hands of a woman holding and counting mexican banknotes of twenty pesosFrancisco Zea Lara (Getty Images)
When it comes to economics and finance, it all depends on how you look at it.
While for a large part of the population high inflation rates and rising interest rates represent greater indebtedness and less purchasing power, for savers this is one of the best times to generate returns.
This Thursday, the Governing Board of Banco de México decided to increase the reference interest rate by 50 base points to try to curb inflation, with the magical effect on the Federal Treasury Certificates (Cetes), debt instruments that it issues the Government of Mexico, which have reached historic highs in the last 20 years.
"Although the Bank of Mexico raises interest rates to combat inflation, in the end it benefits all people who want to save because they are at 20-year highs," explains Leonardo Castillo, Fintual personal finance specialist.
The returns sound very attractive.
The Cetes placed with a term of 28 days register yields of 10.82% in contrast to the 10.78% it gave in December, while the Cetes placed with a term of one year increased their yields from 11.10% in January 2022 to 11.21% in January 2023%.
And the demand has also grown.
According to an Intercam report, the market demanded 36,901 million pesos, of which 12,500 million were placed at a weighted rate of 10.82%, at the beginning of this year.
"In this instrument you can invest with very low risk, an attractive rate, at a maximum of 20 years and with the advantage that in 2023, there are many more possibilities to invest, due to digitization," says Castillo.
Easy for the less experienced
Inflation not only makes food more expensive, but also depreciates the value of the savings that are stored, say, in a piggy bank, so people who want to save can do so in other ways so that their money does not lose value and to the extent if possible, make a profit.
To invest in Cetes, in any of the terms, it can be accessed through banks or other investment companies, although they may require minimum investment amounts ranging from 5,000 to 50,000 pesos (between 260 and 2,600 dollars), depending on the conditions of each.
“In the end, an investment fund, compared to Cetes, for example, has the advantage that the returns you have in the fund are daily and with Cetes you have to wait for maturity: 28, 91, 182 or 364 days, the one you choose”, says Castillo.
In November 2010, the Government of Mexico created the Cetesdirecto platform, with which it sought to bring savings and investment closer to the population of the country and which, up to now, has been very successful, since there are no intermediaries.
The only thing the user requires is a bank account, their personal data and access directly from their mobile device or computer.
The user must invest at least 100 pesos (just over 5 dollars), choose the term and determine if they want to continue saving.
In 13 years, Cetesdirecto has managed to capture the savings of a good part of Mexicans.
While in the year of its creation they managed to invest just over 6,800 active accounts in government debt, by 2022 they have attracted 365,695 new investments and so far this year they have already added more than 96,000 new investments to accumulate 1,239,211 active contracts that the same are used to finance government projects to give returns to savers.
Of course, whenever there is a positive alternative, it is worth considering whether with the performance of one account the debt of another can be settled.
“Normally, the interest rate that a debt charges you is much higher than the interest rate that you will be able to obtain for your savings,” says Castillo.
"Taking that into account, I always recommend paying off any debts you have first and then starting to save," says the finance specialist.
subscribe here
to the EL PAÍS México
newsletter
and receive all the key information on current affairs in this country
