In times when the cost of living in Colombia has exceeded records not seen in two decades, money is hardly enough to buy basic goods and services.
It should be remembered that in order to contain said inflation, The Banco de la República added efforts to contain the growing index, such as raising interest rates, which, according to experts, is the theory of increasing interest rates. It works like a basic principle of economics, “supply and demand”. If it becomes more expensive to acquire credits, consumption would slow down and this has an effect on prices, and if there is less demand, there are fewer purchases and prices might drop.
Undoubtedly, the situation described above has directly affected the most vulnerable families, who only have the alternative of paying for said goods on credit, but on the other side of the coin. there are those who can take advantage of the rise in rates, those who seek to save.
Faced with this panorama, more and more Colombians are looking to save money or invest to have their money safe and acquire profitability.. The truth is that at this time the so-called CDT have become more popular in the market, due to the increase in interest rates.
According to experts, the profitability of these products is higher and is a safe investment alternative. According to a survey conducted by The Republic, The banks with the highest annual effective profitability are Banco de Bogotá (16.9%); Banco Pichincha (16.1%); Credifinanciera (16.30%), Serfinanza (15.5%) and Banco W (15.5%).
The advice of Andrés Moreno, an expert in the country’s finances, is mainly: “The first thing is that to cover inflation you have to invest, For example, in Fixed Term Deposit Certificates (CDT), in voluntary pension Investment Funds and in collective portfolio funds, fixed income portfolios, where you can have rates of 12 to 18%, which is above of inflation that is at 13.28″. He also concluded that: “Inflation can be covered by covering some assets, such as real estate, since they tend to appreciate.”
What are CDTs and what is their function?
Among Colombians who trust the financial system to save, the preferred instrument is Term Certificates of Deposit (CDT). These are documents (which were previously on paper and are now mostly digital) issued by financial institutions to the customer who deposits the money. with the expectation that in a period of time they will pay you interest. Generally, the most used terms are 30, 60, 90, 180 and 360 days.
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