CDT (Certificado de Depósito a Término)

Bogotá seen from the north, with the Eastern Hills along the horizon — Photo: Panorama de Bogotá.jpg — Felipe Ortega Grijalba, CC BY-SA 4.0

Definition

A Colombian fixed-term bank deposit — money is locked for the agreed term (30, 90, 180, 360 days, and beyond) in exchange for a fixed interest rate, typically insured by Fogafín up to its limit.

Why it matters

The most common first step above a plain savings account for Colombian beginners.

How it works in practice

You choose an amount and a term, the bank fixes the rate for that whole term, and the money is unavailable until it ends. Rates are normally quoted as E.A. (efectivo anual, the effective annual rate) — the number that already includes compounding, which makes two offers directly comparable. Longer terms and larger amounts usually earn more. Deposits at Fogafín-member institutions are insured up to a per-person, per-institution limit; confirm the current figure at fogafin.gov.co. Tax is generally withheld at source on the interest paid (retención en la fuente).

A concrete example

Ten million pesos placed for 360 days at an effective annual rate of 9% returns about 900,000 pesos of gross interest at the end of the term, before withholding. Renewing the same CDT the following year does not guarantee the same rate — the new one is set at whatever the market offers on renewal day.

What people most often get wrong

A CDT is genuinely locked: you generally cannot cancel it early, and the alternative is endorsing or negotiating it in the secondary market, usually at a worse price. Never place emergency-fund money in one. Also compare like with like — a rate quoted nominal (nominal anual) looks lower than the same rate quoted E.A., so make sure both offers use the same convention.

Frequently asked questions

Can I get my money out of a CDT early?

Normally not by cancelling it. A CDT is a negotiable title, so in practice the way out is to endorse or sell it to someone else, which usually means accepting less than you would have received at maturity. Choose the term with that in mind.

Is a CDT insured?

Deposits at institutions that belong to Fogafín are covered up to a stated limit per person per institution. Confirm both that your bank is a member and what the current limit is at fogafin.gov.co before assuming coverage, especially if you hold several products at the same bank.

Educational content only — not financial or tax advice. Rates, limits and tax rules change: confirm current figures with the regulator or tax authority before deciding.