4 ms·
In Brazil we have "Capitalization Titles" that banks can offer to its clients. Usually you sign up with a fixed monthly fee (say R$50/month) for 1 year, and the
by EL_Loco 6y ago
In Brazil we have "Capitalization Titles" that banks can offer to its clients. Usually you sign up with a fixed monthly fee (say R$50/month) for 1 year, and the chance to win monthly or weekly sweepstakes. When the period is over, you get your money back, plus some little earnings, usually just enough to cover inflation. I'm not too familiar with it, but that's basically it. Very common here.
- adammoelis 6y agoInteresting - I haven't come across Capitalization Titles. I will definitely look into these now. Thanks for sharing
- schoen 6y agoI didn't know about this before but since I speak Portuguese I was easily able to find https://pt.wikipedia.org/wiki/T%C3%ADtulo_de_capitaliza%C3%A7%C3%A3o https://pt.wikipedia.org/wiki/T%C3%ADtulo_de_capitaliza%C3%A... That Wikipedia article is very skeptical toward this instrument. Notably, it looks like the typical implementation is like a Certificate of Deposit in the U.S., where the depositor's money is locked up for a fairly long period of time. At least one author of the Wikipedia article suggests that it would be more advantageous for depositors to use a regular interest-bearing deposit instrument. I guess that criticism doesn't address whether it's succeeding in getting some people to save who otherwise might not save at all, and might also be less applicable when the depositor doesn't have to wait a super-long time to make withdrawals.
- adammoelis 6y agoThis is interesting. Similar to us in some ways, but we don't lock up your cash. You can withdraw any time. And no fees. I'll read more about this capitalization bond concept though, since I hadn't seen it before.