To comment on the capitalization bond, we must define what is a financial investment and, in turn, a well Financial investiment. Understanding what a financial investment is is very easy, it's about investing money in something with the expectation that later this money will be obtained with a larger amount than invested initially.
Therefore, we can think that a good financial investment is one that, stipulated a period of be applied, yields an amount greater than simple investments (such as savings).
We must pay attention to the very easy proposals that banks make regarding capitalization bonds. Many make promises of something profitable and guaranteed, but be careful, there are several factors between the lines. There is a very large discrepancy between what is offered and the real situation that is described in the capitalization bond contract.
Clearly, the savings bond is a mandatory way to save a certain amount of money per month, after all you make a commitment under an agreement that during a certain period you will make this investment and only after the grace period will you withdraw the cash.
As for this grace period, if you decide to withdraw what was invested, depending on the contract, you will have to pay a fine previously imposed in the contract, that is, everything you had invested until a certain time, will return to your hands with a good amount. smaller.
Knowing all these impasses, and others that were not mentioned, you should think: “Wow, with all these risks, the final yield has to be very good to make up for all this... but the interest rate must be high”. An optimistic thought, but it doesn't go that way: the expectations of a savings bond are similar to a bet on lottery games, because by purchasing this title you will be competing for grand prizes. However, from a mathematical perspective, we know that the probability that you will be awarded in drawings of this type is low. As for the interest rate on capitalization bonds, this does not exceed the savings rate. Taking into account the risk involved in a savings bond, we can note that between the bond and savings, the second option becomes a better investment.
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Therefore, carefully analyze any proposal made in any type of financial investment. Read the proposed contract carefully, as it can be quite different from what you were told verbally.
That is why it is important not only to understand everything that is offered to you, but also to know how to use the formulas of financial mathematics, so that there is a family financial planning. So, if you've hated math for a long time or if it's always been the "boggart", know that it can help you control and manage your finances.
If you want to know how to calculate the capitalization, go to the article Financial investments.
By Gabriel Alessandro de Oliveira
Graduated in Mathematics
Brazil School Team
Would you like to reference this text in a school or academic work? Look:
OLIVEIRA, Gabriel Alessandro de. "Is the Capitalization Bond really a good financial investment? "; Brazil School. Available in: https://brasilescola.uol.com.br/matematica/titulo-capitalizacao-fato-um-bom-investimento-financeiro.htm. Accessed on June 29, 2021.
