How does NuConta work? What services does it offer?

The NuConta is the free digital account Nubank. It yields 100% of the CDI and has daily liquidity, that is: the money can be withdrawn at any time. But like other digital banking products , it raises some doubts.

Is NuConta worth it? Is it a good investment? What is NuConta’s performance? How does it work? Is Nubank a trustworthy institution? Is it at risk of breaking?

Many people ask my opinion about this. As Magnetis is an investment fintech (and also because of the Fintech Challenge ), I decided to take the test.

(For those who don’t know, the Fintech Challenge is a series of content in which I test fintech services from various areas).

With the help of our designer, Lucas Cardozo, and our editor, Malena Oliveira, I tried to resolve some very complex issues that came up along the way.

To give you an idea, we consulted the Central Bank, an economist specializing in the banking sector, and Nubank itself.

In the end, we summarize here the main questions and answers about NuConta . From now on, you will know:

  1. What is NuConta? Is it a checking account?
  2. How does NuConta work? How to transfer and withdraw money?
  3. Is NuConta a type of investment? Do you have FGC?
  4. How much does NuConta earn? See a simulation!
  5. What is the difference between NuConta and CBD?
  6. What is the difference between savings and NuConta?
  7. Is it worth activating the NuConta RDB?
  8. Can I use NuConta for emergency booking?
  9. I have NuAccount. Do I need to declare income tax?
  10. Conclusion: is NuConta worth it?

Contents hide ]

  • 1Acquisition of Easynvest by Nubank
  • 21 – What is NuBank’s NuConta?
    • 11.1 – Is NuConta a checking account?
  • 32 – How does NuConta work? What services does it offer?
    • 12.1 – How to open a NuConta
    • 22.2 – How to transfer money to NuConta?
    • 32.3 – How to withdraw money from NuConta?
  • 43 – Is NuConta a type of investment?
    • 13.1 – Does NuConta have FGC? Is it safe to leave money on it?
  • 54 – How much does NuConta earn?
    • 14.1 – Investment simulation: how much does R$ 10 thousand yield at NuConta?
  • 65 – What is the difference between investing in NuConta and investing in CDB?
    • 15.1 – List of institutions that offer CDBs with daily liquidity:
    • 25.2 – Income from NuConta in 2018
    • 35.3 – Yield of a daily liquidity CDB in 2018
  • 76 – NuConta or savings: what’s the difference?
  • 87 – NuConta’s RDB: when is it worth activating?
  • 98 – Using NuConta for emergency booking
  • 109 – I have NuConta: do I need to declare IR?
  • 1110 – Conclusion: is NuConta worth it?
  • 12How to invest in a digital management company?

Acquisition of Easynvest by Nubank

The purchase of Easynvest by Nubank was confirmed on Friday, 11/09/2020, representing a big step for the largest digital bank in the country.

The roxinho founded in 2013 by Vélez, the Brazilian Cristina Junqueira and the American Edward Wible, now bets on the investment market in partnership with one of the largest independent brokers in the market.

The acquisition was made mostly through share swaps, in which Easynvest’s shareholders received a portion of Nubank’s assets and the rest of the amount will be paid in cash.

Magnetis has been in partnership with Easynvest since 2015. Through the integration between the two platforms, we purchase and sell assets in your portfolio, such as Magnetis funds and bonds.

The agreement between Nubank and Easynvest does not change the contract Magnetis already has with the broker Easynvest. The acquisition of Easy by Nubank will also need to be approved by the responsible regulatory bodies, such as the Central Bank and Cade (Administrative Council for Economic Defense). This year, Magnetis announced that it will launch its own DTVM to operationalize its customers’ applications in the near future.

1 – What is NuBank’s NuConta?

NuConta is a low risk fixed income application . Unlike a checking account, it is a payment account . Thus, it has some limitations, as we will see later.

NuConta’s invested money is invested in federal government bonds or private bonds issued by Nubank itself.

These bonds are RDBs , a type of investment similar to the CDB. We’ll also talk about this later.

Anyone can have a NuConta. Just make the request to Nubank and wait for the release. No invitation or credit approval is required.

(NuConta screen inside the Nubank app)

1.1 – Is NuConta a checking account?

No. NuConta is a payment account and has different characteristics from the traditional current account.

Nubank cannot mix money from customer deposits with its own resources, even if such money is not invested on behalf of those customers.

This money also cannot be used to pay the institution’s debts in the event of bankruptcy, nor can it be frozen by any legal action , according to the Central Bank .

See more: C6 Bank: everything you wanted to know about the bank

Nubank was not yet a bank at the time of the launch of NuConta.

Only in January 2018 a decree by the Presidency of the Republic allowed it to cease being a payment institution and become a financial institution: NuFinanceira.

However, NuConta remains a payment account, even with the launch of the debit function. For now, Nubank has no plans to change the nature of the account.

The main difference is that, unlike a bank, a payment institution cannot lend and operate a traditional checking account . Can only offer payment accounts.

According to the Central Bank, these accounts can be:

  • prepaid: the customer deposits the money to use in future payments (incidentally, this is the purpose of NuConta);
  • Postpaid: The customer uses a pre-approved limit and pays the bill later. This is how credit cards work in general.

2 – How does NuConta work? What services does it offer?

NuConta was launched by Nubank in October 2017. Over time, it gained more functions and now allows:

  • bill payment;
  • receiving salary;
  • debit function;
  • save money: allows you to set aside an amount that is not affected when the person pays bills or withdraws some value;
  • personal loan at rates between 2% and 5% per month;
  • withdrawal from the cashier (it is available on the Banco 24 Horas network, but each operation costs R$ 6.50 ).

NuConta’s aim is to be a good tool for day-to-day payments, including Nubank credit card billing.

For this reason, it is an interesting option to build an emergency reserve : that money you keep to use in case of any unforeseen event or opportunity.

See more: Is Banco Inter worth it? We test the digital account. Check out!

2.1 – How to open a NuConta

In November 2017, when this post was written, NuConta was gradually being released to Nubank customers.

Today, anyone can open a NuConta , even if they don’t have a purple credit card.

To open the account, it is necessary to download the Nubank application. Then, just make a registration and follow the step by step.

Ready! In a few moments, your NuConta will be up and running.

  • NuConta opening screen
  • NuConta before the first transfer
  • Personal data for transfer

2.2 – How to transfer money to NuConta?

There are two ways to send money to NuConta:

  • electronic transfer (TED): each banking institution has its policy, but there are banks that offer free TEDs ;
  • deposit by bank slip: just generate a slip with the amount you want to deposit and pay at any bank or lottery house.

Tip: Transfers between accounts that are registered in your name (same ownership) are generally free. But it’s always worth checking what your bank’s policy is. By the way, here’s a list of options for making a free TED .

2.3 – How to withdraw money from NuConta?

Nubank does not have physical branches. Thus, the only two ways to withdraw money from NuConta are:

  • Transfer between accounts: You can send the amount you want to withdraw to another account and then withdraw the money at an ATM. The advantage of this procedure is that NuConta offers free money transfer;
  • Withdrawal in the Banco 24h network: this type of withdrawal is the most recent and the most expensive. If you need to use the network, there is a fee of R$ 6.50 that applies to each withdrawal, regardless of the amount.

3 – Is NuConta a type of investment?

As we already mentioned, NuConta is a low risk investment . The main features of these applications are:

  • backed by public or private bonds: in practice, this means that the investment money is invested in government bonds or in investments guaranteed by the FGC , the Credit Guarantee Fund;
  • yield guided by Selic: precisely because they invest in these types of papers, these investments usually have a yield very close to the country’s basic interest rate and are influenced every time that rate rises or falls.

In the beginning, all the money invested in NuConta was backed by federal government bonds. These bonds are different from Tesouro Direto , as they cannot be purchased by individuals.

Thus, the oldest investments in NuConta are not registered in the person’s name.

Below, we will see more details about this issue and about the alternative that Nubank offers to its customers.

See more: 5 things they haven’t told you yet about digital banks

3.1 – Does NuConta have FGC? Is it safe to leave money on it?

As we have already mentioned, the oldest applications in NuConta are not registered in the person’s name and, therefore, are not covered by the FGC.

However, being a payment account, NuConta offers some protection.

This is because the money invested in it cannot be mixed with Nubank’s assets and cannot be subject to judicial blocking.

To recap: the FGC is a private fund formed by banks and other financial institutions. Its role is to guarantee the return of people’s money in the event of bankruptcy or interdiction of these institutions. There is a return limit of up to R$250 thousand per institution and R$1 million per CPF. This amount considers current account deposits, financial investments and their income.

However, as of 2019, Nubank began to offer an alternative for those seeking investment security. Now, the FinTech can issue RDBs and invest the money NuConta these applications.

Explaining: RDB is a fixed income application similar to CDB . It has the same mechanics and the same warranties as the CBD offers. Thus, the RDB also has the protection of the FGC.

Why did Nubank choose this path? The point is that, from a legal point of view, fintech is still not considered a bank, but a finance company.

In practice, this implies some restrictions on the types of investment and loan that Nubank can offer. That’s why it cannot issue CDBs.

Now, all new applications made in NuConta are automatically invested in Nubank’s RDB.

If you already had money invested there, it is also possible to migrate to RDB. The step by step is as follows:

  • access the Nubank app;
  • click on my superior next to your name;
  • go to “Configure NuConta”;
  • click on “Deposit Options”;
  • click “I want to Activate” to turn on the RDB function.

From there, all your new deposits will be made in NuConta’s RDB .

The amounts deposited before will not be affected . They will continue to be invested in government bonds until you decide to redeem them.

  • Nubank General Settings
  • NuConta Settings
  • NuConta RDB Activation

4 – How much does NuConta earn?

The yield of NuConta today is 100% of CDI. But what does this mean in practice?

The CDI is currently at 4.90% per year . Therefore, an investment that pays 100% of the CDI delivers the full amount of this fee.

However, as with most fixed income investments, NuConta’s income is also subject to Income Tax (IR) and Financial Transactions Tax (IOF).

Thus, it is also necessary to consider taxes to calculate NuConta’s income . But do not worry! We’ve already done this calculation for you.

4.1 – Investment simulation: how much does R$ 10 thousand yield at NuConta?

Imagine that a person has deposited R$ 10 thousand in different financial investments. What happens after a year?

To make these calculations, we used the 4.5% projection for the Selic accumulated in 12 months, based on the Secondary Market of Government Bonds report , by Anbima.

Simulation parameters:

  • Amount applied: BRL 10 thousand
  • Term: 1 year
  • Income Tax: 17.5%
  • Accumulated Selic: 4.5% in the year

The result of the calculations can be seen in the chart below, compared to other applications:

Some important information: the result of the investment in the Selic Treasury is already net of the custody rate of 0.25% per annum on the total value of the bonds (capital + earnings).

This fee is charged by the stock exchange to register and hold the securities in the name of the investor, even if your brokerage has a  zero fee on investments .

For this reason, you will notice that the yield of NuConta is higher than that of the Treasury Selic . The absence of the custody fee makes the profitability higher.

Another important point: NuConta’s yield is also equal to that of a CDB that promises 100% profitability of the CDI in the same period.

On the other hand, a CDB that pays from 101% of the CDI already surpasses the final result of NuConta , even after the payment of income tax.

It is worth remembering that a CDB with a yield above the CDI usually has less liquidity , that is, it cannot be redeemed at any time.

Therefore, this type of investment is not suitable for those who need to withdraw money frequently.

  • NuConta balance after the first transfer
  • NuConta’s detailed yield
  • Detailed position of NuConta

5 – What is the difference between investing in NuConta and investing in CDB?

As we already mentioned, NuConta is a low-risk application that offers daily liquidity . So what’s the difference between NuConta and CBD?

As a reminder, CDB is a type of fixed income investment whose profitability is usually linked to the CDI (the main benchmark of safe investments).

There are types of CDB that can only be redeemed on maturity. So, so that there is no damage, it is necessary to keep the application until the end.

On the other hand, there are the so-called  daily liquidity CDBs : investments that can be redeemed at any time.

5.1 – List of institutions that offer CDBs with daily liquidity:

The more flexibility an investment offers, the less it tends to pay off.

However, it is recommended that this investment has a return of at least 100% of the CDI .

See in the table below which banks and brokers offer CDBs with daily liquidity and check the conditions for minimum investment and profitability:

Bank/Broker Minimum value Performance
Agibank (via Nova Futura brokerage) BRL 1 thousand 95% of CDI
BMG Bank BRL 1 thousand 101% of CDI
BS2 Bank (via XP Investimentos): BRL 1 thousand 101% of CDI
Daycoval Bank BRL 1 thousand 101% of CDI
Banco Indusval (via Guide Investimentos) BRL 3 thousand 101% of CDI
Interbank BRL 100 100% of CDI
Maximum Bank (via Nova Futura) BRL 500 98% of CDI
Neon Bank BRL 1 100% of CDI
Banco Pan (via Toro Investimentos) BRL 500 100% of CDI
Paraná Bank BRL 1 thousand 98% of CDI
Pine Bank BRL 1 thousand 103.5% of CDI
Banco Renner (via Toro Investimentos) BRL 1 thousand 102% of CDI
RCI Brazil Bank BRL 100 102% of CDI
Brasil Plural (via Genial Investimentos) BRL 1 thousand 99% of CDI
Crefisa (via Terra Investimentos) BRL 5 thousand 99.5% of CDI
Direct Sophisa BRL 1 100% of CDI

5.2 – Income from NuConta in 2018

In 2018,  the yield of NuConta was 6.39% . Thus, by investing R$1,000 in NuConta in January, we reached the end of the year with a gross income of R$1,063.95. However, discounting the income tax for the period (17.5%), the profitability was like this:

Investment in NuConta : R$ 1 thousand

Gross income accumulated in 2018: BRL 63.95

IR (17.5%): BRL 11.19

Final value: BRL 1,052.76

(Source: NuConta/Nubank)

5.3 – Yield of a daily liquidity CDB in 2018

As already mentioned, a good daily liquidity CDB currently offers a return of 100% of the CDI. This means, then, that this CDB fully replicates the CDI profitability.

Since the CDI ended 2018 at 6.39%, the yield of this daily liquidity CDB was

Investment in a CDB that yields 100% of CD I : R$ 1 thousand

Gross income accumulated in 2018: BRL 63.95

IR (17.5%): BRL 11.19

Final value: BRL 1,052.76

(Source: DI/B3 Calculator)

In practice, the yield of NuConta is equal to that of a CDB with a yield of 100% of the CDI .

The only difference is that  the NuConta balance is already shown net of taxes , while most CDBs show the gross return on investment to make the comparison with the CDI easier.

On the same screen, it is possible to predict how much the amount deposited in NuConta will have yielded in a given month.

Ready! When the transfer is received, the money is already yielding. It is worth remembering that the income from NuConta – and also from other financial investments – is accounted for on a daily basis.

The only exception is savings. Your income is incorporated every 30 calendar days, on the so-called anniversary of savings .

This date starts counting from the opening of the account and usually appears on the bank statement or internet banking .

6 – NuConta or savings: what’s the difference?

The main difference between savings and NuConta is the way in which the interest on each application is accounted for. In the case of the passbook, the return is monthly, while in NuConta the income is daily.

Another important detail: according to the Central Bank, savings income is calculated on the smallest balance of each period, counting from the anniversary.

Thus, unlike savings, the income of NuConta starts to appear from the second day of the application .

It is worth remembering, however, that withdrawing money from financial investments in a period shorter than 30 days has an extra cost: the regressive IOF .

This tax is levied only on the profit of investments and can consume up to 99% of the income of an investment. The IOF is reset when the investment completes one month.

7 – NuConta’s RDB: when is it worth activating?

In June 2019, Nubank launched a new function for NuConta: the possibility to invest money in RDB, a fixed income investment guaranteed by the FGC up to R$ 250,000.

According to Nubank itself, NuConta’s income remains the same in both cases , whether investing in government bonds or investing in RDB. But you will see in the post that this could change in the future.

For the time being, the RDB at NuConta has a return of 100% of the CDI (that is, 6.4% per year). To activate it, just configure your account as explained in the following post.

Check out the full post: NuConta’s RDB is worth it? Ask your questions!

But is it worth switching to NuConta’s RDB? In a simple and direct way, as long as this RDB continues to offer a return of 100% of the CDI, what is most worthwhile is keeping the investment in government bonds.

As you may already know, government bonds are the safest fixed income investments on the market.

Although they are not registered in the name of those who invest in NuConta, the money cannot be mixed with Nubank’s equity.

In the case of investment in RDB , Nubank can use the money to finance its activities. This, in theory, increases the risk for those who are investing and should have a slightly higher return than government bonds . This is the factor that would make the application worthwhile.

8 – Using NuConta for emergency booking

According to Nubank, the idea is that NuConta eliminates the complexity of financial applications and is a way of “making an investment decision for the client”.

Here, it is worth noting that this mechanism can help a lot people who do not have much knowledge on the subject or do not know where to invest.

NuConta could be used, for example, to  manage the month’s money or to maintain an emergency reserve , which is important in case of something unforeseen.

In other countries, such as the United States and the United Kingdom, this type of account has been around for a long time and is called Savings Account .

However, for investments with a focus on longer terms (eg: buying a house, traveling in two years, retirement), there are other financial products on the market that offer the possibility of higher returns .

For these medium or long term demands, the solution we offer at Magnetis is ideal, as we work with diversified investments and low cost.

9 – I have NuConta: do I need to declare IR?

A very common question for those who decided to leave their money at NuConta is: do I need to file the annual income tax adjustment statement?

The answer is: it depends.

If you didn’t declare IR before having NuConta, you only need to do so if you are in any of the situations that make the declaration mandatory . In 2019, they are:

  • Received income from a legal entity (including his salary) in an amount greater than R$28,559.70;
  • Received income from financial investments subject to taxation;
  • It had a profit of over R$ 40 thousand with tax-exempt financial investments (savings is one of them);
  • It has properties worth more than R$300 thousand.

For those who have already declared IR, nothing changes. All you have to do is request your Income Report to Nubank and include the data in your return.

See more: How to declare NuConta in Income Tax? Check out a complete guide!

10 – Conclusion: is NuConta worth it?

NuConta can be a good option for your emergency reservation or for managing monthly expenses. However, there are better alternatives for those who can leave the money invested for longer .

If you are building your wealth, we always recommend building a well diversified investment portfolio tailored to your goals . This is the best way to increase your return, keeping the risk appropriate to your profile.

Here at Magnetis, for example, we work with diversification of investments and options for different profiles (from the most conservative to the most daring). We always consider our clients’ medium and long term goals.

As we build diversified portfolios, they end up being more resistant to changes in the economy and more securely capturing the positive moments in the market. Thus, the best result appears in the long run. Do you want to take the test? Make your own simulation here .

by Abdullah Sam
I’m a teacher, researcher and writer. I write about study subjects to improve the learning of college and university students. I write top Quality study notes Mostly, Tech, Games, Education, And Solutions/Tips and Tricks. I am a person who helps students to acquire knowledge, competence or virtue.

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