Referential Rate: what is the monthly TR and how it works

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Referential Rate: what is the monthly TR and how it works

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THE Referential Rate is a monthly tax defined by the Central Bank of the UK that serves as the basis for interest in the country. ANDit is very important for your financial life, as it impacts applications such as savings accounts and some mortgages.

To understand how does TR It is critical to help make better investment decisions by predicting what the average return will be.

With that in mind, in this article we explain everything you need to know about the monthly TR, from the definition of the term to its impact on investments and government bonds. Interested? Keep reading the post!

What is Referential Rate?

Referential Rate is a Monthly fee defined by the Central Bank to serve as a benchmark for interest rates in the UK.

It was created during the Collor II Plan, in 1991, in an attempt to control the hyperinflation, whose values ​​exceeded 2,400%. At the time, the government published daily the price of the currency, which in turn also suffered large variations.

Today, the monthly TR still exists, but it has changed focus: it is used as readjustment index of financial investments, serving as one of the general indicators of the UK residents economy.

In practice, it is used in monetary correction of applications such as savings, FGTS and some types of real estate financing.

How TR works: formula


The calculation of the reference interest rate is based on two mathematical formulas. The first is as follows:

R = a + bx TBF

In this formula:

  • R = reducer;
  • a = fixed value equal to 1.005;
  • b = variable value that depends on the TBF (published by the Central Bank);
  • TBF = Basic Financial Rate.

Once you find the value of R, you need to substitute the values ​​in the formula below. The result will be the TR value:

TR = 100 x { [(1+TBF)/R] – 1}

Important: when the calculation of the reference rate results in a negative value, it is considered zero, due to a resolution by the Central Bank.

What is the difference between the daily Referential Rate and the monthly TR?

There are two variations of the Referential Rate: daily and monthly.

THE TR monthly is used for monetary correction when the investment remains invested in the full month period, which is calculated as 23 days.

THE daily reference rate disclosed by the Central Bank is the share proportional to its monthly value. Therefore, if you redeem your investment before the month ends, the adjustment will be made based on that date.

How the Referential Rate influences each type of investment

As mentioned before, the reference rate has an important impact on some applications available on the market. But, after all, how does this happen in practice? We will tell you the details below.


Since 2012, when the government changed the income rules of the savings accounts, the Referential Rate has a great impact on this type of investment.

If the Selic rate you are above 8.5% per year, the savings income is 0.5% per month added to the TR value.

If Selic is equal to or below 8.5% per year, the yield becomes 70% of the basic interest rate plus the Reference Rate.


O Severance Indemnity Fund (FGTS) is a labor right in which the employer monthly deposits to the worker an amount corresponding to 8% of your salary.

The money is in an account at Caixa Econômica Federal, and can only be redeemed according to specific rules.

As this value remains untouched for a long time, the government establishes a profitability for the Fund that takes into account the Referential Rate.

Currently, the FGTS yields 3% per year + TR.

Capitalization titles

You capitalization titles they are a form of “programmed savings” very common in large banks. Every month the institution withdraws an amount from your account to buy this title, which offers the possibility to participate in drawings for various prizes.

When the term of the title expires, you get all the money you put back.

The yield of this type of investment follows exactly the reference rate corresponding to the period in which the money was stopped, which in recent years means a very low value.

real estate financing

Not all loans are affected by the reference rate, only those for properties that are part of the Housing Finance System (SFH), maintained by Caixa.

In this case, the amounts are adjusted based on fixed interest, defined by the banking institution, added to the Referential Rate.

What is the relationship of the Referential Rate with government bonds?

In the past, it was possible to find government bonds that yielded according to the variation of the Referential Rate, such as the extinct ones NTN-H and NTN-P. They are currently discontinued, but some veteran investors may still have them in their portfolios waiting for the expiration date.

Previously, with the reference rate on the rise, these papers had higher yields, so they were very advantageous. However, under current conditions, they would not be attractive to investors, so the National Treasury started to offer other modalities:

  • Prefixed Treasury (LTN);
  • Prefixed Treasury with semiannual interest (NTN-F);
  • IPCA+ (main NTN-B);
  • IPCA + with semiannual interest (NTN-B);
  • Selic Treasure (LFT).

Government bonds are one of the best ways to start investing because they are safe, simply and invariably yield more than savings. Check out the advantages of this type of application:

  • minimum contribution of only R$30;
  • real gain on the IPCA;
  • high profitability, considering it is a fixed income security;
  • low risk;
  • easiness to invest and monitor;
  • daily liquidity;
  • it is possible to request the redemption at any time, since the government itself buys back the papers.

>> To learn more about government bonds, check out this other blog post: ‘Treasury Direct: everything you need to know to invest' <

Now that you know everything about the Referential Rate, you are better prepared to make better decisions about your investments.

Remember if: to make applications intelligently, information is essential.. Therefore, keep studying about the financial market to accumulate knowledge and discover the best ways to multiply your money.

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Did you like the article? Tell us in the comments this post will help you with your investments and financial decisions. We are available to answer any questions you may have on the subject!


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