A CD is not simply "putting money in the bank." Differences between institutions can mean several percentage points of return — and on amounts of $5–$20 million, that is a difference of $500,000 to $2 million per year in interest. Knowing what to compare and what questions to ask the bank can double the return on your savings without taking on any additional risk.
Institutions frequently advertise nominal rates — for example, "CD at 13% NA TV" (nominal annual quarterly deferred). Converted to an effective annual rate (the one that truly tells you how much you earn), that rate is equivalent to approximately 13.65% EAR. The difference between nominal and effective depends on how often interest is paid (monthly, quarterly, semi-annual, annual). Always ask for the EAR to compare products from different institutions on equal terms.
Generally, longer term means higher rate. A 30-day CD might pay 9% EAR while a 360-day one might pay 13% EAR. But the decision is not only about profitability: it is about liquidity. If you clearly do not need the money for 12 months, the longer CD is better. If there is uncertainty about when you will need it, a 90-day CD that auto-renews may be more appropriate even though it earns slightly less. You can also ladder: divide the money into several CDs of different terms to balance return and access.
FOGAFIN insures up to $50 million per person per institution. If you have $80 million to invest in CDs, do not put them all in the same bank. Distribute them across at least two institutions so all $80 million are fully covered. This does not reduce your return (you can get the same rate at different institutions) but maximizes your protection. Cooperatives and second-tier banks also offer CDs but are not always covered by FOGAFIN — always verify.
The market reference rate is set by the Banco de la República through its intervention rate. When this rate rises, CDs pay more; when it falls, they pay less. In 2025, with still relatively high intervention rates, CDs are particularly attractive. You can compare current rates in the Crenti simulator, directly on bank websites, or in the Superfinanciera's rate query system. Differences of 2–3 percentage points between institutions are common and represent real money.