CDB, LCI or LCA: Which Investment Yields More?
CDB (Bank Deposit Certificate), LCI (Real Estate Credit Bill) and LCA (Agribusiness Credit Bill) are three of the most popular fixed income investments in the Brazilian financial market. All are issued by banks and are covered by the FGC (Credit Guarantee Fund) up to $250,000 per institution. The main difference is in taxation and liquidity.
Use our CDB/LCI/LCA Calculator to simulate and compare the net income of the three types in the same scenario.
Comparison: CDB, LCI and LCA
| Feature | CBD | LCI | LCA |
|---|---|---|---|
| Income Tax | Yes (15% to 22.5%) | Exempt (individual) | Exempt (individual) |
| IOF | Yes (redemptions < 30 days) | No | No |
| Liquidity | May have daily liquidity | Minimum grace period of 90 days | Minimum grace period of 90 days |
| FGC Guarantee | Yes, up to $ 250k | Sim, até $ 250k | Yes, up to $250k |
| Report | Bank credit | Real estate sector | Agribusiness |
How to Compare Fairly: Equivalent Rate
Due to the exemption from Income Tax on LCIs and LCAs, a CDB with a higher rate may yield less than an LCI/LCA with a lower rate. To compare fairly, it is necessary to convert the rates to an equivalent basis.
Formula to convert exempt LCI/LCA to equivalent CDB:
Equivalent CDB Rate = LCI Rate ÷ (1 – IR Rate)
Example with a term over 2 years (IR rate of 15%):
- LCI at 95% of CDI
- CDB Equivalent = 95% ÷ (1 – 0.15) = 111.8% of CDI
This means that an LCI paying 95% of the CDI is equivalent to a CDB paying 111.8% of the CDI (net). Any CDB below this yields less than the LCI.
When is the CDB Worth More than the LCI?
CBD may be worth more when:
- Offers a much higher rate than the LCI/LCA available at the same bank.
- You need daily liquidity (many CDBs offer redemption at any time without loss).
- The term is short (less than 1 year) and the LCI/LCA requires a grace period.
Liquidity is a Decisive Factor
- LCI and LCA have a minimum legal grace period of 90 days before the first redemption. Investing today, you will not be able to redeem the funds before 3 months.
- CDBs with daily liquidity allow redemption at any time — however, those that offer this generally pay lower rates (close to 100% of the CDI or less).
Which to Choose?
- CDB: When offering a rate significantly above 100% of the CDI and you need quick liquidity.
- LCI/LCA: When the equivalent rate (excluding IR) is greater than the available CDB and you do not need the resources for at least 90 days.
Compare Yields in Practice
Do you want to know which of the three yields the most for your specific value and deadline? Access our CDB/LCI/LCA Calculator and see the net income comparison side by side!