What's the interest rate in Brazilian Banks?

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british_saver

New Member
Dear forum,

I spent the last 2 hours trying to navigate from a bank to bank, HSBC, Banco Do Brasil, Unibank, Santander, using Google Translate and trying to find how much the banks there will offer me on savings accounts, as the interest rate in Brazil is very high (currently 10.75% and on this coming Wednesday expected to go even higher to 11% or 11.25%).

I couldn't find any information, perhaps because I don't speak Portuguese very well but my question is how much interest rate can you get on deposits of around 2 million real?

Can you get around 15%?

Here in the UK we get peanuts for our savings and I'm fed up with the UK banks, I'm looking for a higher return and wouldn't mind to convert £ to BRL if that's necessary.

Please help.
 
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timatthebeach

New Member
Dear forum,

I spent the last 2 hours trying to navigate from a bank to bank, HSBC, Banco Do Brasil, Unibank, Santander, using Google Translate and trying to find how much the banks there will offer me on savings accounts, as the interest rate in Brazil is very high (currently 10.75% and on this coming Wednesday expected to go even higher to 11% or 11.25%).

I couldn't find any information, perhaps because I don't speak Portuguese very well but my question is how much interest rate can you get on deposits of around 2 million real?

Can you get around 15%?

Here in the UK we get peanuts for our savings and I'm fed up with the UK banks, I'm looking for a higher return and wouldn't mind to convert £ to BRL if that's necessary.

Please help.
I think you would have no prblem getting up to around 12% but unless you have brazilian residency you will find it almost impossible to open an account.
 
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british_saver

New Member
I think you would have no prblem getting up to around 12% but unless you have brazilian residency you will find it almost impossible to open an account.
I am willing to immigrate to Brazil as an investor so that's not a problem. Is the figure 12% accurate? This sounds really attractive so I just want to make sure 12% is possible. Likewise, what's the tax on the savings rate, any idea?
 
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timatthebeach

New Member
I am willing to immigrate to Brazil as an investor so that's not a problem. Is the figure 12% accurate? This sounds really attractive so I just want to make sure 12% is possible. Likewise, what's the tax on the savings rate, any idea?
well i had a friend who had a business account there and end of 2009 start of 2010 he got 10% on an instant access savings acc and was told he could get 11% on a bond type savings. no idea on the tax issue on savings whether its taken directly by the bank or down to you to declare on tax returns, or whether it is part of income tax or some other band of tax
if youre considering starting a business there your accountant should be able to give you this info in much better (and more definite) detail.
 
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british_saver

New Member
well i had a friend who had a business account there and end of 2009 start of 2010 he got 10% on an instant access savings acc and was told he could get 11% on a bond type savings. no idea on the tax issue on savings whether its taken directly by the bank or down to you to declare on tax returns, or whether it is part of income tax or some other band of tax
if youre considering starting a business there your accountant should be able to give you this info in much better (and more definite) detail.
Thanks for the info!
 
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JMBroad

New Member
It's about that but then again depends on the bank you use and the type of savings account. Last year (2009 not 2010) a friend of mine made around 25% interest on his savings account.
 
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british_saver

New Member
It's about that but then again depends on the bank you use and the type of savings account. Last year (2009 not 2010) a friend of mine made around 25% interest on his savings account.
25% in a year?! :eek:
No way.
Is that for real? (double meaning)
 
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JMBroad

New Member
Yes - he had a fixed savings income of 12% per year I believe and then 15% of the total amount was put in medium to high risk investment portfolio by the bank - worst case would have been if he'd lost the whole 15% which was being invested (still would have had the principal and the 12%) but as it happens, he ended up receiving 25% of the total so as you can imagine he was pretty happy about it.

Depending on how much is being invested there are numerous opportunities available.
 
debzor

debzor

New Member
It might be worth mentioning you will not get (or rather, be able to keep) an investors visa just for depositing funds into a bank account.

At least R$150,000 would need to be invested into an active, hands-on business, that creates directly Brazilian employment, payment of taxes, etc.

You may already be aware of this, so my apolgies if you are, however it is worthy of clarification at an early stage.
 
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DGM42

New Member
I just spoke with my wife who is in Brazil at the moment and she told me the bank savings rate is 0.6% per month. That doesn't work out at 12% per year
How do you get these 12% rates
 
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JMBroad

New Member
I just spoke with my wife who is in Brazil at the moment and she told me the bank savings rate is 0.6% per month. That doesn't work out at 12% per year
How do you get these 12% rates
The same as any banking system in any country in the world, it depends which bank you talk to, how long you are putting the money in the bank for and most importantly how much money you are putting with them.
 
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malacaxeta

New Member
The same as any banking system in any country in the world, it depends which bank you talk to, how long you are putting the money in the bank for and most importantly how much money you are putting with them.

[newbie post #1:]

worth taking into account also:

1) hard to predict where this rate is going because its 11.25pc now and was 8.75pc less than a year ago.....if anyone here is able to correlate the increases in inflation that have prompted the various rises in 2010-11 i'd be interested to hear !

2) what you get from a local bank IS negotiable, if you have a personal account manager and have a reasonable amount to invest (eg R$250K or more) - at that level you should be able to get 102 per cent of CDI rate. You also have to be wary that additional (smaller) deposits are applied at the same rate !

3) if you are prepared to leave the money on deposit for some time you can get up to 108-110 per cent of CDI with some government backed longer term products, which also have a huge guarantee behind them (into the millions of R$....)
 
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Billyredbull

New Member
It might be worth mentioning you will not get (or rather, be able to keep) an investors visa just for depositing funds into a bank account.

At least R$150,000 would need to be invested into an active, hands-on business, that creates directly Brazilian employment, payment of taxes, etc.

You may already be aware of this, so my apolgies if you are, however it is worthy of clarification at an early stage.
If I bought a property in Brazil would that be a good enough investment to get a visa?..
 
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JMBroad

New Member
If I bought a property in Brazil would that be a good enough investment to get a visa?..
Hi Billyredbull - welcome to the forums and thanks for participating.

I suggest you read the "Start Here - Absolute Basics" thread - if you go to the Brazil form it's one of the top three threads and is condensed information about investing in Brazil which is compiled from information submitted and reviewed by all participants on the forum including lawyers, developers, investors and real estate agents living and working and investing in Brazil.

The short answer is "no" but it's a bit more complicated than that - look at the Investor Visa information

Good luck.
 
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penelopy

New Member
I was thinking of investing in Brasil but have now decided not to. I think the pound being so low would make a property become way to expensive and the cost of returning profits if any back to the UK is not particulary reasonable and from what people have told me a headache, so I`ll keep to Spain whilst the prices are 35% cheaper and a much easier place get my money home.
 
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JMBroad

New Member
There are several factors to consider when investing in property. One is of course if you can afford it or not - there is no point trying to invest in a property market if you don't have the money to do it. However you can not base your whole decision on what you can afford.

Spain may well be 35% cheaper than Brasil (although I don't think so, not unless the prices have dropped by around 75% in two years since I was last looking at the market). Then again all depends what you are comparing it to. Expensive properties in Brazil are very expensive and cheap properties are very cheap. Personally I think you've probably been looking at the wrong product or only looking at places like São Paulo and Rio, which are among the most expensive property in the world, alongside places like New York, London, Paris and Berlin (well, most of Berlin is very cheap in comparison)

The primary consideration, in my view, after you have determined whether or not you can afford it, is whether it is a safe investment. I don't mean only legally but also whether you'll be able to sell it within your expected time frame. Who is buying in Spain at the moment? When you are signing your contract on your investment property in Spain, do you already know who and how you are going to sell it afterwards? I keep hearing people saying that they want to invest in property in other locations "because the price has come down so much that it can only go up from here"... well the prices are going down because there is no demand and too much supply - in Brazil we have the opposite. For two years running, we (real estate developers in Brazil) have failed to meet the targets set to us by the government to meet demand.

Our development company has increased 587% over the last two years (assets under management) and we are still not able to fill the demand for housing in our area. We are still selling out our developments in 3 to 6 months and our competition are having the same results.

That is the security of Brazil and the reason why people invest here.

But only if they understand the market.
 
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Billyredbull

New Member
I have no idea why you are answering this to me, what I am interested in is "If I bought a property in Brazil would that then allow me a visa to live there? as Im retired" and does anyone know excatly what the procedure is to get a visa in Brazil without marrying a Brazilian or having a child there, are there any other ways to get a living visa for Brazil??
 
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JMBroad

New Member
I have no idea why you are answering this to me, what I am interested in is "If I bought a property in Brazil would that then allow me a visa to live there? as Im retired" and does anyone know excatly what the procedure is to get a visa in Brazil without marrying a Brazilian or having a child there, are there any other ways to get a living visa for Brazil??
It was in reply to Penelopy who posted just before I did.

As for the visa - read "Start Here - Absolute Basics" as it's quite comprehensive - if you still have questions, feel free to ask :)

(Here is a link to the thread)
http://www.propertyforum.com/forum/brazil-property/12879-start-here-absolute-basics-investing-brazil.html
 
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