Managing CD

droopydog53 Member ✭✭✭
edited March 2023 in Investing (Windows)
I would like someone to validate my process. I have chosen to do this manually. I have read a lot of the articles and understand how to create the securities and the accounts but I couldn't find anything really that explained the proper "daily" process to manage the account. I am looking for the most correct and efficient way. I have broken down the process into its basic steps. Thanks in advance!

I have two CDs (one 6 mo and one 12 mo) that I got through my bank. In Quicken, I added each CD as an individual security (named as the duration and the last couple #s of the account). I then created a brokerage account and named it the same as the bank. The first transaction was a "cash transferred into account" transaction, i.e. a cash transfer from another bank account to the bank that sold me the CDs. Then the next transaction is a "Buy - Shares bought" transaction. In this transaction I entered the individual security name, followed by the price paid. For the purposes of this, the number of shares = the amount of money that I put into the CD and the price paid is $1.00. Then when it comes time for the monthly reconciliation, I find the interest earned and select "Inc - Income (Div, Int, etc.)," I select the correct security and enter the interest earned for the month in the interest box and click done. Then to actually reconcile the account, I select "Reconcile" and add the ending cash balance and go through the normal reconciling process.

Do I have that correct?

What do I do with the resulting interest?

Is the account supposed to have a positive cash balance (i.e. the interest) or is there another transaction that I am supposed to make??

Is this process the same for an index fund? Cash in, followed by a bought, followed by a reconcile....


  • Jon
    Jon SuperUser, Mac Beta Beta
    edited February 2023
    I always treat bank CDs like savings accounts. The interest gets recorded just like savings account interest gets recorded, whenever it gets credited to the CD. When the CD matures, if I don't roll it into another CD then I transfer the money out to wherever it goes & close the CD account.

    If I purchased a CD in the secondary market inside a brokerage account, I might do something more like what you're describing.

    Quicken Mac subscription. Quicken user since 1990.

  • droopydog53
    droopydog53 Member ✭✭✭
    Thanks for your insight! Your method is a cleaner approach than the one I outlined.
  • Intuit needs to add a function to create a CD in a savings account. this is not available at this time
  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
    Intuit needs to add a function to create a CD in a savings account. this is not available at this time

    WHY? A CD is a security   and should be treated as such.

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited February 2023
    When I owned CDs, I typically used the 'security' approach but used a Reinvest Interest action at the $1.00 / share rate.  "Shares" sold @ $1.00/share upon maturity. 

    If I had a ladder of 10 CD's, I think I'd rather have 10 securities in one account rather than 10 accounts.  Greatly personal preference.  
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