Earning yield: leave it in the account or invest?
The average investor still underestimates how much IOF eats into the return on their financial transactions. The problem? That blind spot is expensive.
Amid speculation about an IOF increase (IOF is Brazil’s tax on financial transactions), the topic is causing doubt and concern among investors. The proposed changes would directly affect the cost of investments and transactions abroad, such as pension plans and remittances. Even though the decree was revoked, the issue is still under discussion in Congress and the Senate. That makes it urgent to be clear about what’s at stake and how it may influence financial decisions from here on.
The invisible cost of IOF
Most investors still underestimate the impact of IOF on the return of their investments. Although it applies to virtually every financial transaction, it is often ignored when calculating real returns. The problem is simple: IOF makes the investment chain in Brazil more expensive, hurting the system’s efficiency and transparency.
Strategy: build liquidity tiers
For companies with significant cash balances, an interest-bearing account is the first step. The next is to build a liquidity ladder: allocate part of the funds to longer terms (10, 15 or 30 days, for example) in search of better rates.
Spreading funds across maturities lets you combine liquidity with return, increasing earnings without compromising operations.
Keep it in Brazil or send it abroad?
That decision depends on several factors, but IOF is one of the main ones.
At current rates, sending money out of the country can mean a considerable loss right from the start. Meanwhile, the CDI (the interbank rate that benchmarks Brazilian fixed income) remains at historically high levels, which makes an interest-bearing account a competitive alternative.
The choice should start from a clear understanding of the company’s goals. In many cases, keeping capital in Brazil can be more advantageous than chasing international opportunities without tax planning.
The question you need to ask
Do you know how much IOF is costing your company? Ignoring this detail can mean losing efficiency exactly where it matters most: in your cash.
If your priority is to optimize investments, improve treasury returns and make decisions with tax clarity, we’re ready to help, with technical expertise and tailored solutions.
Watch the video on the Trio Fala channel (in Portuguese) to see how an interest-bearing account and investing the right way can help your business.
If you’re ready, talk to a specialist and start putting your money to work.
