How Brazil Protects Your Money in Banks

What Is the FGC and Who Does It Protect?

The Fundo Garantidor de Créditos (FGC) is Brazil's deposit guarantee fund, a private, non-profit entity that protects customers of banks, fintechs and other financial institutions. If an institution fails or has its licence revoked by the Central Bank, the FGC steps in to reimburse depositors and investors.

Which Products Are Covered?

The FGC covers the most common retail products: current and savings accounts, CDBs (bank certificates of deposit), LCIs, LCAs, LCs and RDBs. Each person is protected up to R$ 250,000 per institution, and up to a total ceiling of R$ 1,000,000 spread across all institutions within a four-year rolling period.

What Role Does the Central Bank Play?

Brazil's Central Bank (Banco Central do Brasil – BCB) supervises and regulates the entire financial system. It monitors institutions for solvency and compliance, can intervene or liquidate a failing bank, and enforces rules that prevent excessive risk-taking. Its oversight is the first line of defence before the FGC ever needs to act.

How Do Financial Institutions Protect Against Fraud?

Banks and fintechs are required to implement multi-layer security protocols, including two-factor authentication, transaction monitoring systems and anti-money-laundering controls. The Central Bank's Pix instant payment system also has its own fraud-prevention rules, such as transfer limits at night.

What Should Expats and Investors Watch Out For?

If you hold accounts at more than one institution, keep track of your total balance per institution relative to the R$ 250,000 FGC limit. Investments outside the FGC umbrella — such as CRIs, CRAs, shares or crypto assets — carry their own risks and are not reimbursed by the fund. Always check that your institution is authorised by the Central Bank before depositing money.