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Investing in CDTs vs Stocks in Colombia

5 min readN17

In Colombia you have two ends of the spectrum when it comes to growing your money: the CDT (certificate of deposit), predictable and guaranteed, and stocks on the Bolsa de Valores de Colombia (BVC), with higher potential but real volatility. Neither is universally better — the right answer depends on when you need the money, how much you can afford to lose temporarily, and what your investment horizon is. What is certain: with inflation around 6–7% annually, not investing anything guarantees a loss of purchasing power. Here is how each option works with real Colombian figures.

CDT: the low-risk option with predictable returns

A Certificado de Depósito a Término (CDT) is an instrument issued by banks and cooperatives supervised by the Superfinanciera. You deposit your money for a fixed term — 30, 60, 90, 180, or 360 days — in exchange for a guaranteed interest rate set from day one. In 2026, with the Banco de la República's intervention rate still at relatively high levels, CDTs are paying between 11% and 14% effective annual rate (EA) depending on the institution and term. Both principal and interest are guaranteed by FOGAFIN up to $50,000,000 per person per institution, making this instrument virtually risk-free for amounts within that limit. The drawback is illiquidity: your money is locked for the agreed term, and while some CDTs allow early redemption, it typically comes with a rate penalty. CDTs are ideal for: money you will not need in the next 3 to 12 months, concrete goals with a known date (down payment, trip, planned purchase), and conservative profiles that prioritize certainty over maximum return.

Stocks and funds: the capital markets in Colombia (BVC)

The Bolsa de Valores de Colombia (BVC) allows you to buy shares in publicly listed Colombian companies such as Ecopetrol, Bancolombia, Grupo Nutresa, Grupo Éxito, or Cementos Argos. The historical long-term return of Colombian equities has ranged between 10% and 20% annually over 10-year periods, but with significant year-to-year volatility: in 2022 the COLCAP index fell more than 15%, and in strong years it has risen more than 30%. The main access channels are: Valores Bancolombia (the Bancolombia Group's digital platform), Davivienda Corredores, and platforms like Tyba or BTG Pactual Colombia. You can also access the market through variable-income Fondos de Inversión Colectiva (FIC), which spread risk across multiple stocks. Variable-income FICs have lower minimum investment amounts (from $100,000 in some cases) and are ideal if you want exposure to the equity market without picking individual stocks. The key rule: stocks are not for your emergency fund or for money you might need within 3 years.

How to choose based on your risk profile and time horizon

The practical rule is simple: your investment horizon determines how much risk you can take on. If you need the money in less than 3 years, a CDT is the right choice — in that window, a stock market downturn might not recover in time and you would have to sell at a loss. If your horizon is 5 years or more, you can incorporate stocks or variable-income funds, because time erases most short-term volatility. There are three typical profiles: the conservative profile (prioritizes not losing, short horizon, CDTs and fixed income); the moderate profile (accepts some volatility for higher return, mixes CDTs with balanced FICs); and the aggressive profile (long horizon, accepts sharp annual swings in exchange for maximizing long-term return, concentrates in stocks and variable-income FICs). Before choosing, answer this question honestly: if your investment drops 20% in one year, can you wait without selling? If the answer is no — either because of liquidity needs or emotional stress — the CDT is your path.

The optimal combination: why you do not have to choose just one

The most effective investors do not choose between CDTs and stocks — they build a portfolio that combines both according to their situation. The basic structure recommended for a middle-income Colombian has three layers. First: the emergency fund (3 to 6 months of fixed expenses) in a liquid savings account or 30-day CDT. Second: medium-term goals — down payment, education, a business in 2 to 5 years — in CDTs with a term aligned to each goal. Third: long-term wealth building — retirement, estate goals over 10+ years — in a balanced or variable-income FIC. This structure not only maximizes the risk-adjusted return for each goal's horizon, but also reduces anxiety: emergency money never touches the stock market, and long-term investments do not create pressure to sell when the market dips. Starting with the first two layers and adding the third once the emergency fund is complete is the natural progression.

Key takeaways

  • CDTs in 2026 pay 11–14% EA guaranteed by FOGAFIN up to $50M — ideal for short time horizons.
  • Colombian BVC stocks have a historical return of 10–20% annually but with real volatility.
  • Horizon under 3 years: CDT. Over 5 years: you can incorporate stocks or FICs.
  • Build your emergency fund first, then medium-term goals, then long-term investment.
  • Variable-income FICs give access to the stock market from $100,000 with built-in diversification.
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