Interest frozen, saving high
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Central Bank maintains base rate at 8.75% and takes advantage of savings on to fund that charges 0.8% management
Rio - The Monetary Policy Committee (Copom) of the Central Bank maintained the basic interest of the economy at 8.75% per year, breaking series of five consecutive cuts. The decision was to bet the majority of analysts, mainly due to signs that the global crisis weakened. Even with the rate target at 8.75% per year, the savings become even more competitive against DI funds and fixed income.
Professor of Finance, Yu Chieh Liao explained that funds with management fee of at least 0.8% a year since they lose to the savings, if applying for short-term (six months), during which the rate of tax rent charged is higher, 22.5%. In this case, the return to investors is 0.50% per month. Savings, free of tax and administration fee, the cost ranges from 0.51% to 0.57%, depending on the anniversary of the book. This year, 140 thousand small investors have left the funds.
One should be attentive to the management fees charged, a fundamental factor in time to make the decision. Long-term investments provide greater relief. For a period up to 720 days, when the rate of IR drops to 15% funds rate of 1.45% per year also yield 0.50% per month. "From 1.5% per year, in any case, it is worth applying in the background," warns Chieh.
However, finding attractive rates is very difficult task for the small investor. According to a survey of Fortune site with short-term funds, fixed income and DI, supplied in large banks, the most popular applications, with initial value of up to $ 5 thousand, charge an average management fee of 3% per year. In the group with initial application of $ 5 thousand to $ 100 thousand, the average is 1.4% per year. The cost of administering drops to 0.8% per year just in the initial implementation with funds from $ 100 mil.
To Chieh, the competitiveness between the investments would tend to lean to the funds if the government approves the decrease in the IR that is being charged or higher tax balances in savings, the proposal discussed in May, but has not advanced, mainly because wear policy on the closeness of the election year of 2010.
Selic should not fall further this year
The decision of the Monetary Policy Committee was unanimous and increased bets that interest rates do not change it this year. In a statement, the directors of the Central Bank said that the current level of the Selic rate is able to ensure the recovery of the economy without generating inflationary pressures.
Trade, industry and labor unions have criticized. Fecomércio-President of RJ Orlando Diniz said that the interruption of the cuts was premature: "With a lower risk of inflation, we lose the opportunity to reduce the discrepancy between our interest rates and average."
For Firjan, you need to control spending and reduce the spread (the difference between what banks pay to raise money and they charge). The Union Force emphasizes that the decision "frustrating workers and encourages speculators."
Source: The Day
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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