poupança

Poupança is a term used in Portuguese to refer to saving in general and to a specific savings account offered by banks. The word comes from poupar, meaning to spare or economize. In everyday use across Portuguese-speaking countries, poupança denotes money that has been set aside for future use.

In Brazil, poupança also designates a widely used bank savings account that is considered a low‑risk savings vehicle. The product is regulated by the Central Bank of Brazil and offered by nearly all banks and financial institutions. It is intended to provide simple, accessible savings with predictable rules.

The account is typically remunerated monthly according to a regulated formula linked to the Taxa Referencial (TR) and, depending on macroeconomic conditions, to the Selic rate. It is highly liquid and designed for on‑demand withdrawals. The principal safety is reinforced by the Fundo Garantidor de Créditos (FGC), which covers up to 250,000 reais per depositor per financial institution.

Tax treatment in Brazil distinguishes poupança from many other investments: earnings on poupança are exempt from income tax for individuals. This, along with simplicity and liquidity, helps explain its popularity as an emergency fund or entry point for savers.

Critics note that poupança often yields returns that lag inflation over longer horizons, prompting savers to consider alternatives such as fixed income funds, government bonds (Tesouro Direto), or diversified investments. Still, poupança remains a standard, low‑risk savings instrument in Brazil, supervised by the Central Bank and widely used to promote financial inclusion.