What is the FGC?
The Credit Guarantee Fund (Fundo Garantidor de Créditos, or FGC) is a private, non-profit entity that works like a form of insurance for your investments. It was created to protect people who put money into member financial institutions: if an institution fails or is placed under intervention or liquidation by the Central Bank of Brazil, the FGC reimburses your money up to the guaranteed limit.
The fund is maintained by the financial institutions themselves, which deposit a monthly percentage of the amounts invested in covered products. You pay nothing and don't need to do anything to activate this protection — it's automatic for eligible products.
Are your investments protected?
Yes. Eligible investments are custodied at a financial institution that is a member of the FGC, regulated by the Central Bank of Brazil. This means that, in the cases provided for by law, the FGC guarantees reimbursement of the invested amount plus the interest accrued up to the date the Central Bank declares a special regime (intervention or liquidation).
It's important to understand what the FGC does and does not do: the FGC protects you against the failure of the financial institution, but it does not protect against market losses or fluctuations in the performance of your investments.
What does the FGC cover?
Up to R$250,000 per CPF or CNPJ, per financial institution (or financial conglomerate)
Includes the amount invested plus interest accrued up to the date of intervention or liquidation
Protection applies in the event of intervention, liquidation, or bankruptcy of the institution
Protection does not apply to losses caused by market fluctuations
Which products are protected by the FGC?
The FGC guarantees, among others: CDB, LCI (Real Estate Credit Note) and LCA (Agribusiness Credit Note)
Which products are not protected
Some products fall outside the FGC's ordinary guarantee, such as: investment funds, government securities (Tesouro Direto), debentures, CRI, CRA, LIG, LF (Financial Note), capitalization bonds, and deposits held abroad.
How does the R$250,000 limit work?
The R$250,000 limit is per CPF/CNPJ and per financial institution (or conglomerate). To calculate it, all of the holder's credits across all institutions in the same financial conglomerate are added together.
Joint accounts: the guarantee is limited to R$250,000 (or the account balance, if lower) and divided equally among the holders — each one receives their share separately. For example, in a two-holder account with R$250,000, each person receives R$125,000.
What about the R$1 million ceiling?
In addition to the R$250,000 limit per institution, there is a global ceiling of R$1 million per CPF/CNPJ every 4 years. The count begins on the date the first institution enters a special regime and, after 4 years, the limit is renewed.