Post-Fixed Rate Bonds: What They Are, How They Work, and Whether They're Worth Investing In

Post-Fixed Bonds: What They Are, How They Work, and If They're Worth It

Introduction

Investing in post-fixed bonds can be a great choice for those seeking both security and returns that adjust to market conditions. This type of investment is directly linked to a benchmark index such as the Selic rate or the IPCA, ensuring that your earnings reflect the performance of the broader economy.

In this article, we’ll explore what post-fixed bonds are, how they work, their advantages and disadvantages, and share tips on how to choose the best ones. If you're looking to diversify your portfolio and shield your money from inflation or market volatility, keep reading!

What Are Post-Fixed Bonds?

Post-fixed bonds are fixed-income investments whose returns are tied to an economic index. This means the investor only knows their actual earnings at the time of redemption, as returns fluctuate in accordance with the benchmark rate over time.

The main indexes used in post-fixed bonds include: ✔ CDI (Interbank Deposit Certificate) – the rate banks use to lend money to each other. ✔ Selic Rate – the base interest rate of the Brazilian economy. ✔ IPCA (Extended Consumer Price Index) – Brazil's official inflation index.

Unlike pre-fixed bonds, which have a fixed rate determined at the time of investment, and hybrid bonds, which combine a fixed rate with inflation indexing, post-fixed bonds have variable returns.

Example: How It Works

If an investor puts money into a CDB (Bank Deposit Certificate) that pays 100% of the CDI, it means the returns will follow the CDI rate throughout the investment period. If the CDI rises, the earnings increase; if it falls, the earnings drop.

Main Types of Post-Fixed Bonds

Post-fixed bonds are available in various formats. Here are the most common ones:

1. Tesouro Selic (Selic Treasury Bonds)

Tesouro Selic is a government bond issued by the Brazilian federal government, and its return is linked to the Selic rate. It’s a safe and highly liquid investment, perfect for conservative investors or for building an emergency fund.

✅ Advantages: ✔ Backed by the federal government ✔ Daily liquidity – can be withdrawn at any time ✔ Yields better than savings accounts

🚫 Disadvantages: ❌ Some brokers may charge fees (though many offer zero-fee options) ❌ Lower returns when the Selic rate drops

2. Post-Fixed CDBs

CDBs are issued by banks to raise capital from investors. They usually offer returns pegged to the CDI, with rates ranging from 80% to 120% of the CDI, depending on the issuer and maturity.

✅ Advantages: ✔ Options with daily liquidity and fixed maturity ✔ Covered by the Credit Guarantee Fund (FGC) for up to R$250,000 per institution

🚫 Disadvantages: ❌ Returns may be lower depending on the issuing bank ❌ Subject to income tax on a regressive scale

3. Post-Fixed LCIs and LCAs

LCIs (Real Estate Credit Bills) and LCAs (Agribusiness Credit Bills) are fixed-income instruments exempt from income tax for individuals. Many offer post-fixed returns tied to CDI or Selic.

✅ Advantages: ✔ Tax exemption for individuals ✔ Covered by the Credit Guarantee Fund (FGC) ✔ CDI-linked yields, often outperforming Tesouro Selic

🚫 Disadvantages: ❌ Typically require a lock-in period ❌ Not always available with daily liquidity

4. Post-Fixed Debentures

Debentures are debt securities issued by companies. Some offer post-fixed returns, generally linked to the CDI.

✅ Advantages: ✔ Higher returns than many CDBs and government bonds ✔ Some are tax-exempt (incentivized debentures)

🚫 Disadvantages: ❌ Credit risk – if the issuer defaults, you may lose money ❌ Limited liquidity – may be difficult to sell before maturity

Pros and Cons of Post-Fixed Bonds

Pros: ✅ Protection against market swings – earnings follow economic shifts ✅ Security – Tesouro Selic and FGC-covered CDBs carry low risk ✅ Tax-free options – LCIs, LCAs, and some debentures are tax-exempt ✅ Accessibility – investments start as low as R$30 (Tesouro Selic)

Cons: 🚫 Uncertain returns – you won’t know your final earnings upfront 🚫 Taxation – CDBs and Tesouro Selic are subject to income tax on a regressive scale (22.5% down to 15%) 🚫 Limited liquidity – LCIs, LCAs, and debentures may have long lock-in periods

How to Choose the Best Post-Fixed Bond for Your Needs

When selecting a post-fixed investment, keep these factors in mind:

1️⃣ Investment goal: For emergency savings, opt for Tesouro Selic or daily liquidity CDBs. For long-term goals, higher-yield CDBs or LCIs may be better.

2️⃣ Liquidity: Need quick access to your money? Stick with investments that offer daily liquidity.

3️⃣ Returns: Compare CDI percentages to assess attractiveness.

4️⃣ Risk: Choose reputable institutions. Avoid low-rated banks or companies.

5️⃣ Taxation: Want to avoid income tax? Look into LCIs, LCAs, or incentivized debentures.

Conclusion: Are Post-Fixed Bonds Worth It?

Post-fixed bonds are a solid option for investors who want a balance of safety, market-adjusted returns, and portfolio diversification. They are suitable for both emergency savings and medium- to long-term goals.

If you’re seeking liquidity and security, Tesouro Selic and reputable CDBs are excellent choices. For tax-free income, LCIs and LCAs are attractive alternatives. And if you’re open to higher risk for higher potential gains, post-fixed debentures can deliver better returns.

Now that you understand how post-fixed bonds work, share this article and help more people invest smarter!