See how the FGTS anniversary advance loan works

The anticipation of the FGTS birthday withdrawal (Fundo de Garantia do Tempo de Serviço) is a type of loan offered by banks and finance companies since 2020, which uses the money that the worker has in his escrow account as collateral.

To be able to take out the loan, it is necessary to opt for the birthday withdrawal. This type of withdrawal entitles you to an annual withdrawal from the Caixa, but the worker will not be able to take the entire FGTS balance if he is fired without just cause. To carry out the anticipation, it is also necessary to allow the desired institution to view the balance.

Financial planning experts point out that, even if the rates are lower than those of other loans, they are high considering that there is no risk of the worker defaulting on the loan. Therefore, they only recommend anticipation in case of extreme need.

How much do banks charge to advance the FGTS?

Check other bank conditions for the loan:

Pan Bank

For the advance payment at Banco Pan, it is necessary to have a FGTS balance above R$ 400 and advance at least R$ 300. More information is available on the Banco Pan website.

C6

Rates vary between 1.55% and 2.04% per month. Further information can be found on the website.

BMG Bank

In addition to having a balance in the FGTS accounts, it is necessary to have a regular CPF with the Federal Revenue, prove age and civil capacity, in addition to other security requirements. The website has more information.

Cashier

• The minimum total loan amount is BRL 500
• The amount of each withdrawal to be advanced must be equal to or greater than BRL 200

It’s needed:

• be over 18 or emancipated
• have a checking or savings account at Caixa (except Digital Social Savings and Caixa Fácil Savings)
• have sufficient FGTS balance for anticipation, within the minimum amounts for contracting
• have a CPF in good standing with the Federal Revenue
• be compliant with Caixa or use credit resources to settle the debt

The bank indicates its website for more information.

Inter

You must have a balance of at least R$300 in your FGTS accounts, be over 18 years of age and be an Inter account holder. Check the details on the website.

Itau

All Brazilians aged between 18 and 70 are eligible, with a regular CPF and who have an active or inactive FGTS account with a balance of more than R$400. Further information is available on the bank’s website.

Santander

It is necessary to be an account holder and the number of days between the date of hiring and the first business day of the anniversary month cannot be less than 90 days. The website talks more about it.

Original

The worker must be over 18 years of age, have a regular CPF at the Federal Revenue Service and have a balance available in the active or inactive FGTS account. The website talks more about the loan.

High demand to anticipate FGTS withdrawal

From 2020 to 2021, at a meeting of the FGTS Board of Trustees, it was pointed out that withdrawals-withdrawals have decreased, but not necessarily because of the fall in unemployment: birthday withdrawals have increased, as shown in the chart below.

Reinaldo Domingos, president of Abefin ​​(Brazilian Association of Financial Education Professionals) says that the loan can compensate in case of health problems or extreme poverty.

“When I’m having problems replacing food at home, paying for electricity, paying for water, and I can’t get any other credit, then yes, there’s no other alternative”, he says.

High fees and loss of security are reasons not to anticipate FGTS

Cíntia Senna, a specialist in financial planning, says that the fees charged on the FGTS take up a large part of the worker’s money.

She made a financial simulation using the lowest rate for anticipating the birthday withdrawal found by the report: 1.49% per month, the minimum rate of Banco BMG.

If there is a balance of R$ 10 thousand in the FGTS and five years are advanced, R$ 1,914.74 will be paid between interest and IOF (Tax on Financial Operations). The monthly rate of 1.49% per month corresponds to an annual interest rate of 19.42%, an amount that the worker will lose from his Fund.

“This rate, from my point of view, is expensive, because the financial institution has zero risk, because the money already exists, it is already there”, says Senna.

Senna is categorical in saying that, if possible, the money should not be advanced, much less for making investments.

She points out that care must be taken to ensure that the loan is not used for non-essential purposes. “The loan is something momentary, palliative, it is not a problem solver. So taking money does not solve a problem, it mitigates a situation that I need to understand what generated it, what was the cause of my need to use anticipation.”

The expert recommends caution when using the amount: “We have to be careful not to change a card debt, overdraft, and block my birthday withdrawal and not solve the problem of the cause.”

Domingos says that in anticipation, it is a classic mistake to want money without the real need. “Unfortunately, people sometimes think it’s stopped, yielding little. But if I’m going to take it out, it’ll be earning interest that I’ll pay and not know.”

He reaffirms that the rates are high and emphasizes that the money belongs to the worker: “Imagine the amounts that will be withheld from interest, from money that is already mine, guaranteed, the loss of the money that is there and would really be for a future more guarantor. I’m paying interest for a right that is already mine”, he explains.

Domingos recalls that the value cannot be pledged, unlike other applications. “It’s money that no one will touch.”

“If I had money invested in savings, or in the investment fund, or in the CDB or any other bank and I had a default, I would run the risk of the bank or the execution of that financial institution going there to get that value”, he explains.