How Income Works in Spaces (with Modo N and All)
Spaces is a mix of organization, yields and money control in the same place. And knowing how to use all its resources helps with your fincare
January 26, 2023
Redação N26
What do you know about Spaces income? There are people who get confused when they start thinking about organizing money with Spaces, using Modo N and keeping fincare up to date and don't know where income comes into it. It's alright, Spaces has it all together right there - that's why it's awesome - but don't get confused.
To help, let's talk about this income - and see how you can track it in the app.
What is and how Spaces income works
When you put money in a space, it doesn't just stay there losing value. The next business day that money starts to yeld. This is what we call Spaces income.
It's very simple to understand: if you have R$ 35 or more (approximately) in any Space, it will already start yielding 100% of the CDI. And that's all.
What is CDI
CDI stands in Portuguese for Interbank Deposit Certificate. It's a daily average of interest rates on loans from all banks, calculated for when one bank needs to borrow money from another. It influences different types of income, worth more or less 12% or 13% a year. That's why the minimum amount for income in Spaces is R$ 35 - if it were less than that, the CDI percentage would be less than 1 cent.
Why only pay on business days?
Precisely because it is a certificate issued by banks. As they only work on business days, the income accompanies the working hours.
Is there a fee?
Yes. We deduct 22.5% of Income Tax (IRRF) on top of that 100% of the CDI. But we don't charge IOF.
Where Modo N comes into this
With Modo N, that 100% CDI can add up to a 200% yeld on Spaces. For every R$100 spent on the N26 Card, you add 1% to the CDI rate for the following month. We explain all of this here in this text.
But it's worth remembering: the maximum amount to which Modo N can be applied is R$ 10,000 placed in Spaces. Any amount above that will yield the default of 100% of the CDI every business day, okay?
If you want to know how much your Spaces money will do for what you spend on the N26 Card, our Mode N calculator can help.
How to see Spaces and Modo N in the app
If you log into your N26 app now, you'll be able to see all of this in an easier way than what's explained here. In the Spaces menu, you choose any of your spaces, enter and, below the current balance, you will see how much % of the CDI it is yielding. And, in the same box, the sum of income for the month.
If you scroll down on the space timeline, you will see other valuable information. The day's yield appears with two dates: the reference date on which the balance was calculated and the date of entry of this value in Space.
To understand: the income that fell on 01/24, for example, was calculated on the balance of 01/23, so it will appear on the timeline as 01/23 (the reference date).
This makes it easier to track your Modo N working, but also retroactive releases, corrections, values and everything else. Easy, right?
