CD Accrued Interest - Merrill Lynch

Paul Freedman

I bought a $50,000 CD. Merrill Recorded the purchase as 500 shares at $100. It has a maturity of about 5 years. When I look at my portfolio online it shows a value of 50,450 which is calculated as the original $50,000 plus $450 of accrued (not paid) interest.

Now if I record the $450 as an Interest transaction it shows up in my cash balance but still shows the value of the CD as $50,000. If I show it as a reinvestment transaction it asks me for the new share amount. So if I put it in as 4.50 at 100 my quicken now shows that I own 104.50 shares which creates a place holder transaction since the shares in quicken do not match the shares show by Merrill. How can I record the $450 of accrued interest with impacting my cash balance or the number of shares show.

q_lurker

I would want to know when the $450 is payable (taxable)?  I do not generally make adjustments to the valuation until the interest is paid.  I usually see a brokerage report (for bonds) Market Value, then Market Value + accrued but not paid interest.  That is, two separate valuations. 

When the interest is paid, I have used a ReinvInt transaction to increase the value of the CD.