Certificates of Deposit

  • The product

    The Certificate of Deposit is one of the most popular investments, offering liquidity and coverage of the Credit Guarantee Fund as its main features.*

    The Certificate of Deposit (CDB) is one of the most traditional financial instruments in the Brazilian market, as well as the most purchased Fixed Income security by individual investors. Established by Law No. 4,728, dated July 14, 1965, the paper is also an important fundraising source for financial institutions.

    For investors, CDB is interesting because the asset may be acquired with daily liquidity and the instrument is eligible to be covered by the Credit Guarantee Fund (FGC)*. The risk linked to those who acquire CDBs is directly related to the health of its issuer, which is a financial institution.

    CDBs’ features are determined at the time of trading. At that moment, term and yield shall be previously defined. The compensation, which can be pre-fixed or post-fixed, is based on several indices. The DI-rate is most widely used.

    CDB investments over R$ 5,000 must be registered in an asset clearinghouse, providing the investor's identification. This obligation is valid when the CDB is issued by the same financial institution, on the same day, to the same investor. Circular Letter 3709, which became effective in March 2015 for new CDBs and will be effective in August for old CDBs, defines this rule. B3 registers CDBs since 1986, consolidated as a market leader.

    *Up to the limits established by the fund for deposits or credits by CPF / CNPJ and by the financial institution of the same group.