CDB, LCI and LCA are different types of investments fixed income which can be offered by banks and other financial institutions.
Although all three are investments in fixed income, there is a difference in each of them.
Each of them has a form of issuance, taxation and risks involved.
See more and understand each of them.
CDB (Bank Deposit Certificate) is a security of fixed income issued by banks to raise funds to lend to other customers.
It is a form of lending in which you lend money to the bank in exchange for an interest rate.
Therefore, the bank undertakes to return the money with interest after a set period of time.
In addition to being a pre or post-fixed investment, the CDB also has different terms and interest rates.
Likewise, the CDB is always linked to some index, such as the Selic rate, for example.
The LCI (Real Estate Credit Letter) is a security of fixed income issued by financial institutions to raise funds to finance the real estate sector.
Like the CDB, it is a form of loan in which you lend money to the financial institution in exchange for an interest rate.
In turn, the money raised with the LCI is used to finance real estate projects.
Therefore, there is an exemption from income tax for individuals.
Finally, the LCA (Agribusiness Credit Letter) is a security of income fixed issued by financial institutions seeking resources for the agricultural sector.
Like LCI, it is a form of loan in which you lend money to the financial institution in exchange for an interest rate.
The LCA finances projects in the agricultural sector.
In addition, there is also an exemption from income tax for individuals.
What is the difference between them?
In summary, the main difference between CDB, LCI and LCA is the destination of the resources raised and taxation.
Banks can issue CDBs for various purposes. LCIs and LCAs have specific purposes and are exempt from income tax for individuals.
It is important to evaluate the characteristics of each investment before deciding where to invest your money, including term, interest rate, liquidity and risk.
So, did you already know this difference?
Thank you for following the Digital Insurance!