Brazilian wants to withdraw FGTS to buy a house, open a business and travel

Only 3 out of 10 Brazilians would use FGTS money (Fundo de Garantia do Tempo de Serviço) to pay bills and clear their name, according to a survey by Instituto Opinion Box, commissioned by Serasa and Banco Pan. The study also reveals that the consumer wants to withdraw the values ​​to buy their own home or set up a business.

The survey aims to point out what workers know about the FGTS and how they think about using it. 2,132 Brazilians were interviewed online between the 12th and 22nd of April. Of the total, only 17% said they would pay bills with the money and 10% said they would clear their name. Most want to buy their own home or open their own business. Workers could choose more than one option.

According to the study, 45% want to buy their own home and 33% would like to open a business with the values. There were also 20% who would take care of their health and 17% would take the money to travel internationally.

The data show that although the majority know what FGTS is (92%) and 80% are aware that it is possible to check their balance, 4 out of 10 (38%) have no idea how much is currently in their account, because they do not know how to make the consultation (16%) or because they do not know the accumulated value (22%).

The FGTS is a kind of compulsory savings for workers who have a formal job. Each month, the employer deposits 8% of the salary amount in an account in the name of the professional. The accumulated amount can only be withdrawn in specific situations, such as the purchase of a home, unfair dismissal or retirement. It is not possible to use the money to travel or start a business.

Matheus Moura, marketing director at Serasa, says that the research showed that Brazilians know their right to the fund, but are unaware of many types of withdrawal. “When you ask, Brazilians know [sobre o fundo]but the best-known ways to use the FGTS are dismissal or home ownership, and they know why they must have used it for that”, he says.

With a target audience that concentrates around 70 million accounts with a balance in the Guarantee Fund and the possibility of moving R$ 80 billion in resources, companies and the government are keeping an eye on the values ​​that workers have accumulated in the fund.

This year, as a way to circumvent the effects of inflation and low worker income, the federal government released the extraordinary withdrawal of up to R$ 1,000 from the FGTS. The final batches will be released until June 15th, according to the worker’s birthday month.

For Moura, if they knew that they could use the money for loans, in the new birthday-loot modality, many would be able to deal with the growing default. Data from Serasa show that, in March, delinquency hit a record, reaching 65.69 million people in the country.

According to the Map of Default and Debt Renegotiation in Brazil, also from Serasa, the increase in March — the latest available data — was 0.81% in relation to February. The number has not reached this level since the beginning of the pandemic in April 2020.

Financial educator Cíntia Senna, from Dsop, says that workers need to be very careful when moving their FGTS amounts in any form or occasion of release so as not to get even more indebted.

“This type of loan, not just from the FGTS, would have to be a last alternative, in which I’ve already made all the changes in my consumption pattern, I’ve already negotiated terms, amounts, rates and I’ve already made portability, and this would have to be the only instance to which I could turn not only as a solution, but as a palliative,”

For her, the modality is valid, but to use it, interest works as a penalty. “You may have the possibility of anticipating the FGTS, money that is already the worker’s, however, at a cost. If you want to receive it in advance, there is a penalty”, he says.

Banks offer loan with FGTS

Established in 2019, the birthday withdrawal became a new loan from banks and credit institutions in 2020. Interest varies depending on the relationship with the institution. To hire, the worker must, first of all, adhere to this type of withdrawal at Caixa Econômica Federal, which manages the fund.

Depending on the institution, there is interest of 1.69% and installments starting at R$50. Among those offering this type of loan are Serasa and Banco PAN, which signed a partnership for the measure. As of this Tuesday (7), it will be possible to anticipate up to seven installments of the anniversary withdrawal through the Serasa eCred online platform.

André Carnevale, executive superintendent of Banco PAN, says that the new platform will offer all the support to those who want to take out this loan. “Many times the person does not arrive with the package ready”, he says. He states that the loan can be requested by those who have a minimum balance of R$ 400 in their FGTS and wish to advance up to seven installments of the birthday withdrawal. You must be over 18 years old.

Banco Mercantil do Brasil also offers the modality, with interest from 1.99%, contracted through remote channels. At Caixa Econômica Federal, hiring is also remote. Banco do Brasil offers values ​​from R$ 400.