Why Your Traditional Savings Account Isn't Yielding as It Should
Despite being the most popular investment choice among Brazilians, the savings account has been yielding returns below inflation in recent years. This means that, in practice, your money might be losing value instead of growing. In 2025, with the constantly changing economy, keeping all your money in a traditional savings account could be a costly mistake for your financial future. But don't worry, there are much more efficient alternatives.
5/5/20252 min read
what is savings?
Savings are a type of fixed-income investment, characterized by being a way of saving money for future goals, with security and immediate liquidity.
Profitability:
Savings yield interest on the amount deposited, which is calculated based on the Selic rate, which is the economy's basic interest rate.
Risk:
The risk of savings is considered very low, as the amounts deposited are protected by the Credit Guarantee Fund (FGC) in the event of bank failure.
Liquidity:
Savings offer immediate liquidity, which means that the investor can withdraw the money at any time.
Advantages:
Security, immediate liquidity, income tax exemption for individuals and ease of access.
Disadvantages:
Low profitability compared to other investments, with the possibility of not outpacing inflation.
Translated with DeepL.com (free version)
5 Effective Strategies to Grow Your Savings
1. Diversify Your Investments
One of the biggest mistakes when trying to grow your savings is putting all your eggs in one basket. Diversification is essential:
Treasury Direct: government bonds with security and returns superior to savings accounts
CDs (Certificates of Deposit): bank certificates with attractive returns
Investment funds: options for different risk profiles
Variable income: for a smaller portion with a long-term vision
By distributing your money across different types of investments, you not only reduce risks but significantly increase your earning potential.
2. Establish Clear Objectives for Your Financial Reserve
Saving without a defined purpose can be demotivating. Set specific goals:
Emergency fund (3 to 6 months of expenses)
Medium-term projects (2 to 5 years)
Retirement and financial independence
With clear objectives, it becomes easier to choose the best investments for each purpose and timeframe.
3. Automate Your Monthly Investments
One of the most powerful techniques to see your savings grow is automatic investment. Set up automatic transfers to your applications right after receiving your salary.
This simple strategy eliminates the temptation to spend money that should be invested and creates a consistent investment habit, taking advantage of the power of compound interest over time.
4. Monitor and Adjust Your Strategy Regularly
The financial market is always in motion, and your strategy needs to keep up with these changes:
Check the performance of your investments quarterly
Reassess your resource allocation at least once a year
Adjust your strategy as your life goals change
This constant monitoring ensures that your money is always working in the most efficient way possible.
5. Continuously Learn About Financial Education
Knowledge is the greatest ally to grow your savings. The more you understand about finance, the better decisions you make with your money.
Why Many People Fail When Trying to Grow Their Savings
The lack of adequate information is the main reason why so many people continue to lose money with outdated strategies. Without specific knowledge about investments and financial management, it's almost impossible to beat inflation and see your assets grow substantially.
Conclusion: Your Savings Can Grow Much More Than You Imagine
Growing your savings is not a mystery nor does it require extraordinary knowledge. With the right strategies, discipline, and good guidance, anyone can transform their financial reality.
Take the first step today, whether by educating yourself on the subject or seeking expert guidance. Your financial future will thank you for every smart decision you make now.
And what about you, will you continue to see your money stagnant, or are you ready to make your savings really grow? Share in the comments which strategy you plan to implement first!