Learn what federal government bonds are and how to invest in this category

Learn what federal government bonds are and how to invest in this category

Table of Contents

In times of crisis, one of the alternatives to ensure more financial gains is investments. However, despite gaining supporters, many do not know what federal government bonds are and do not even know the various categories to invest.

One of the forms of investment that has gained the most followers is the Tesouro Direto. In 2021 alone, the number of investors grew 20.19% over the previous year, according to Treasury Direct data.

This means that more than 1.4 million people held federal government bonds in December. You may be wondering, but what are federal government bonds?

It is a category of loan made by the federal government, considered one of the most secure types of fixed income investment today.

To help, in this article, to understand what federal government bonds are and how to acquire them, you will learn:

  • What are federal government bonds ?;
  • What type of investor is it intended for ?;
  • How to invest in federal government bonds ?;
  • What are federal government bonds ?;
  • Federal government bonds: profitability;

So, come on!

What are federal government bonds?

Federal government bonds are income securities issued by the Federal Government.

They are made available to individuals in order to assist the government with the payment of public debts or even government activities, in several areas, such as health and education.

The category has existed since 2002 and is under the responsibility of the National Treasury Secretariat, the Ministry of Finance, which issues and controls the bonds.

There are many federal government bonds, different characteristics and according to the possibility of each investor. It is a kind of loan, with the citizen lending money to the government, which, in turn, will return the amount with interest to the individual.

Much like the loan relationship between citizens and banks, for example.

What type of investor is it for?

Now that you know what federal government bonds are, it is important to know which investor they are recommended for.

Federal government bonds are one of the safest investments, so it is indicated for more conservative investors, who seek low risk when making investments. Know your investor profile, clicking here, and read our article on the topic.

In addition, it is an affordable investment, as there are government bonds from 30 reais.

The low risk is due to the fact that the National Treasury controls the country's economy, so the chances of breaking and not returning the investor's money are almost non-existent. Therefore, there is a lot of security about the refund of the amount applied.

Another positive feature for the conservative investor, who already knows what federal government bonds are, is the fact that the bonds can be redeemed without a defined term.

That is, if you have an unforeseen event and need the money you invested, you can get it back in up to one business day. However, you need to be aware that, depending on the chosen federal public title, the profitability may be lower if you withdraw before the stipulated period.

How to invest in federal government bonds?

Another important reason in the question: what are federal government bonds? It is knowing that they are accessible and can be purchased over the internet. The prerequisites for becoming an investor in the Direct Treasury are:

The step by step to acquire a federal government bond is quite simple.

  1. The interested party needs, first, choose a stockbroker. This company will act as an intermediary between the investor and Tesouro Direto.
  2. After the choice, it is necessary to open an account, presenting personal data, just as it would work in a common financial institution.
  3. After the account is opened, the investor must transfer money from your common checking account to your brokerage account.
  4. When you have free access to Tesouro Direto, you will be able to invest. You must then choose which title according to your needs, how much you want to invest and finalize the process.

What are federal government bonds?

Now that you understand what federal government bonds are and how to acquire them, let's talk about the various options available for investment. There are three main categories:

  1. Prefixed;
  2. IPCA + Treasury;
  3. Selic Treasury;

And among each of the characteristic federal government bonds they differ and are decisive for the choice of a type, according to their investor profile and needs.

Federal government bonds: profitability

Even knowing what federal government bonds are, it is essential to know the differences between the categories, which is mainly linked to profitability. Therefore, understand below how the yield of each type of federal public security works.

1. Prefixed

As the name says, it is a federal public bond with fixed rate, that is, it has a fixed interest rate. Then, when making the investment, it is possible to know exactly when you will receive at the end of the security's maturity.

This category is ideal for those who have medium and long term goals.

two. IPCA Treasury +

Profitability is linked to inflation, which is related to the Broad Consumer Price Index (IPCA). In this type of government bond, the yield will be the rate of inflation (variable) plus a fixed rate of interest.

The main advantage is profitability above inflation, however, it is more suitable for those who want to invest in the long term. Because it is the most profitable, this is the category most chosen by investors today.

3. Selic Treasury

They are floating-rate securities and the yield varies according to the Selic Rate, which is the economy's basic interest rate. It is the one with the lowest profitability, however, it is the safest for those who need to make redemptions in the short term. Ideal for those who are starting to invest.

On the website of Direct Treasury, it is possible to check all the securities currently available, the conditions, dates for redemption, in addition to the advantages and disadvantages of each of the securities.

Knowing what federal government bonds are, it is time to analyze whether it is the type of investment that matches your profile, the options available on the market and start making your money pay off.

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