What is a Credit Guarantee | Give wings to your plans!
May 2, 2019
Want to invest but are afraid of losing money? Then you need to know the FGC.
FGC (Credit Guarantor Fund) is a financial investment insurance.
The fund gathers banks and acts as a “deposit and application guarantor.” In the event that the financial institution goes bankrupt, it returns to investors the money deposited in the current account or in the majority of the investments. The maximum limit is R $ 250 thousand per CPF or CNPJ.
The institutions themselves support the fund with monthly contributions. The aim is to give stability to the financial system and give investors security.
The most popular applications that are covered by the FGC are: Current account, savings, CDB (Bank Deposit Certificate), LCA (Agribusiness Credit Letters), LCI (Letters of Real Estate Credit) and LC (Letters of Exchange).
You can check all institutions associated with the FGC here.
But be warned: not all banking services are secured. Investment funds, pension funds, Treasury Direct, financial bills, capitalization and stocks, for example, are out of coverage.
What would be the payment by the FGC?
In the event of bankruptcy, the Central Bank intervenes in the financial institution and surveys the clients. Credits are listed by CPF or CNPJ of those who have a deposit or investment.
The fund selects a bank and nearby agencies for each client to receive money between 10 and 15 days. The FGC website publishes a notice with payment information: dates, required documents and agency address.