65 Percent of Brazilians Saving Money Choose Savings Accounts
By Xiu Ying
RIO DE JANEIRO, BRAZIL – Despite lower yields in comparison to other investments, saving accounts remain the favorite option among Brazilians holding some money. According to a survey by the National Confederation of Store Managers (CNDL) and the Credit Protection Service (SPC Brazil), this is the case for 65 percent of people.
The second most common form of saving among Brazilians is to leave money at home, reported by 25 percent of respondents – even though this is a cause for alarm among specialists for safety reasons. Leaving money in the checking account is the option for 20 percent of respondents. Only eight percent report they invest in private pension plans and eight percent in treasury bonds.
Among the reasons for not seeking investments with more advantageous returns are:
- the preference for applications that allow easy withdrawal (28 percent);
- no surplus funds for other investments (28 percent);
- habit (20 percent);
- fear of losing money (17 percent).
The survey also assessed the main goals of people who save some money regularly. For the majority (60 percent), saving means protection against unforeseen events such as unemployment or unexpected health expenses.
The study shows that withdrawing money from savings to cover unexpected expenses is common among many Brazilians. Among those interviewed, 40 percent said they were forced to withdraw part of the money saved, and one of the most commonly reported causes (ten percent) was the need to defray unforeseen expenses.
However, not all of the money withdrawn from savings is used by consumers to cover unexpected expenses. Among those surveyed, 13 percent said they needed to withdraw money to pay monthly bills. Another ten percent withdrew funds to pay off outstanding debt.
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