Withdrawing FGTS funds early is a real possibility for many workers in Brazil. If you need this money before the traditional withdrawal situations, such as dismissal without just cause or retirement, know that there are several ways to access it early. 

The most common option is the early withdrawal of your birthday benefit, offered by several banks, allowing you to access part of your balance without having to wait for the annual date of this type of withdrawal. 

Who can withdraw their FGTS (Brazilian severance pay fund) early?

Before learning how to make a withdrawal, it's important to know who can request this advance. The birthday withdrawal option allows workers to withdraw a portion of their FGTS (Brazilian severance fund) every year in the month of their birthday. If they need the money before that date, it's possible to obtain an advance through loans linked to the available balance.

The main requirements for anticipation are:

  • To be registered for the birthday withdrawal option;
  • Having available funds in the FGTS account;
  • Authorize the bank to access FGTS (Brazilian employee severance fund) information;
  • Not having any restrictions that prevent the transaction from being carried out at the chosen bank.

Step-by-step guide to withdrawing FGTS funds early.

If you meet the criteria, you can proceed with the application. Here's a step-by-step guide:

1. Choose an authorized bank.

The early withdrawal of your birthday benefit works like a loan, where you use your FGTS balance as collateral. Several banks offer this option, and each has different interest rates and the number of installments available. Therefore, research thoroughly before choosing where to contract the service.

2. Access the FGTS app.

To authorize the bank to check your balance and allow them to perform the transaction, follow these steps:

  • Download the FGTS app (available for Android and iOS);
  • Log in using your CPF (Brazilian tax identification number) and registered password;
  • In the main menu, click on “Authorize Banks”;
  • Choose the financial institution where you wish to obtain the advance payment;
  • Confirm authorization.

This step is essential for the bank to access your balance and be able to process the advance payment.

3. Simulate the advance payment at your chosen bank.

Now that the bank has permission to access your FGTS (Brazilian employee severance fund), go to the financial institution's app or website and run a simulation. This simulation will show you:

  • The amount available for advance payment;
  • The interest applied;
  • The number of installments;
  • The final amount that will be deposited into your account.

Read all the terms and conditions carefully before proceeding.

4. Confirm the hiring.

If you agree with the terms and conditions, simply confirm the transaction. The bank will transfer the money to your account, and in the coming years, the amounts available for the anniversary withdrawal will already be committed to paying off the advance.

The advantage of this type of advance payment is that you don't have to worry about monthly installments. The payment is made automatically, directly from your FGTS balance, as the annual withdrawals are released.

Is it worth withdrawing your FGTS (Brazilian severance pay fund) early?

FGTS (Brazilian employee severance fund) early withdrawal can be a good alternative for those who need quick cash, but it's important to assess whether this is the best option for your situation. Interest rates are usually lower than other types of credit, since the FGTS balance serves as collateral. However, by making an early withdrawal, you stop receiving the annual amounts of the anniversary withdrawal until the debt is paid off.

If the money is needed to pay off debts with higher interest rates or for an emergency, it may be worthwhile. But if there is no urgent need, keeping the balance in the FGTS (Brazilian employee severance fund) may be a safer choice.

Withdrawing FGTS funds early is a simple process and can be done entirely online. The key is to choose a reliable bank, understand the loan terms, and ensure that the early withdrawal truly makes sense for your needs. 

Now that you know how it works, you can make a more informed decision and make better use of your money.

See also: Can FGTS be deducted from an employee's salary? Understand

February 16, 2025

social benefit