Is it worth withdrawing the FGTS to invest? See simulations

The new round of extraordinary withdrawals from the FGTS (Fundo de Garantia do Tempo de Serviço), starting on April 20, coincides with a period of high interest rates in the country. The Selic rate rose to 11.75% per year after the most recent adjustment made by the Central Bank.

It is a condition that makes the redemption interesting even for workers who did not plan to take advantage of the permission to withdraw up to R$1,000.

Conservative investments in fixed income allow a yield up to 25.7% higher than the remuneration offered by the FGTS, as compared based on calculations by Andrew Storfer, director of economics at Anefac (National Association of Finance Executives), and Antônio Sanches, analyst of Rico’s investments.

In the comparison that shows the biggest difference, between the remuneration of 3% per year of the Guarantee Fund and the return of 12.93% of a CDB (Bank Deposit Certificate) of a medium-sized bank, the investment of R$ 1,000 rises to R$1,093, if maintained in the FGTS, and to R$1,374, in the CDB, considering a term of 36 months.

The calculations do not consider the variation of the TR (Referential Rate), which is not relevant to the result, and the eventual payment of profits that the FGTS may make to the shareholders in the second semester, since this depends on the results obtained by the fund and the balance of each worker. For the profitability of investments, there is a discount on the income tax rate.

Sanches also compared the FGTS income with the collection of interest for those who are in debt on the overdraft, as the pre-approved line of credit that many banks offer to customers is called.

According to him, debtors must withdraw the FGTS and pay off the debt, since the annual yield of 3% of the Guarantee Fund does not compare to the 128% interest charged by the bank in the modality.

For Rico’s analyst, FGTS redemption to pay debts or make investments should also be considered when there are other possibilities authorized by law for withdrawal, such as termination of the employment contract.

“Although the FGTS helps people who have difficulty saving money, others, who have this financial discipline, are anxious to see their money yielding a measly 3% a year”, commented Sanches.

The credit will be automatically made in the digital social savings for workers with a balance in the FGTS account. The movement of values ​​is through Caixa Tem.

With the application, the worker can pay bills, make purchases, transfer money to other banks, perform Pix or generate a code to withdraw cash at ATMs or lottery houses.

Only those who have a balance in the FGTS account will be able to withdraw. The limit is $1,000.

The release will start on April 20, but not everyone will be able to move the money on the initial date. There is a payment schedule, which runs until June 15th. Redemptions are released according to the worker’s birthday month. See deposit dates:

​Those who do not want to receive the amounts can request the return of the money to the account linked to the fund between April 8 and November 10.

The manifestation must occur through the FGTS application. Anyone who does not move the money by December 15 will also have the amounts returned to the fund.

CDBs from mid-sized banks offer higher returns

In the investment calculations made by Andrew Storfer, from Anefac, the CDBs offered by medium-sized banks represent the most advantageous options for all applications with redemption from one year and one day.

It is after this period that the IR (Income Tax) discount on income drops from 20% to 17.5%. The rate still retreats to 15% for application with more than two years.

In times of high interest rates, CDBs allow higher returns due to the rate of return from 110% of the CDI (Certificado de Depósito Interbancário). This was the index considered in the simulation. This product can pay fees of 140% of the CDI for higher value investments.

The investment offered by large banks is less competitive. For those who apply a relatively low initial value, as is the case of the simulated examples, the remuneration is only 93% of the CDI. Under these conditions, the investment loses in profitability for the other investments evaluated, with the exception of savings.

For applications at intervals of more than six months and less than a year and a day, LCIs and LCAs (Letters of Real Estate and Agribusiness Credit) bring the best return.

The remuneration of 90% of the CDI considered in the simulation proves to be advantageous in the short-term scenario because it is exempt from Income Tax. Other more competitive fixed-income investments, such as CDBs, have a 20% rate for redemptions made in that period.

Treasury Direct Selic and Conservative DI Fund were the other options analyzed. Both lag behind when compared to the profitability of CDBs of medium-sized banks and of LCIs and LCAs, but they proved to be advantageous options in comparison with CDBs of large banks and, mainly, in relation to savings accounts.

Management and custody fees were not considered for the Treasury and DI Fund simulations.

All examples are for demonstration purposes only. Interest and profitability may vary according to the fluctuation of rates practiced in the open market. The amount invested, the term of application, and the conditions offered by financial institutions to their customers also affect profitability.

By opting for investments with greater liquidity and more conservative, the simulations carried out by Anefac did not consider investments in incentivized debentures. This type of application is also considered to be fixed income. It is an alternative that usually offers higher profitability when compared to traditional applications, but it is also riskier.

Whoever buys this type of security in the capital market is, in practice, lending money to the company that issued this paper. In return, the investor receives interest. The risky part of the investment is precisely in the ability of the issuing company to honor its commitment.