Tesouro Direto

Technical information

• The product

  Tesouro Direto is an alternative investment in which the investor knows, at the time of application, how his/her money will yield in the future. Besides being a simple product to invest and make possible the choice for a wide range of Treasury Securities, it is extremely secure and allows initial applications starting from BRL 30. By investing in Tesouro Direto, the interested person purchases treasury Securities with the safety of the National Treasury. Each Treasury Security has its own maturity date, but it is possible to sell it beforehand.

  Understanding the remuneration of bonds

  There are two types of Treasury Securities, according to the profitability offered: fixed rate securities and floating rate securities.

  Understanding the difference:

  Fixed Rate Securities
  Fixed rate securities have their yields determined at the time of the purchase. In other words, the investor knows exactly the value he/she will receive if he/she holds the security until maturity date.

  Floating Rate
  Floating rate securities have their value adjusted by an index. Thus, the profitability of the application depends on the performance of this index (inflation or interest, for example), and the contracted rate at the time of the purchase.

  Security Name*	Tield
  Fixed Rate Treasury 20XX (LTN)	Fixed rate, discount rate set at the moment of the purchase..
  Fixed Rate Treasury with biannual Interest coupons 20XX (NTN-F)	Fixed rate, discount rate set at the time of purchase and payment of biannual interest coupons.
  Selic Treasury 20XX (LFT)	Floating rate, linked to the variation of Selic interest rate.
  Treasury IPCA (Consumer Price Index) + Biannual Interests 20XX (NTN-B)	Floating rate, linked to the variation of the IPCA inflation, plus the interest rate set at the time of purchase and payment of biannual interest coupons.
  IPCA Treasury + 20XX (NTN-B Principal)	Floating rate, linked to the variation of the IPCA inflation, plus the interest rate set at the time of purchase, without periodical payment of interest coupons.

  * XX indicates the year of maturity of each bond.
  In addition to the securities mentioned, there is also the National Treasury Note Series C (NTN-C), with floating rates, linked to the variation of IGP-M inflation. However, it is not authorized for purchase, only for early redemption of those who already have them as investment.

• Benefits
  • Lower risk and lower cost
    Being an application honored by the Federal Government, it has low risk when compared to other investment alternatives offered in the market. In addition, applications in public securities generally have a lower cost in comparison with funds.
     
  • Flexibility
    It is a versatile application. Namely, that allows applications of large or small values, with several due dates and payment arrangements, enabling the investor to program his/her financial recover, at their discretion.
     
  • Liquidity and repurchase
    It is possible to recover the application before maturity. The National Treasury guarantees the repurchase of securities, daily.
     
  • Diversification
    As there are two types of bonds, with fixed e floating rates, Tesouro Direto allows investors to diversify their applications, including high or low scenarios of interest and variation of inflation.
     
  • Accessibility
    It is possible to start an application with BRL 30.
     
  • Convenience
    The investor applies, monitors, and recovers the money over the internet and can still schedule purchases, sales and opt for automatic reinvestment.
     
  • Tax advantage
    The income tax (IR) is only charged from the investor upon maturity of the bond or at its early recover, or upon receipt of biannual installments, depending on the type of bond.On the other hand, in the fixed income investment funds, the tax is collected every six months.. As the portion of Income Tax remains at the Tesouro Direto  investor's portfolio until its recover, it continues to earn interest.
• How it works

  What is it and how payment of periodic interest works?
  Periodic payments of interest made by some securities of Tesouro Direto are also called interest coupons. These payments are made in the investor’s bank account, on the dates previously agreed.

  At each payment, the investor receives the money (compensation) accumulated in the current period. That is, the period between the previous and the current payment. Do not confuse! The total investment recover happens only on the maturity date of each bond, regardless of the type of investment chosen.

  

  What is the  profitability on Treasury Securities?
  If the investor holds the Treasury Security until the maturity date, the profitability achieved will be that initially agreed. If the security is sold before the specified date, the investor will receive its market price, according to the market conditions of the day.

  I want to invest. What are the rules for purchasing and selling securities?

  Traditional investment	• Scheduling the purchase and sale operations in addition to the automatic reinvestment of the biannual interest of securities and the amount to be recovered in due dates.
  Investment scheduled	• Scheduling the purchase and sale operations in addition to the automatic reinvestment of the biannual interest of securities and the amount to be recovered in due dates.
  Limits on purchase and sale	• In traditional or scheduled purchases, the minimum portion of purchase is 1% of the value of a security (0.01 part of the security), provided that the financial limit of at least BRL 30 is observed. • The maximum financial limit of monthly purchases is BRL 1 million. • No financial limit for sales.
  Operating hours	• Purchases are made from 9:00 am of a day to 5:00 am of the following day. • The period of daily sale starts at 6:00 pm, remaining open until 5:00 am of the following day. Redemption prices are reported from 6:00 pm.

  Meet the daily redemption service

  Understanding the rules:

  • the period of daily redemption starts at 6:00 pm, remaining open until the 5:00 am of the following day.
  • the National Treasury informs, through the system, the redeption prices of securities from 6:00 pm;
  • after that time, investors are able to include redemption orders of their securities;
  • the settlement of the redemptions occurs one day after the operation (D+1);
  • weeks in which occur Monetary Policy Committee (Copom) meeting: on Wednesdays on which there is Copom meeting, only the security named Selic Treasure 20XX (LFT) will be available for redemption, while the rest will have its negotiations suspended.