If there is a financial product that we all know since we were little, it is savings. For decades, it was the preferred (and for many, the only) investment of Brazilians, but is it still worth it in times with so much variety and tokenization?
In order to answer this question, it is necessary, first of all, to define that a savings account is not an investment. This was an accepted concept for decades, when the capital market was small and elite.
Its cost-effectiveness has long been the option for low-income families to protect value for money. However, savings do not fulfill the main objective of an investment: to provide real appreciation for the invested capital.
On the other hand, many Brazilians use savings, which is an easy, affordable and quick way to invest their savings. But is it the only simple way to invest?
Aren’t there investments that deliver everything and more profitability?
BLOCKBR, a native web 3.0 company, will show you why not to keep your money in savings and how tokens are a great alternative to invest!
THE DANGERS OF LEAVING MONEY STOPPED IN SAVINGS
1 – LOW PROFITABILITY
If we consider savings as an investment, it should be categorized as a fixed income product, that is, with a remuneration rule defined at the time of investment – and for savings, the gain is universal, regardless of the amount invested and the term:
- 0.50% per month when the Selic Rate is above 8.50%
- 70% of the Selic Rate when it is up to 8.50%.
It is a low gain, the lowest among investments in the category and that includes fixed income tokens, which are already common in the market. That is, putting money in the passbook is the worst option to make money grow.
2 – LOSSES TO INFLATION
The low profitability of savings would be tolerable for many Brazilians if there wasn’t something worse: the savings account loses to inflation.
According to a survey by the financial data platform TC/Economatica, from July 2021 to July 2022, the real return on savings, discounting inflation, was negative by 3.52%.
This would already be reason enough for savings to no longer be considered an investment, as we are talking about a fixed-income investment, there are no market risks that will impact variable-income assets.
Fixed income investments and variable income: see the differences!
3 – HIGH LIQUIDITY BUT EXPENSIVE
Savings maintains the tradition of investing with the best liquidity, we can redeem the amounts at any time, without bureaucratic procedures. However, this comes at a high price: the savings earns on the anniversary date (date of original deposit).
If the capital is redeemed before the anniversary date, all income from the previous 30 days is lost and this weighs on the decision to use the money immediately (when it is not possible to wait).
In investments, the return is proportional and even when there is an incidence of income tax, the investment remains attractive.
4 – NOT THE SAFEST APPLICATION
Savings are guaranteed by the Credit Guarantee Fund, which covers balances up to a certain amount in case of bank failure.
Practically all fixed income products and many variable income products are protected by the FGC. Therefore, there are applications with the same level of security and with higher returns.
5 – THERE IS NO DIVERSITY
Savings works in a single way, with the remuneration varying according to the rules seen before, which is little for the need to take good care of the money – especially in times of crisis – and stifles the expectation of gain.
On the other hand, there are pre-fixed and post-fixed financial investments with higher gains.
WHAT IS INVESTMENT TOKENIZATION?
Tokenization is the creation of a digital asset – the token – that represents assets – physical, financial or digital – rights and even business projects and that will be offered to the general public.
Companies and financial institutions can trade tokens directly with the investing public, as is the case with tokenized stocks, fixed and variable income securities, credit rights, and other assets.
To invest in investment tokens, all you need is a digital account on a token platform and the digital wallet to store your investments. And they are simple procedures like downloading an application or opening an account on a website!
WHY IS TOKENIZATION BETTER THAN SAVINGS?
There are many reasons why you should invest in investment tokens and stop losing profitability with your savings. See some!
6 – DIVERSITY THAT INCREASES EARNINGS
It is possible to find several investments through tokens, from the best known such as stocks and debentures, to recent assets such as consortium tokens and credit rights funds.
And with something important: they are offerings backed by real assets, guarantees, or solid institutions, such as the securities tokens, and with the same legal guarantees as the traditional versions that banks and brokerage houses trade.
7 – MORE ACCESSIBLE INVESTMENTS
Did you know that there are investment tokens where you start by investing very little? Whoever has a balance of 100 Reais in a passbook today can invest in assets that pay above inflation and with low risk.
This is because offerors can split products – for example, offering receivables tokens, which are traded in full with banks, into small, affordable parts for all investors.
8 – MORE AGILITY AND AVAILABILITY
Trading of tokenized investments is done directly between offeror and investor, through the sales platform and the customer’s digital account. There are no middlemen and, therefore, the process is faster.
Also, the token platform works around the clock, so you can apply any day and any time, without worrying about brokerage systems or banking hours!
9 – TRADING TOKENS IN THE SECONDARY MARKET
Various investment products can be traded on the secondary market – that formed by people or companies that have bought securities on token marketplaces.
This allows you to diversify your investment basket quickly, which is not possible with the savings account, which is non-negotiable and has a certain date to guarantee the yield.
GET MORE PROFITS BY INVESTING IN TOKENS ON BLOCKBR!
At first glance, buying tokens may seem complicated, especially if you are used to savings account transfers and withdrawals.
However, applying it to tokens is very simple. You will only need to open an account at an asset token broker like BLOCKBR and create a digital wallet to store your investments.
After that, you can access our marketplace of token offerings and choose those that align with your investor profile: initial amount, investment term, defined or estimated yield (depending on the product type), and how the yields are paid.
You will have a very wide variety of assets, offering companies, and earning possibilities, and you can start investing in tokens with 50 reals!
BLOCKBR Digital Assets is a native fintech web 3.0 that brings technological innovation and digital knowledge to transform physical assets into digital ones, in the tokenization process.
The supply of tokenized assets is democratic and decentralized, which makes the way of investing safe, simpler and more efficient.
We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.
Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?
