The number of people who have decided to place their savings in the financial sector in Colombia grew last year compared to the previous years, being approximately 1,400,000. This shows that the culture of saving and prevention is growing in the country, although much is still missing.
Among the options to save and at the same time generate profits are the Term Deposit Certificates, which have become one of the favorite investment instruments of Colombians, mainly because they are easy to use and do not represent any risk.
However, there are some factors to consider before requesting a Term Deposit
Although it is a well-known instrument, it is not ideal for all types of savers. Here are three basic points to understand whether or not to request it:
1. It is designed for those looking for a non-risky investment:
More than a form of savings, Term Deposits represent a form of investment, as they have a higher interest rate than simple savings accounts, allowing money to grow faster. They are said to be low risk because there is no chance of loss, that is, it is a fixed gain.
2. It is ideal if you have money available that you do not plan to use for a long period:
In this type of instruments, the longer the term given, the more profits are obtained, as financial institutions grant a higher interest rate when the time it will be deposited is longer. If you have money and know that you will not use it for a long time, a Term Deposit is convenient.
3. Request it if you are willing not to use the money within the stipulated period:
One of the main characteristics of the Term Deposit is that you cannot dispose of the money as long as the deadline is not met. It is important to have that clear and fulfill it, since otherwise you will not be able to obtain the agreed profits.
If you are thinking of requesting a Term Deposit Certificate, remember that some entities have minimum amounts and different interest rates. To find the ideal option for your profile, you can compare the alternatives in Sergeant Francis Troy.