Investing in Colombia: Rates, CDTs and Bonds

With one of Latin America's higher interest rates, investing in Colombia can put real yield on your savings — if you understand the peso risk. Here is a plain-English guide to the rate, the main instruments, and how a foreigner gets started.

Start with the central-bank rate

The Banco de la República, Colombia’s central bank, sets the benchmark interest rate, and in mid-2026 it stands at 11.25%, among the higher policy rates in the region. The bank held the rate there after raising it earlier in the year, with inflation running near 5% against a 3% target, and it reviews the decision roughly every six weeks.

That single number ripples through everything a saver can buy, from bank deposits to government bonds, because lenders price their products off it. Watching the rate, and the inflation path the bank is reacting to, is the starting point for understanding why Colombian yields look so high on paper.

CDTs: the simple option

For a newcomer, the easiest instrument is the CDT, the certificado de depósito a término, a fixed-term bank deposit much like a certificate of deposit elsewhere. You lock a sum away for a set period, perhaps 90, 180 or 360 days, and collect a fixed rate of interest at the end, with most banks offering them from low minimums and a straightforward online process once you have an account.

Because a commercial bank carries more credit risk than the government, CDTs usually pay a little more than government bonds of similar maturity. The interest is subject to Colombian withholding tax, and the trade-off for the headline rate is that your money is committed for the term.

TES and the yield on offer

For government debt, Colombia issues bonds called TES, and their yields show just how much the market demands to hold pesos: ten-year TES have recently traded around 13%. Retail investors usually reach TES through a brokerage or a fixed-income fund rather than buying directly, which also spreads risk across maturities.

Both CDTs and TES reward you for taking peso risk, and that is the essential point: the high numbers are compensation for inflation and currency uncertainty, not a free lunch. Comparing the CDT and TES rates for the same maturity is a quick way to see the extra yield you earn, and the extra issuer risk you take, by choosing a bank over the government.

Taxes and the real return

The headline yield is not what you keep. Interest is taxable in Colombia, with withholding applied at source, and your overall position depends on whether you are a tax resident and on any obligations back home.

More importantly, returns are in pesos, so you must subtract inflation, near 5%, and account for the currency: a 12% peso yield set against a peso that weakens against the dollar can translate into a far smaller gain, or even a loss, measured in your home currency. The discipline is to think in real, after-tax, currency-adjusted terms rather than being dazzled by the nominal rate.

For dollar-based savers, hedging or simply sizing the position modestly keeps the currency risk in check.

How a foreigner gets started

Practically, you begin by bringing money into Colombia through a bank so it is traceable, and for larger sums registering it as foreign investment with the central bank, which keeps a clean trail for taking profits out later. With a local account you can open a CDT online in minutes, while TES and bond funds run through a licensed broker or your bank’s investment arm.

Treat Colombian yields as one slice of a diversified plan rather than a place to park your life savings, and get local tax advice on withholding and reporting, since the rules differ for residents and non-residents. Started sensibly and sized prudently, Colombia’s high rates can add real income to a balanced portfolio.

More: Colombia news in English, every day from The Rio Times.

This guide is general information, not legal, tax, immigration or financial advice. Colombian rules change often, so confirm current requirements with official sources — the DIAN, Migración Colombia, the Cancillería and the Banco de la República — and consult a qualified Colombian lawyer or contador before acting. Information is current as of June 2026.

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