A Term Deposit Certificate (CDT) It is a financial product offered by different banking entities, in which a person can deposit an amount of money for a certain period in exchange for receiving a return or fixed interest on the amount deposited at the expiration of the agreed term, as explained in an article by BBVA bank.
Likewise, the ‘Better CDT’ portal, explains that these deposits are a safe and very low-risk way to invest money, since they offer a pre-established and guaranteed interest rate. They can also be a good option for those people looking to maintain their capital and obtain additional returns, taking into account that they can provide greater security compared to other existing forms of investment.
Financial instruments like this allow individuals and investors to plan for the medium or long term, as they offer terms ranging from a few months to several years. Additionally, these are usually backed by the Financial Institutions Guarantee Fund (FOGAFIN) up to a certain amount, which provides an additional layer of security for depositors.
Benefits of a CDT
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The expert portal ‘Rankia’ explains that opening a CDT can have a variety of advantages to save money, here are some:
- They provide greater stability.
- CDT rates are adjusted to inflation periods.
- There is the option of having a variable or fixed rate and the time period can be determined, according to needs.
- A CDT can be negotiated or endorsed, that is, hand it over to another person.
What happens if you withdraw the money early?
If you decide to withdraw the money before the deadline expires, you may be fined, which may vary depending on the entity. In that sense, according to the ‘best CDT’ portal, These are other options you could use:
- Trade the CDT on the Colombian stock exchange through a stock broker, negotiating the value of the product and receiving the price established by the market.
- You can look for a person to buy your CDT.
- You can move it or transfer it to the person of your choice, changing the name of the Term Deposit Certificate and telling the bank that you want to endorse your CDT.
- A CDT can be used as a security for a business, that is to say, When doing a business, the amount invested in it can be used as part of the payment if necessary.
Banks that are paying the CDT above 11%
These would be the updated interest rates that the different banking entities pay for CDTaccording to the Financial Superintendence of Colombia:
90 days
- Bank Contact: 11.07%
- GNB Sudameris Bank: 11.05%
Between 91 and 119 days:
- Union Bank: 11.14%
- My bank: 11.16%
120 days
- Bank Contact: 11.59%
- Pichincha Bank: 11.26%
- GNB Sudameris Bank: 11.87%
- Bancamía: 11.05%
- Bank W: 11.18%
Between 121 and 179 days
- Bancien: 11.17%
- Bank Contact: 11.57%
- GNB Sudameris Bank: 11.63%
- Pichincha Bank: 11.10%
- Bancoomeva: 11.00%
180 days
- Bancien: 11.11%
- Bank Contact: 11.84%
- Serfinanza Bank: 11.78%
- Bank W: 11.07%
- GNB Sudameris Bank: 11.92%
- Pichincha Bank: 11.45%
Between 181 and 359 days
- Bancien: 11.27%
- AV Villas: 11.10%
- Bank Contact: 12.07%
- Serfinanza Bank: 12.29%
- Union Bank: 11.11%
- Bank W: 11.22%
- Bancamía: 11.41%
- GNB Sudameris Bank: 12.16%
- Pichincha Bank: 11.27%
360 days
- Bank Contact: 11.37%
- Bank of Bogota: 11.53%
- Bank W: 11.46%
Greater than 360 days
- Bank W: 11.22%
- Bancolombia: 11.64%
If you want to consult other entities and their percentages, you can access the Financial Superintendency page by clicking here.
