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Step by Step: Consult and Use your FGTS
Find out everything about how and why to withdraw your balance and check out valuable tips to maximize its use
The Service Time Guarantee Fund (FGTS) is a right of Brazilian workers, guaranteeing a financial reserve deposited by the employer throughout the working period. In this article, we will explore the FGTS consultation and use process, offering tips on how to best take advantage of this resource.
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The FGTS was created to protect workers fired without just cause, creating a type of reserve fund. Employers deposit 8% of the employee's salary monthly into a linked account, managed by Caixa Econômica Federal.
Why and Who Can Withdraw FGTS?
Before starting the FGTS withdrawal process, it is essential to understand the permitted situations for withdrawing the money and check if you fit into any of them. The main reasons include unfair dismissal, where the worker dismissed without reason is entitled to withdraw the FGTS. It is also possible to withdraw in the event of contract termination by agreement between employee and employer to finalize the employment contract, in addition to retirement, which allows the worker to withdraw the FGTS in full.
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Another common reason is to buy your own home, allowing the use of FGTS to purchase a residential property. Furthermore, it is possible to use the fund to settle or amortize housing financing, paying or reducing the outstanding balance of the property financing. Workers or dependents diagnosed with serious illnesses, such as cancer or HIV, are also entitled to withdraw FGTS. In case of death of the account holder, dependents or legal heirs can withdraw the FGTS balance.
Necessary documents
To withdraw the FGTS, it is necessary to present specific documentation that may vary depending on the situation in which the withdrawal is being requested. In general, the basic documents required are the Identity Document (RG), the Individual Taxpayer Registry (CPF), the Work Card, proof of recent residence and the PIS/PASEP number.
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Depending on the situation, there may be a need for additional documents, such as a letter of resignation in cases of unfair dismissal, a medical certificate in situations of serious illness or even a purchase and sale contract for purchasing your own home.
Starting the Process
To start the FGTS withdrawal process, access the Caixa Econômica Federal website, which is the bank responsible for administering the fund. On the website, you will find detailed information about the procedures necessary to make the withdrawal. It is essential to check whether the available balance in your account is sufficient for the amount you wish to withdraw. This query can be made either on the Caixa website, at official agencies or through the FGTS application.
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There are different withdrawal methods to adapt to the different situations of workers. Among the main options are the Termination Withdrawal, the Birthday Withdrawal, the Serious Illness Withdrawal, the Withdrawal for the Purchase of Your Own House and the Retirement Withdrawal. Each of these modalities has its specificities, as is the case with the Birthday Withdrawal, which, once chosen, cannot be changed for a period of two years.
Requesting the FGTS
After checking the FGTS balance and gathering all the necessary documentation, the next step is to request the withdrawal. The process varies depending on the modality chosen. For Withdrawal-Termination, the worker must go to a Caixa Econômica Federal branch or a lottery outlet.
This type of withdrawal is applicable in cases of unfair dismissal and requires the presentation of specific documents, such as the letter of resignation and proof of contractual termination. The Birthday Withdrawal, a modality that allows the annual withdrawal of a portion of the FGTS balance in the worker's birthday month, can be requested through the FGTS application or through the Caixa website. This withdrawal is done digitally, facilitating access to resources without the need to physically go to a branch.
For the Withdrawal intended for the Purchase of a Home, specific documentation is required that proves the use of the fund to purchase a residential property. This process must be carried out in person at a Caixa Econômica Federal branch, where the worker will present the property purchase and sale contract and other required documents.
Receiving the Value
After approval of the withdrawal, the amount will be released according to the selected modality. If the option chosen is account credit, the amount will be deposited directly into the holder's current or savings account. Alternatively, if the chosen method is cash withdrawal, the amount can be withdrawn in person at a Caixa Econômica Federal branch or at lottery outlets, depending on the amount and the specific withdrawal method.
It is important to highlight that processing time may vary according to the type and situation of the worker. In some cases, the amount may be available almost immediately, while in others, it may be necessary to wait a few days for release. Therefore, it is essential to monitor the status of the order through the channels provided by Caixa, such as the official website, app or service at branches.
Managing Money
Receiving the FGTS is an excellent opportunity to organize your finances effectively. Firstly, it is advisable to use this money to pay off debts, especially those with high interest, such as credit cards and loans. Furthermore, it is responsible for allocating part of the amount received to create or reinforce an emergency reserve.
This fund should be kept in a savings account or other easily accessible type of investment, ensuring that you have resources available to cover unforeseen expenses, such as health problems, urgent home repairs or temporary unemployment situations. Finally, consider the possibility of investing part of the FGTS in low-risk options, such as Treasury Direct bonds or conservative investment funds. These investments can provide additional income over time.
Extra Tips
It is essential to maintain a financial reserve for emergencies. Allocate a portion of the FGTS withdrawal amount to an easily accessible account to cover unexpected expenses, such as health problems, home repairs or periods of temporary unemployment. If you don't have significant debts and already have an emergency fund, investing money in a well-informed way can be a great choice.
Investing in education is one of the best ways to ensure a stable financial future. Using part of the withdrawal amount for courses, training or other qualifications can expand your professional opportunities. Furthermore, you can use part of the FGTS to make a dream come true, be it traveling, purchasing an item of sentimental value or investing in a hobby that brings you personal satisfaction.
Conclusion
The FGTS is a valuable resource for Brazilian workers, and knowing how and when to use it can make a big difference to your financial stability. Make sure you are well informed about the rules and procedures, and, if necessary, seek guidance from a financial professional to help manage and invest this resource efficiently.
Furthermore, it is important to carefully plan the use of this money, always prioritizing your most urgent needs and evaluating investment opportunities that can provide long-term financial security and growth. Making informed and strategic decisions about the use of FGTS can not only solve immediate problems, but also build a solid foundation for a more stable and prosperous financial future.
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