How to Invest in Tesouro Direto: Selic, IPCA or Prefixed?

The Treasury Direct is the safest investment in Brazil (as it is guaranteed by the Federal Government itself) and is the gateway for those escaping inflation. But the platform offers three distinct types of titles. Buying the wrong title at the wrong time can make your balance go negative.

1. Selic Treasury (Emergency Reserve)

Yields exactly the basic daily interest rate. It does not suffer from aggressive “mark-to-market”. If the Selic rises, it yields more. If it falls, it yields less, but it never loses money. Ideal for: Emergency reserves and short-term cash that you may need to redeem at any time.

2. Treasury IPCA+ (Long-Term Protection)

You pay a fixed rate agreed at the time of purchase (e.g. 6%) plus the variation in inflation (IPCA) for the period. It's the only real guarantee in the financial market that your purchasing power won't be destroyed by supermarket prices 20 years in the future. Ideal for: Retirement, money to buy a house in many years. It undergoes a lot of price fluctuation before maturity.

3. Prefixed Treasury (The Betting Game)

The rate is locked and exact at the time of purchase (e.g. 12% per year). No matter what happens with Brazil, you receive 12% if you hold on until the end. If inflation explodes and goes to 15%, your bond has lost real value. If inflation drops to 3%, you've made the deal of the century by locking in 12% profits. Ideal for: Experienced investors betting on a structural drop in interest rates.

The Danger of Marking to Market

If you buy an IPCA+ or Prefixed bond that matures in 2035 and try to sell it next year, the Treasury will pay its price adjusted for the market risk of the day, which means you can sell at a loss in relation to what you paid. The golden rule is: always take IPCA and Prefixed until the due date.

To project your future interest rates considering rates, B3 rates and IR, use our Direct Treasury Simulator.