How to enter and track a CD (certificate of deposit)

cdh_techpro

I've read a number of posts about how to enter and track a CD .... certificate of deposit .... as part of your net work in Quicken, without a complete answer. Here are my questions:

1) Some have suggested this be done with an INVESTMENT account. Quicken has instructions for adding a CD as a security (with maturity date), but how do you get the actual CD purchase (transaction) entered into your investment account (with date, dollar amount, etc.)? There is no ACTION type that represents the purchase of a CD. The other action types have fields that don't make sense for a CD (shares, share price, etc.).

2) Alternatively, if it is not a brokerage account, how can this be done?

Thanks

GeoffG

cdh_techpro said:

1) Some have suggested this be done with an INVESTMENT account. Quicken has instructions for adding a CD as a security (with maturity date), but how do you get the actual CD purchase (transaction) entered into your investment account (with date, dollar amount, etc.)? There is no ACTION type that represents the purchase of a CD. The other action types have fields that don't make sense for a CD (shares, share price, etc.).

2) Alternatively, if it is not a brokerage account, how can this be done?

Thanks

Timing is everything as I just set these up yesterday.

You do want to set up a manual brokerage account and provide the info shown below.

I will be creating a CD ladder so the register below will show five CDs.

To fund the CD account, you need to transfer funds from say, checking to CD Account. This creates the Cash balance the CD or CDs will draw down from. When purchasing a CD, enter them directly in the register as shown above. The number of shares represents the dollar amount for the CD and the price like a MMF will always be $1.

GeoffG

cdh_techpro said:

 I was wondering, how are you going to record the interest received in such a way that it reflects the CD that earned it? Would you just add $1 shares for that security (quantity equal to the interest earned)? Also, do you record the CD account number somewhere since it is a security and not an account? Finally, if you are going to have CDs from different financial institutions, would you create an account for each institution, or just a bucket account for all CDs?

Thanks!

" I was wondering, how are you going to record the interest received in such a way that it reflects the CD that earned it?" From the register, directly enter IntInc and selecting the CD as if it were a security, as can be seen below.

The amount and frequency is dependent on the terms of the CD and entered accordingly for each CD 1, CD 2..etc. IntInc is not a purchase, it is interest and does not purchase additional shares.

"Also, do you record the CD account number somewhere since it is a security and not an account?". That can be done either as a memo item, or in other info. Whichever you decide.

" Finally, if you are going to have CDs from different financial institutions, would you create an account for each institution, or just a bucket account for all CDs?". Entirely up to you. If it were me, I would create separate brokerage accounts for each different FI.

NotACPA

Enter the CD as if it were a BOND into an Investment account.

q_lurker

If you choose not to enter it as an investment (brokerage) account, you can enter it as a Savings Account.  You'd transfer funds from the original source (checking account?) to the CD Savings account and subsequently record interest earned as it accrues.

As an investment account, you create a security (CD-3%-10/15/2020 or similar) and buy shares of that security at a rate of $1/share or $100/share, or whatever else you choose.  I think there may be a standard security type "CD" for that type of investment.  

cdh_techpro

Thanks, NotACPA. However, when doing a "Bonds Bought" transaction, it asks for .... NUMBER OF BONDS and PRICE. But, you cannot use "1" as the number because the price has "(base 100)". Using this ACTION will force you to fudge the numbers to come to the correct total CD transaction.

GeoffG

cdh_techpro said:

1) Some have suggested this be done with an INVESTMENT account. Quicken has instructions for adding a CD as a security (with maturity date), but how do you get the actual CD purchase (transaction) entered into your investment account (with date, dollar amount, etc.)? There is no ACTION type that represents the purchase of a CD. The other action types have fields that don't make sense for a CD (shares, share price, etc.).

2) Alternatively, if it is not a brokerage account, how can this be done?

Thanks

Timing is everything as I just set these up yesterday.

You do want to set up a manual brokerage account and provide the info shown below.

I will be creating a CD ladder so the register below will show five CDs.

To fund the CD account, you need to transfer funds from say, checking to CD Account. This creates the Cash balance the CD or CDs will draw down from. When purchasing a CD, enter them directly in the register as shown above. The number of shares represents the dollar amount for the CD and the price like a MMF will always be $1.

NotACPA

If you bought a $10,000 CD, enter it as 10 bonds (i.e. 1 bond per $1,000).  See Q Help for further info on buying bonds. 

cdh_techpro

> @GeoffG said:
> (Quote)
>
> Timing is everything as I just set these up yesterday.You do want to set up a manual brokerage account and provide the info shown below.(Image)
> I will be creating a CD ladder so the register below will show five CDs.
> ....

Thanks @GeoffG . Very cool idea. I was wondering, how are you going to record the interest received in such a way that it reflects the CD that earned it? Would you just add $1 shares for that security (quantity equal to the interest earned)? Also, do you record the CD account number somewhere since it is a security and not an account? Finally, if you are going to have CDs from different financial institutions, would you create an account for each institution, or just a bucket account for all CDs?

Thanks!

GeoffG

cdh_techpro said:

 I was wondering, how are you going to record the interest received in such a way that it reflects the CD that earned it? Would you just add $1 shares for that security (quantity equal to the interest earned)? Also, do you record the CD account number somewhere since it is a security and not an account? Finally, if you are going to have CDs from different financial institutions, would you create an account for each institution, or just a bucket account for all CDs?

Thanks!

" I was wondering, how are you going to record the interest received in such a way that it reflects the CD that earned it?" From the register, directly enter IntInc and selecting the CD as if it were a security, as can be seen below.

The amount and frequency is dependent on the terms of the CD and entered accordingly for each CD 1, CD 2..etc. IntInc is not a purchase, it is interest and does not purchase additional shares.

"Also, do you record the CD account number somewhere since it is a security and not an account?". That can be done either as a memo item, or in other info. Whichever you decide.

" Finally, if you are going to have CDs from different financial institutions, would you create an account for each institution, or just a bucket account for all CDs?". Entirely up to you. If it were me, I would create separate brokerage accounts for each different FI.

cdh_techpro

Thanks @q_lurker and @NotACPA for your ideas. And, thanks @GeoffG for the answer that worked best for my needs. Appreciate everyone's input and help!