating how much actual profit you are making from the interest.
The catch to know
The most important detail to understand is how the money must be stored to qualify. The security deposits cannot be held in a standard checking account or a non-interest-bearing account. They must be held specifically in a savings account, known locally as a Poupança, or a similar banking product that is designed to accumulate interest. If the funds are not placed in one of these specific types of accounts, you will not receive the Rendimento.
How to apply
- Identify the funds that are being held as security deposits.
- Ensure these funds are placed into a Poupança or a similar savings account at a bank.
- Confirm with your banking institution that the account is set up to earn interest on those specific deposits.
- Monitor your account to track the Rendimento earned over time.