A term deposit certificate, CDT, is a favorable option for increasing savings, but in Colombia it is not as widely used.According to the MejorCDT platform, in the country, only three out of every 100 people have a certificate of deposit.
However, with the constant fluctuations in interest rates and the various investment options available in the Colombian market, the question arises: Is CDT still an attractive investment at this time?
According to Carlos Correa, CEO and co-founder of MejorCDT, “Investing in CDT is quite safe, since they are backed by financial entities and the Financial Institutions Guarantee Fund, Fogafin, covers up to $50 million per person.which provides additional protection against other investments. Interest rates are fixed, which guarantees stability and predictable returns, without worrying about the ups and downs of the market.”
This indicates that that investment is always profitable and safe; However, we must ignore that rates will continue to fall.
Andrés Moreno Jaramillo, economist and financial consultant, explained that “CDT rates are falling, obviously, because interest rates in Colombia started to fall from December 2023 onwards.. They are going to lower rates again in September, October and December. By the end of the year, CDT rates should be below 10%.”
Inflation is a factor that greatly affects certificates of deposit, as this affects how much is actually earned, as it reduces the purchasing power of these investment instruments.
Correa confirmed that “Today’s annual inflation is close to 6.8%, which means things are 6.8% more expensive today than last year, so to beat inflation you have to find CDTs that deliver higher profitability than that value .”
Therefore, after analyzing the returns and according to information from the Financial Supervision, as of August 15, the entities with the best annual cash collection rates for CDT within a period of 180 days. Banco Pichincha with 11.36% EA, Banco W with 11.32 EA, Bancamía with 11.12% EA, Banco Unión with 10.96% and Banco GNB Sudameris with 10.44% EA
They are the ones with the highest rates for a 360 day term Banco W with 11.91% EA, Ban100 with 11.78% EA, Banco Unión with 11.74% EA, Bancamía with 11.41% EA and Banco Pichincha with 10.86% EA
These two terms stand out, as analysts believe they are the most frequently searched for by people when consulting CDT.However, if you are looking for a lower or higher one, you can go to platforms like MejorCDT that offer a comparison of the most profitable rates on a daily basis.
Factors for choosing CDT
One of the most important variables when choosing an investment or savings method is the profitability offered. In CDT this depends on three factors, the chosen term, the amount and the entity.
The term is essential, because the longer the money is left, the better the rates. The amount entered affects the higher the amount of money, the the better the profitability; It is worth clarifying that this does not mean that a large sum is required to open a CDT, as they can be opened from $500,000 in Colombia.
The final important factor is the entity to which the CDT applies, since each bank and entity has the freedom to define the rates they wish, ie These may change depending on the economic and political details of the country.