CDBs: how to invest in this fixed income security?

CDBs — or Bank Deposit Certificates — are private fixed income securities suitable for all investor profiles within different diversification strategies. Widely used by those who are more conservative, this is a good opportunity for those who want to make their investment portfolio profitable safely . This financial product offers a certain level of protection and also has the protection of the Credit Guarantee Fund (FGC). Additionally, there are ways to find outhow to choose the best CBD, considering all the characteristics of the paper. To help those who have questions about the topic, we have gathered the main information about the Bank Deposit Certificate in this post. This way, you will be able to make the best investment decision. How about finding out more? summary What is CBD? How does CBD work.

 What are the types of CBDs? What are the advantages, disadvantages and risks of CBD? How to invest in CDBs? Find out how to find the best CBDs What is CBD? Bank Deposit Certificates (CDBs) areprivate securitiesissued by financial institutions to raise funds . They are fixed income assets and allow the investor to "lend" money to the bank to grant lines of credit, execute projects and pay off debts. In return, you receive pre-, post-fixed or hybrid remuneration. Both individuals and legal cell phone number list entities can purchase a CDB. This is a very traditional investment in the market and has a good number of investors. Along with other private securities (such asReal Estate Credit Lettersand Agribusiness), this financial product is known by 9% of the general population . The data is fromInvestor X-Ray, 2023 survey by the Brazilian Association of Financial and Capital Market Entities (Anbima). Furthermore, 4% of Brazilians invest in this modality. The percentage may seem low, but it generated an increase of two percentage points from 2021 to 2022. Much of this result is the result of the profitability potential of CDBs.



To give you an idea, in 2022, the average profitability of this private security reached 10.35% per year , being above some assets on the stock exchange. Of course, this depends on a specific situation. Several aspects led to this good performance. Still, a Bank Deposit Certificate is a valid alternative to understand, in practice, the importance ofinvestment diversification. After all, it helps to have a good overall portfolio return, while reducing the risk taken. How does CBD work? The CDB works in a similar way to a loan granted to a financial institution with the counterpart of a return plus interest within the agreed period. The return is defined by the profitability rate previously defined at the time of acquiring the security. Thus, you receive the principal capital plus interest within a pre-established period. If you make the redemption ahead of time, you will receive a proportional payment.