If you have money you are not going to use in the short term, you essentially have two options in Colombia: leave it in a savings account or put it in a CD (Certificado de Depósito a Término). Both are safe — backed by FOGAFIN up to $50 million per person per institution — but they work very differently. The right choice depends on when you need the money and how much you want to earn from it.
With a savings account you can withdraw your money at any time. That convenience has a cost: interest rates are very low, generally between 1% and 4% per year. In 2025, with inflation around 5–6%, keeping money in a traditional savings account means losing purchasing power in real terms. It is useful for keeping emergency money available, but not for saving in the medium or long term.
A CD (Certificado de Depósito a Término) asks you to leave your money untouched for a fixed term: 30, 60, 90, 180, or 360 days. In exchange, banks pay much higher rates: in 2025 these range between 10% and 14% per year, depending on the institution and term. The money is not available during the term, though some institutions offer CDs with an early redemption option (with a penalty). When it matures, you receive your principal plus interest.
Both products are insured by the Fondo de Garantías de Instituciones Financieras (FOGAFIN). This means that if the bank fails, the government guarantees you up to $50 million per institution. If you have more than that, it makes sense to distribute it across different institutions to maximize coverage. This guarantee makes CDs and savings accounts the safest options in the Colombian market.
Use the savings account for your emergency fund — money you might need tomorrow. Use a CD for money you know you will not touch in the next 3, 6, or 12 months: a down payment, a planned vacation, or simply to make savings work harder. If you have $5,000,000 sitting in a savings account for a year at 3%, you earn $150,000. In a CD at 12%, you would earn $600,000 — four times more.