The increase of more than 10 percentage points in interest rates seen in the last year not only impacts the cost of credit in the country. The good news is that financial institutions have also been forced to recognize a better return on the resources that people have under their management through savings accounts and, of course, the certificates of deposit term (CDT), on which today yields of more than 16 percent effective per year are constituted, although that rate depends on the term and the amount that you decide to save in those financial instruments.
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Opening a CDT, as it is said in popular slang, may not have much science. But when it comes to getting the most out of resources, the advice of experts never hurts, who have as a golden rule not to be dazzled by excessively high interest rates or extraordinary benefits offered by some entities, as that can also a warning signal.
Another rule that must be adhered to is never to deposit your money in entities that are not monitored by the market authorities, which in the case of Colombia are the Financial Superintendency and the Solidarity Economy Superintendency.
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According to him ‘Financial Doctor’, Mibanco’s financial education program, CDTs are an investment tool under which a person gives the bank a sum of money that cannot be withdrawn for a certain time (30, 60, 90, 180 or 360 days) in order to receive a return at the expiration of the term agreed with the entity.
The same program provides another series of recommendations that can guide people so that they not only have security of their resources but also take advantage of the best conditions that the market is offering under the current market and economic situation.
Four key aspects
1. Be clear how much money do you have for this investment or savings: each bank has its own minimum opening amount for opening a CDT, so you can consult each institution and choose the option that best suits your budget. For example, in Mibanco the opening amount is 50,000 pesos if it is a physical CDT and 100,000 if it is a virtual CDT.
2. Be clear if you need this money soon or not: the term is the time during which you agree to keep the money deposited in the bank and therefore, you will not be able to withdraw it until it is fulfilled. Usually, semi in number of days, there may be terms of 30, 60, 90, 180, 360, 540 or 720 days. Consider investing for a period of maximum one year for now, to evaluate how prices and rates are modified.
3. Don’t forget to check the interest rates: the longer the time of the CDT, the higher the interest rate and the higher the interest rate, the greater the earnings received. Today, the average rate offered by banks is 17 percent effective per year, according to data from the Superfinanciera, but there are entities that offer close to 20 percent.
4. Keep in mind the conditions of the CDT: the term of delivery of the money, as well as the interest rate and the amount to be invested are agreed at the time of acquiring the CDT and cannot be modified. However, in case you urgently need the money, you can sell your CDT to someone else and notify the bank by means of an endorsement.
Keeping money in a CDT is more cost-effective than keeping it “sitting” in your savings account or at home. However, always keep in mind that on many occasions it is best to consult experts to decide what is the amount and term that is best for you.
