Savings see 3rd largest net withdrawal in Brazil’s history

Low yields played a major role in sending savers away

Published in 07/01/2022 - 11:17 By Wellton Máximo - Brasília

Brazil’s savings accounts in 2021 saw the third highest net withdrawal in the country’s history. Last year, investors withdrew BRL 35.5 billion more than they deposited, the Brazilian Central Bank stated Thursday (Jan. 6).

Among the reasons behind the phenomenon are low yields, higher indebtedness among Brazilians, and the end of the government’s emergency allowance for low-income families.

Net withdrawal—the difference between withdrawals and deposits—was preceded only by 2015’s BRL 53.57 billion and 2016’s BRL 40.7 billion. In those years, the severe economic crisis led Brazilians to withdraw funds from their savings accounts—the most popular form of investment in the country.

Translation: Fabrício Ferreira -  Edition: Nira Foster

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