Most of the times that a person starts to make investments, he starts to research on tips on how to invest, where to start and, mainly, which are the most advantageous rates. At that moment, they end up with the terms CDB and CDI.
These two acronyms are fundamental to succeed in the journey as an investor. Therefore, you must know the difference between CDB and CDI, understand how to calculate them and what their yield indexes are. To assist you in this mission, we have prepared this guide content on the subject. You will find all the necessary information below, such as:
- What is CDB and CDI ?;
- What is the difference between CDB and CDI ?;
- What are the performance rates of these certificates ?.
To become an expert in the investment area, it is necessary to know other acronyms, such as fixed and post-fixed rates. Do you know the difference between them? We suggest reading this article here to know everything about the topic.
Now, to understand once and for all the difference between CDB and CDI, follow the reading of today's post. Come on?
What is CDB and CDI?
CDB stands for Bank Deposit Certificate, which is a fixed-income investment marketed by banks. It works when a customer makes a loan of money to the bank for a while, receiving interest for that transaction. This interest is precisely the income received at the end.
In this modality, the CDB security is issued with data on the transition, which may have fixed or post-fixed income. This means that the customer can choose to know exactly how much their application will yield at the end of the investment in the first option. If you choose the post-fixed rate, you will only know the percentage of which indicator will be paid at the end.
The CDB has some characteristics, such as:
- is considered to be low risk for being of fixed income;
- allows to the customer chooses between liquidity daily or not, that is, it is possible to redeem the amount at any time and not just when the investment matures;
- It has progressive IOF and is charged only if the redemption is made in the first 30 days;
- It also has Income tax progressive, with a rate inversely proportional to the duration of the contract, that is, the longer the investment period, the lower the calculation values at the time of redemption.
CDI stands for Interbank Deposit Certificate, which is a type of loan made between banks. This modality is carried out only between banking institutions, and it is not possible for a customer to purchase a certificate.
This loan has a particularity that is its duration. The operation in which a bank lends money is made in 24-hour periods and is a protective feature of the financial system.
This is because banks always need to end the day with their positive cash. Thus, if he does not have the money to close the day in blue, he needs the CDI to avoid being in the red.
Now that you know what CDB and CDI are, you may be asking yourself, “Why should I understand about CDI when individuals cannot take out this loan?” The answer is simple: the Interbank Deposit Certificate serves as a guide to CDB income.
What is the difference between CDB and CDI?
The difference between CDB and CDI is precisely in the investor. While the Bank Deposit Certificate is a fixed income investment where the client lends money to the bank, the Interbank Deposit Certificate is a kind of loan between financial institutions.
However, the CDI represents the indicator that measures the rates generated in the investments of CDBs. Therefore, to understand the difference between these acronyms, it is necessary to know how they relate.
How does the CDB and CDI work?
Now that you know the difference between CDB and CDI, you should better understand how they work.
The two certificates are closely linked, as the values used at the CDI are precisely the funds raised from customers at the CDB. This means that banks are only able to make interbank loans due to their clients' investments.
In short, the CDB works when the customer lends money to the bank, which in turn uses the amounts in other transactions. At the end of the investment period, the banking institution returns the amount applied to the investor, plus the interest provided for at the time of acquisition or according to the rates determined.
Thus, if you choose a fixed rate, the customer will receive interest from a fixed rate, which may yield, for example, 7% per year. In the case of the post-fixed CDB, the customer will receive from a rate chosen as a reference.
Meanwhile, the CDI works when the financial volume of withdrawals exceeds that of deposits, which requires the bank to make a CDI loan with another bank to raise capital and regularize its daily cash.
The CDI ensures that the banking market is more fluid, as institutions can help each other. In addition, it helps the bank to ensure the fulfillment of all its commitments and, in this way, protect its account holders.
But, after all, which is better CDB or CDI? Check below the performance indexes of each one of them.
What are the performance rates of these certificates?
The rates for each investment will depend on each bank, as the amounts may vary according to what each bank lends or borrows from its account holders who apply at the CDB.
In the case of fixed-rate CDB, for example, according to the BTG Pactual, an investment with a five-year maturity has a CDB yield rate of 9% pa with a minimum value of £ 10,000.00.
Now, the post-fixed CDB may vary according to the CDI. For example, in a CDB that offers 120% of the CDI, the yield will be according to the daily fluctuation of the CDI x 120%.
And how much does the CDI earn? To calculate this application there is no mystery. You need to multiply the reference percentage expected or agreed upon in the application by the variation of the CDI rate in a given period.
Most of the time, the CDI follows with reference to Selic, which is the basic rate of the economy defined by the Central Bank. Therefore, CDI's yield currently revolves around 2.15% per year, considering that the Selic rate was fixed at this value at the last meeting of the Copom in June 2021.
Given all that you could see here, you can already understand that the difference between CDB and CDI is that the first is a type of investment between client and bank and that the second is the name given to the rate that generates the CDB's income . Therefore, it is not possible to make comparisons as to which is more advantageous. It is necessary that you follow the variants that interfere in the CDI rate and, thus, define if you prefer a prefixed or post-fixed CDB.
What is your investor profile? Do you prefer fixed or post fixed rates? Tell us in the comments below.