The income of R$20,000 per month at Nubank depends on some factors:

1. Account type:

• Current account: The Nubank current account does not earn interest.
• NuAccount: NuConta yields 100% of the CDI, which is currently (03/27/2024) at 10.75 % per year . Therefore, the yield is 0.855 % per month, today.

2. Application speed:

• Daily liquidity: You can redeem or invest money at any time through the Nubank app. However, investments are not automatic, meaning it is not enough to leave the money in the current account.

3. Taxes:

• Income tax: It is applied to income, with regressive rates ranging from 15% to 22.5%, depending on how long you leave it applied. Applications with redemptions under 6 months pay 22.5% and applications over 2 years the IR is 15%.
• IOF: It is levied on income if the redemption is made before 30 days, with regressive rates ranging from 96% to 0%.

Remembering that the tax is withheld at source, until the given moment.

Simulation of the Income of R$20 thousand invested in Nubank in one month

Considering R$20,000 invested in NuConta for one month, without movement, the gross income would be:

• Calculation of Gross Monthly Income of R$ 20 thousand =
• Value Applied x Monthly Income =
• R$20,000 x 0.855% = R$170.90

• Calculation of Income Tax Due =
• %IR x Gross Monthly Income of R$ 20 thousand
• 22.5% x R$170.9 = R$38.45 (redemption after 30 days)

• Calculation of Net Monthly Income of R$ 20 thousand =
• Gross Monthly Income - Income Tax Due =
• R$170.90 - R$38.45 = R$132.44 Net Monthly Income

Considerations when Investing R$20,000 in Nubank.

Remembering that the tax is charged only on income and that the tax varies according to a regressive table. The greatest tax benefit goes to the investor who leaves the allocated amount for more than 2 years, remaining at the lowest income tax rate of 15%.

Another detail is that you will need to apply , as Nubank will not remunerate the money in the current account, meaning you will need to invest the R$20,000 manually, by entering your password. Still, it is very simple to invest R$20,000 in Nubank and obtain a return of 0.855% per month.

Remember that the CDI rate can change every 40 days , depending on decisions at COPOM meetings on the basic interest rate in Brazil , the famous SELIC . Therefore, these meetings are highly anticipated and widely reported by the market. In my opinion, this rate should fall throughout 2024. I believe that, at the last COPOM meeting on December 11, the rate will be at 9.5% per year . Currently, as mentioned previously, it is at 10.75% per year.

Is it a good investment for our R$20,000 at Nubank?

In my opinion, it is an excellent option, especially for investments longer than 31 days, as they "escape" the IOF incidence. Another positive point is the excellent profitability offered : 100% of the CDI is a differentiator for Nubank, as the banks I follow generally offer something between 80% and 95% of the CDI.

Another highlight is the speed of application and redemption offered for our R$20,000 . With daily liquidity, this means that if you are in a pinch, just log into the app and on the same day you will have your money available in your account to cover whatever your emergency may be.

How much does R$20,000 earn in a month on Nubank?

As we saw, the yield is around 0.85% per month, which translates into a gross yield of R$170.90. Discounting the 22.5% income tax, we reach a net income of R$132.44.