The FGC guarantee

The FGC (Fundo Garantidor de Créditos) is a private, industry-funded body that protects depositors and investors if a member bank fails. It is the reason Brazilians can buy a CDB from a small, high-paying bank without taking on the full risk of that bank collapsing.

What it covers

At the time of writing, the FGC guarantees these instruments, among others:

• Bank deposits (including poupança and checking balances)
• CDB
• LCI and LCA

It does not cover market instruments such as debêntures, CRI, CRA, letras financeiras or government bonds (Tesouro needs no FGC — the government is the issuer).

The limits

The protection is capped. At the time of writing the well-known limits are:

• R$250,000 per person, per financial institution (or conglomerate).
• An overall ceiling of R$1,000,000 per person, renewable over a rolling four-year window.

These limits are set by the FGC and have changed in the past — always check the current figures.

The practical strategy

The limits shape how larger savers allocate:

• Keep your exposure to any single bank (including accrued interest) within the per-institution limit.
• Spread larger sums across several institutions to stay protected on the whole amount.
• Remember the guarantee covers principal plus accrued interest combined — so leave headroom below the cap rather than buying right up to it.

The caveat

The FGC is robust but not infinite — a systemic crisis affecting many banks at once could strain it, and payouts take time to process. It is a powerful safety net for idiosyncratic single-bank failures, which is exactly the risk it is designed for. Treat it as strong protection within its limits, not an unconditional state guarantee.