In the midst of the uncertainty that is currently being experienced due to inflation rates, the rise in the dollar, the conflict between Russia and Ukraine, the logistics crisis and others, the Certificate of Term Deposit or CDT is positioned as an investment option, given the lower risk they carry.
According to a survey conducted by LR of more than 20 banking entities, Banco Pichincha (11.50%), Banco de Occidente (10.90%), Serfinanza (10.50%), Credifinanciera (9.90%), Banco W (9.85%) and Banco Mundo Mujer (9.80%) contemplate the best Annual Effective rates, with minimum amounts between $500,000 and $1 million, and with a minimum term of 180 days.
For the banking and insurance analyst Wilson Triana, there are several scenarios that influence the interest rates offered by banks, since the country’s economic and political situation is taken into account, possible crises and, as mentioned above, the role of the Banco de la República, in charge of setting reference rates.
It is not a secret that CDTs are the most reliable option for “conservatives”, that is, those who seek to keep their capital active but under a lower level of risk, which does not detract from their peace of mind. To do this, this formula must be taken into account, although it seems obvious: the longer the term and the capital, the higher the profits.
“It is important to have sufficient certainty that the resources to be invested are with fixed terms, which cannot be used until the agreed expiration date. Likewise, it is key to validate the solidity of the entity with which the investment is contracted, since it must be regulated by the state control entities,” said Triana.
Let’s look at an example: if I want to invest $5 million in Bancolombia’s physical CDT, at 190 days, I might obtain a profit of $191,648, taking into account an effective rate of 7.70% and a total withholding of $7,985.34. It should be noted that the frequency of interest is calculated at maturity. At the time of making the investment, you can choose how often to receive them, whether monthly, bimonthly or quarterly.
Now, is it possible to withdraw the money from this product before the established time? In most cases it is not favorable because the penalties can make you lose the interest earned during the months.
In the case of Bbva, “it is not possible. Being a term deposit, it cannot be canceled before the agreed date. If required, you can negotiate your CDT endorsing it in the secondary market”, indicated the entity.
However, withdrawal can be traded on the Colombian Stock Exchange. This is a process that is done through a stockbroker, negotiating the value of the product and receiving the price established by the market.
On the other hand, you can find a person who will buy it from you and, in this way, receive the money you invested, transferring the security.
“Options such as CDTs are perhaps a good alternative, especially in well-qualified banks. Another issue is that the dollar can serve as a hedge once morest uncertainty, since it rises the greater it is,” said Camilo Pérez, head of economic research at Banco de Bogotá.
What to invest in given the current volatility?
In the first instance, it is necessary to clarify that financial analysts recommend a waiting period to initiate investments, given the storm that the markets are going through as a result of the high price of the dollar and the fear of a global recession. However, in addition to CDTs, fixed income is suggested, that is, those instruments in which the issuers guarantee to return the invested capital plus a certain return. This is the case of the Government’s Treasury Bonds (TES), which, according to experts, have had a depreciation of between 15% and 20% on average.
