Keep these tips in mind if you are considering opening a CDT

Bogota – Raising prices to try to contain inflation has its pros and cons. If you want to borrow money then the interest is more expensive, but if you are the one who lends to the bank (makes the investment) then the returns are good because the rates you pay are high.

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Among the options one can invest in Good returns and low risk, are certificates of deposit for term, commonly known as CDT. This is an investment vehicle whereby you give the bank an amount of money that you will not be able to withdraw for a certain period (days or months) in order to get interest when you claim it at the end of the agreed period.

The amount of interest to be received depends on several factors: The amount of money you decide to deposit, the time you decide to keep it in the bank and the market conditions at the time the shipment is sent.

Tips for opening a CDT

So, Mibanco financial education experts offer four Tips to keep in mind if you are considering opening a CDT:

• Be clear about the opening amount: It is the minimum amount that you must deposit to open a CDT. Each bank has its own opening amount, so you can consult with each institution and choose the option that best suits your budget.
• Consider the terms offered by the bank: The term is the time during which it is agreed that the money deposited will be kept in the bank, and therefore you will not be able to withdraw it until it is satisfied. Usually, it is measured by the number of days, and there may be terms of 30, 60, 90, 180, 360, 540 or 720 days. Consider investing for a maximum of one year right now, to assess how prices and rates will change.
• Don’t forget to check out the interest rates: The longer the CDT, the higher the interest rate and the higher the interest rate, the greater the profit received.
• Consider the terms of the CDT: The term of delivery of the funds, as well as the interest rate and the amount to be invested are agreed upon at the time of obtaining the CDT and cannot be modified. However, if you desperately need the money, you can sell your CDT to someone else and notify the bank with an endorsement.

Other tips

Experts from Credifinanciera Bank say so It is also important to pay attention to the following:

• Entity Qualifications: It is important to know the rating of the issuer because it reflects the ability of the entities to respond to their obligations in the short and long term. When you choose your CDT term, check what qualifications the entity has for the chosen terms. For example, if you choose 150 days, check the short-term rating for the entity.
• Channels and services: It is very important to evaluate the service and support that the entity you are investing in will provide you, the available service channels in case you need support during the validity of your product.

At this time, when inflation is high and interest rates too, It is much more profitable to keep your money in a CDT than to leave it “fixed” in your savings account Analysts explained that the interest paid in the latter is very low.

However, Mibanco experts recommend it “Many times It is best to seek expert advice. To decide what is the most appropriate amount and term.