What is PagBank? How it works?

The PagBank is more one of the options in the world of digital banks offering free digital account and no annual fee credit card.

From now on, you will understand a little more about how the services of this branch of PagSeguro work . You will also know which services can be useful for your daily life. Read on!

Contents hide ]

  • 1What is PagBank? How it works?
  • 2How to open a PagBank account?
  • 3What is the income on the PagBank account?
    • 1Does the PagBank account have FGC?
  • 4 Is itworth investing in PagBank?

What is PagBank? How it works?

As we mentioned, PagBank is the digital account of PagSeguro, a company famous for credit card machines.

PagBank offers a digital checking account with exemption from most of the fees for daily transactions .

The account also has a prepaid card and a credit card with no annual fee.

Both the opening of the account and all the transactions are done through the bank’s mobile application. Therefore, like its competitors, PagBank does not have physical branches.

Next, we’ll see how to open an account at the institution.

How to open a PagBank account?

To use your PagBank digital account and cards, you need to download the bank application .

From there, just follow the instructions to open your account. You will need to inform:

  • Name;
  • RG;
  • CPF.

You will also need to upload photos of these documents through the app to validate your account.

The bank has a period of 4 working days to analyze your information and provide feedback on opening your account.

What is the income from the PagBank account?

One of PagBank’s slogans is “yields more than savings” . In fact, the bank’s digital account yields 100% of the CDI, which already exceeds the savings yield by 30%.

Let’s see how it works in practice: imagine that today you deposit R$100 in savings and another R$100 in the PagBank digital account.

At the end of a year, what will the yield be? See below:

  • Savings: R$ 103.50;
  • PagBank: BRL 104.10.

The slightly higher yield is because the PagBank digital account has a yield of 100% of the CDI . Savings, on the other hand, yield only 70% of that rate.

Does the PagBank account have FGC?

No. As it is a payment account, the PagBank digital account does not offer the FGC guarantee for the money deposited in it.

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.

On the other hand, payment accounts have their own protection mechanism. According to the Central Bank, all the money deposited in them can only be invested in federal government bonds.

In addition, these amounts cannot be considered as the institution’s equity in the event of bankruptcy or judicial blocking order.

Is it worth investing in PagBank?

The PagBank digital account, like NuConta , serves for everyday transactions and for saving small amounts of money.

Therefore, it is an interesting option for those who want to have their money always at hand.

However, even for those who want to make an emergency reservation , there are other options that also yield 100% of the CDI and offer the protection of the FGC.

In this sense, daily liquidity CDBs are the main examples of safe investments. Most of those offered by medium-sized banks have profitability equal to or higher than that of the PagBank account.

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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