Savings withdrawals hit all-time peak

The record-breaking figure was reported for the first half of 2015 as

Published on 07/07/2015 - 12:24 By Wellton Máximo reports from Agência Brasil - Brasília

Moeda, dinheiro

Imagem de Arquivo/Agência Brasil

The balance of savings deposits has gone down for the sixth consecutive month. According to a Central Bank release Monday (July 6), Brazilians have withdrawn $12.2 billion more than they deposited in savings accounts in the first half of 2015. Savings saw the worst net inflow (deposits minus withdrawals) for the period ever.

From January to June, Brazilians put $289.5 billion in savings, but withdrawals totaled $301.7 billion. In June alone, they withdrew $2 billion more than they deposited in savings accounts (resulting from $51.8 billion in deposits and $53.8 billion in withdrawals), the worst net inflow recorded for the month.

The savings drain can be traced to a number of factors. First, a rising benchmark interest rate has made savings less appealing compared to other investments. According to the National Association of Finance, Management and Accounting Executives (ANEFAC), putting money into a savings account is only more advantageous than investment funds for periods shorter than six months, even though savings accounts are exempt from income tax and management fees.

Inflationary pressures have also led savings to lose some of its attractiveness. Furthermore, rising prices and consumer indebtedness have reduced people's spare money.


Translated by Mayra Borges


Fonte: Savings withdrawals hit all-time peak

Edition: Maria Claudia / Augusto Queiroz

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