Certificate of Deposit (CDT) -- 17 % annual return?

@PhilCo58 Me too. CDs in Colombia are the best kept secret

Some people took a big risk and put money in Colombian CDTs a year ago

Turns out they lucked out-high returns and the peso is strong-main 2 reasons-Petro is a lame duck president and cant push his radical reforms through, and that has calmed  markets. and the second being , the Banco De La Republica has kept interest rates extremely high for longer, unlike other Latin countries who have cut, depsite pressure from Petro.

But it could have easily gone the other way, and people lose big time. Look at Venezuela and Argentina

Hi @nico peligro

I couldn’t agree more with you. Investing in Latin American countries always carries a certain level of risk.

Fortunately, in my case, luck was on my side. I converted USD to COP a year ago at 4.800 COP/USD, and now it stands at 4.000. This translates to a Forex Gain of 17%. Adding the Certificate of Deposit Interest Rate (16.2%) to the mix, the total gain hits an impressive 33%. Reflecting on this, I wish I had invested more in Colombia a year ago.

Finally, remain mindful of the challenges in the U.S. They've been prolific in printing money lately, and the government seems deeply entwined in a debt addiction. It's a complex financial landscape globally.

Hi @migueltmedeiros ,

Could you offer any advice to someone who is living in the United States of America with the desire to open a CDT with a Colombian bank? I don't know where to even start. I've been trying to do online research, and I found this forum where you sound highly informed (especially in contrast to me, the LEAST informed person). I don't possess a cedula number, but I have extended family in Colombia who I visit periodically. I have a long term goal of moving to Colombia and living in Antioquia, and I want to start taking steps toward that goal, with one of the first steps being to open a CDT in Colombia (if that's even possible) to see how that goes. Are there any Colombian banks that accept foreigners?

@cccmedia

I have just received the payout on my CDT with Bancolombia it was invested for 15 months at 15% return. No problems with the investment or getting the money at the end of the day, it was automatically deposited into my account on the right day.

With Bancolombia you can initiate a CDT online, and it shows on your account, you don't receive a certificate, but they told me I could go into any Branch and ask for one if it was needed (it wasn't)

there was a simulator on the site that allowed me to find the optimum return for my investment.

Would I do it again, yes, but not under this Government, in fact after all my bravado about investing and buying here, I am in the process of selling, and moving what little money I have abroad, and then going to rent.

    Hi @migueltmedeiros ,
Could you offer any advice to someone who is living in the United States of America with the desire to open a CDT with a Colombian bank? I don't know where to even start. I've been trying to do online research, and I found this forum where you sound highly informed (especially in contrast to me, the LEAST informed person). I don't possess a cedula number, but I have extended family in Colombia who I visit periodically. I have a long term goal of moving to Colombia and living in Antioquia, and I want to start taking steps toward that goal, with one of the first steps being to open a CDT in Colombia (if that's even possible) to see how that goes. Are there any Colombian banks that accept foreigners?
   

    -@NicolasVasquez

I have heard of some who have been able to open an account with just their passport.  They've said they had to go to multiple branches to find the right manager to do it.  Have no idea if it's true or not.

If you trust your Colombian family, you can send the money directly to one of their accounts, and they can invest for you.  Don't forget the 4/1000 transfer cost (for them), plus the 15% or so gains tax when you withdraw.

The CDT rates have dropped recently to around 10-12%.  Still good compared to the US, but just barely above inflation here.

Hi @NicolasVasquez

It's fantastic that you're exploring long-term plans of living in Antioquia!

If you don't have a "Cedula de Extranjería," but have reliable family members in Colombia, I would recommend considering opening the CDT in their name.

The CDT I currently have actually allows for direct transfers in USD at the spot forex rate, so you dont lose money on the conversion.

While it's worth noting that interest rates have decreased recently, you can still secure a rate ranging between 14-15% (nominal).

Keep in mind that for a CDT with a 15.5% interest rate, the effective rate after deducting 4% withholding tax (WHT) and the remaining amount for health contributions is approximately 13.6%.

Feel free to reach out if you need any assistance or further information. I'm here to help the best i can!

@NicolasVasquez If you're willing to come here for 3 months and open a bank account with your passport (not all banks do this but many people have found success with Bancolombia - I know I did)... you'll be off to a good start.

If you can't do this, but you 100% trust your Colombian peeps... you could deposit money into THEIR Bancolombia account and open the CDT that way.

But if you do NOT trust your Colombian contacts ONE THOUSAND PERCENT, don't go that 2nd route. Why? Cuz any money given to Colombians, is GONE FOREVER. No such thing as loans here, it's all gifts.

If you don't have a "Cedula de Extranjería," but have reliable family members in Colombia, I would recommend considering opening the CDT in their name.

Feel free to reach out if you need any assistance or further information. I'm here to help the best i can!
    -@migueltmedeiros

For someone offering financial help, you've probably just given the most dangerously daft advice short of depositing cash with a Nigerian prince.

People, you'd have to be totally mad to deposit money in anyone else's name unless it's a gift.

Adding the Certificate of Deposit Interest Rate (16.2%) to the mix,   

    -@migueltmedeiros

You might like to name the bank, and mention the loss due to inflation.

    If you don't have a "Cedula de Extranjería," but have reliable family members in Colombia, I would recommend considering opening the CDT in their name.Feel free to reach out if you need any assistance or further information. I'm here to help the best i can!    -@migueltmedeiros

For someone offering financial help, you've probably just given the most dangerously daft advice short of depositing cash with a Nigerian prince.

People, you'd have to be totally mad to deposit money in anyone else's name unless it's a gift.
   

    -@Fred

As a non-royal Nigerian person, I take offense this implication! 😠 Naaaah I'm just kidding  heheh 😄 But yeah most times if you give a non-trivial amount of money to the average Colombian - even if it's your in-laws - and even if it's specifically to do something non-trivial for you - consider it just gone with the wind.

Read my lips: The money is GONE.

@migueltmedeiros  Thanks so much for the advice!