LCI/LCA vs CDB with the Income Tax Table
Compares tax-free LCI/LCA gross rate with equivalent CDB for the same tenor — investment decision.
CDB equivalente à LCI: — % a.a. (bruto)
CDB líquido (após IR): — % a.a.
Decisão: —
LCI/LCA vs CDB: comparing tax-exempt and taxable fixed income
LCI (Letra de Crédito Imobiliário) and LCA (Letra de Crédito do Agronegócio) are Brazilian fixed-income securities issued by banks to fund real-estate and agribusiness credit. Their key advantage for individuals (PF) is full exemption from income tax (IR), while CDBs (Certificados de Depósito Bancário) suffer regressive IR ranging from 22.5% (up to 180 days) to 15% (over 720 days). To compare apples to apples, convert the CDB gross yield to its net equivalent: CDB_net = CDB_gross × (1 − IR), or find the LCI-equivalent gross CDB rate: CDB_eq = LCI_rate / (1 − IR).
In practice, LCI/LCA typically pay between 80% and 95% of CDI, while CDBs from medium banks pay 100–120% CDI. After-tax math often favors LCI/LCA for shorter horizons (where CDB IR is highest) and tightens for longer ones. Both are protected by the FGC (Fundo Garantidor de Créditos) up to R$ 250,000 per CPF per institution. LCI has a minimum lock-up of 90 days by regulation; LCA used to require 9 months but was reduced.
Applications
Use this comparison whenever you face a buy-or-not decision between an LCI/LCA offer and a CDB: emergency reserves with 1–2 year horizons, short-term parking of cash before a planned purchase, or laddered portfolios mixing taxable and tax-exempt notes to optimize after-tax return. Banks frequently advertise “95% CDI” LCI products that beat “110% CDI” CDBs once IR is subtracted.
FAQ
Is the IR exemption permanent? The exemption is granted by federal law and applies to individuals only; legal entities (PJ) pay IR on LCI/LCA. There have been recurring legislative proposals to remove the benefit, but as of today it still applies.
Can I withdraw early? LCI/LCA typically have no daily liquidity and you must hold to maturity (or to the lock-up date plus secondary market sale, which often means a discount). CDBs may offer daily liquidity at a lower rate. Match the instrument to your real cash-flow needs.
Does the FGC really pay? Yes, historically the FGC has paid claims within weeks of bank failures, up to the R$ 250k limit per CPF per institution (with a global cap of R$ 1 million per CPF over 4 years). Diversify across institutions for larger amounts.
Related Tools
LCI/LCA vs Equivalent CDB
Shows the gross CDB rate needed to match a tax-free LCI/LCA yield.
LCI/LCA Calculator (no IR)
Simulate LCI (real estate) or LCA (agribusiness): % of CDI, term. Since IR-exempt, net = gross. Compares to equivalent CDB.
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CDB Regressive Income Tax Yield Calculator
Computes net yield of a Brazilian post-fixed CDB applying the regressive IR table (22.5 down to 15%) based on holding period in days.
Injection Capacity (PS Equivalent)
Convert a machine's nominal injection capacity (always specified in polystyrene, PS, density ~1.05) to the equivalent capacity in another material by multiplying by the density ratio. Since the barrel has a fixed volume, the mass it injects changes with the plastic's density — denser materials yield more grams per shot. Essential to size the machine for the real material. Enter the nominal PS capacity and the material density.
CDB Net Redemption (IOF + Tax)
Calculate how much you get back when redeeming a CDB, after the IOF (redemption under 30 days) and the regressive income tax based on the holding period.
The results provided by this tool are for general informational and educational purposes only and do not constitute professional, financial, medical, legal, tax or accounting advice. Always confirm important decisions with a qualified professional and official sources.