Why is Transfer Out of Money Market Savings to CD an Expense?

Question

BACKGROUND:
 On my Quicken dashboard I have the Income and Expense graph and the Stay on top of Monthly Bills" summary.

I have a bank Money Market account. I keep my checking account balance near what I expect to spend in the next 6 weeks by transferring to the bank Money Market account. Over the past few years of low interest rates, the MM and CD rates were similar. Now with the significant rates on CDs I used funds from the Money Market account to buy a CD paying a nice rate of return. Based on my analysis those funds will not be needed for expenses in the near future. The intermediate funds in the CDs will be used to pay for maintenance on the house in a few years.

QUESTION:

Now the Income and Expense graph and the Stay on Top of Monthly Bills show that I am at risk of a default because of the "expense" of the transfer of funds between two savings accounts. I have the MM and CD marked as Savings accounts. So I don't think transactions between those accounts should be classed as expenses. How do I change these accounts so that they are not included in the calculation of 90 day expenses?

Boatnmaniac · Answer

You can click on the Gear icon at the top right of the report to bring up the Customization popup.  Then on the Advanced tab you can select which types of transfers to include or exclude.  You can read more about the transfer options in the following post thread:  Re: Transfers - including/excluding.

If you elect to include transfers on the Advanced tab, you can elect to exclude or include specific transfers in the Categories tab….check or uncheck the boxes for [XXXXX] transfer categories as desired.

Also, if you elect to include transfers on the Advance tab, you can elect to exclude or include specific accounts in the Accounts tab.  For instance, if you do not want any transactions included for Savings Account 123 in the report, uncheck the box to for that.

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unknown · Answer

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