Brazilian government keeps lowering the countries base interest rates index… and this new change to 8.5%, keeps the average income of the savings account at 0.4978% per month, which corresponds to a yield Annual of 5.97%. Applying US$ 10,000 for 12 months, at the end of this period the investor would yield the value of US$ 597, totaling US$ 10,597. Savings account are not one of the best investments but are surely one of the safest ones in the country. And up until R$ 50.000 in savings are not taxable by the government. Fair.
Despite the lowering of interest rates, the government fails to see the real problem: tax, too damn high taxes! The government is raising in october the tax burden for beers and beverages up 27%! Not only the government fails to cut taxes, but keeps beating the industry and the population with even higher tributes.
At least one good news for whoever sends money to Brazil: the dollar close the week at 2.04 against the real… so it’s again a good time to send money to Brazil specially if you keep it in a savings account.
If you are looking to open a savings account in Brazil, know that only permanent residents can do that.