Brazil's Tesouro Direto, the federal government's direct bond program, continues to draw interest from investors because of its low entry amounts, variety of bond types and backing from the Federal Government. Whether it is worth buying, though, depends on the investor's objective, time horizon and risk profile, according to specialists.
Before choosing a bond, investors need to understand how it works, what its features are, and in which situations each type is best suited, specialists say.
How Tesouro Direto works
Tesouro Direto is a program created by Brazil's National Treasury in partnership with B3, the Brazilian stock exchange, to give individual investors access to federal public bonds. When an investor buys a bond, they are effectively lending money to the Federal Government and later receive the amount invested plus the return set by that bond's rules.
One of the features that makes the program accessible is that investors can start with low amounts. The bonds can be used to build a reserve for future projects, save for a trip or purchase, protect savings against inflation, plan for retirement, or diversify an investment portfolio.
Redeeming a bond before its maturity date can produce a different return than the one agreed at purchase, because bond prices can fluctuate depending on market conditions. Investments can also be made digitally; at Banco Inter, Tesouro Direto is available through the bank's Super App, letting customers track and make investments from their phone.
The different types of treasury bonds
The choice of bond should mainly consider the investor's objective and time frame. The main options are:
- Tesouro Selic: tracks Brazil's benchmark Selic interest rate and is typically used for short and medium-term goals, including as part of an emergency reserve strategy.
- Tesouro Prefixado: has a fixed rate set at the time of purchase, offering more predictable returns at maturity.
- Tesouro IPCA+: combines a fixed rate with variation tied to the IPCA, Brazil's official inflation index, protecting purchasing power over time. It can suit medium and long-term goals.
- Tesouro RendA+: designed with retirement planning in mind, providing monthly payments over a set period after an accumulation phase.
- Tesouro Educa+: aimed at education-related expenses, turning the investment into a source of payments during a defined period.
Advantages of investing in Tesouro Direto
The program combines features that can be useful for beginners and for investors looking to diversify. Among the main points are accessibility, since it allows entry with relatively low amounts; security, as the bonds are issued by the Federal Government and considered low credit-risk investments; and diversification, since bonds come with different forms of return and maturities.
Other advantages include liquidity, since bonds can be sold before maturity, though the market price at the time of redemption can affect the return; inflation protection through IPCA-linked bonds; and the ease of operating entirely through digital, authorized institutions.
Specialists caution that security does not mean the total absence of risk. Investors need to understand the rules of the bond they choose and avoid basing decisions solely on the return shown at any given moment.
When it pays to invest
Tesouro Direto can appeal to investors seeking fixed income, security, accessibility and a way to diversify their investments, but the decision should start from the financial goal rather than simply comparing rates. Points to watch include early sale, since bond prices can move before maturity and change the return from what was originally contracted; taxes, since income tax applies under the rules for fixed income and, in some situations, the IOF financial transactions tax; the time frame, since the more distant the goal, the more important it becomes to choose a bond that matches that horizon; and risk profile, since even within fixed income, bonds behave differently.
Common questions about Tesouro Direto
Is Tesouro Direto safe? It is considered one of the lowest credit-risk options in the Brazilian market because the bonds are issued by the Federal Government. That does not mean every bond behaves the same way in price before maturity.
Can you lose money? Yes, particularly if an investor sells certain bonds before maturity during an unfavorable moment in the market. So-called mark-to-market pricing can change the sale price.
Which Tesouro Direto bond is best for beginners? It depends on the goal. Tesouro Selic tends to be an option for those who prioritize liquidity and lower sensitivity to price swings, but the choice should still weigh the time frame and purpose of the money.
Does Tesouro Direto yield more than a savings account? Returns depend on the bond chosen and on economic conditions, so it is not accurate to say every bond will always outperform savings accounts.
Can you invest small amounts? Yes. One of the program's defining features is that it allows applications with accessible amounts, making it easier for new investors to enter fixed income.
Can you redeem Tesouro Direto before maturity? It is possible to sell a bond early, but the amount received will depend on market conditions at that moment, so the result can differ from the return originally projected.
