Brazilians withdrew $1.5 billion more than they saved in January

In a month traditionally marked by education costs and taxes, Brazilians once again withdraw money from their savings accounts. In January, the net withdrawal (withdrawals minus deposits) added up to $1.5 billion, according to figures released Tuesday (Feb 6) by Brazil's Central Bank.

For the fourth consecutive year, investors are reported to have withdrawn more than they saved in January. The total withdrawn in January 2018, however, is lower than it was in other years. The net withdrawal had totaled $1.7 billion in January 2015, $3.67 billion in January 2016, and $3.29 billion in January 2017.

Recent history

Late in 2017, the total saved had seen its first positive balance since 2014. Last year, Brazilian deposited $5.27 billion more than they had withdrawn.

Despite the reduction in interest, savings had once again attracted investment in the last months of last year, as investment ensured above-inflation yield. Inflation, however, hiked over recent months, cutting real profit (i.e. increase in prices not considered) of savings accounts.

Translated by Fabrício Ferreira