São Paulo – Withdrawals from the savings accounts are overcoming deposits in R$ 2.453 billion (US$ 693 million) in July, the worst month results since the start of the historical series in 1995 and the seventh straight negative result of the sector. According to data released this Thursday (6th) by the Brazilian Central Bank, withdrawals of savings accounts in the year are toping deposits in R$ 40.9 billion (US$ 11.57 billion).
One of the reasons for the withdrawals is the rise of the benchmark interest rates, currently at 14.25%. The return on investments in fixed income funds goes up along the interest rates. Meanwhile, returns from savings accounts are limited.
In the last 12 months, the return was of 7.53%, below the official inflation rate. Increase of prices and indebtedness of consumers also have an impact in the results.
*Translated by Sérgio Kakitani
