Brazilians Withdraw More from Savings Accounts in 2024

BRASILIA (Reuters) – In 2024, Brazilians continued to withdraw more from their savings accounts than they deposited for the fourth consecutive year, according to central bank data released on Wednesday.

Net withdrawals totaled 15.5 billion reais ($2.5 billion), a significant decrease from 87.8 billion reais in 2023, 103.2 billion in 2022, and 35.5 billion in 2021.

In December, typically a good month for savings, the net inflow was 4.9 billion reais, marking the smallest December inflow since 2015.

Savings accounts are crucial for funding real estate credit in Brazil, and the central bank has been considering changes to their remuneration. Higher interest rates often make other fixed-income investments more appealing, leading to increased withdrawals.

The benchmark interest rate in Brazil ended 2024 at 12.25%, up from 11.75% at the beginning of the year, as policymakers aimed to tighten borrowing costs to mitigate inflation driven by strong economic activity and a weakening currency.

($1 = 6.1291 reais)