Brazil sees net deposit inflow to savings accounts

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Thursday, December 7, 2017

Brazil saw a net inflow of savings account deposits last month due to the improving economy and low interest rates.

The net inflow in November totaled 3.9bn reais (US$1.2bn). In the first 11 months, however, savings accounts registered a net outflow of 2.25bn reais, according to the central bank.

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In recent years, Brazilians have put less money into savings accounts as high interest rates prompted them to invest in other fixed-income alternatives.

However, the central bank's current monetary easing cycle - with a total of 725 basis points in rate cuts - has made savings accounts more attractive again. The gradual recovery of Brazil's economy has also allowed people to put aside more money for savings.

Last month's figure is positive for the real estate sector as savings accounts are the largest source of mortgage funding in Brazil.