T-Bill Conundrum

Question

I have purchased a T-Bill at a discount, example of $39,5000.00 at a fixed invested amount of $40,000.00 to be automatic renewed at maturity.  The proceeds of $39,500.00 is withdrawn from my saving account.  At maturity the $39,500.00 is not returned to my saving account only the Interest Income is deposited to it.  Now the conundrum,  what do I do account for the $39,500.00?  I can't show it returning to my savings account as my my statement will not include this transaction.  Any thoughts on how to get this off my books?  Don't forget the renewal T-Bill will have a new CUSIP and new transaction.   I can enter a transaction for the Interest Income but not the principal/invested proceeds ($39,500.00).

I could not find the appropriate category.

bmciance · Accepted Answer

First you set up an "investment" account and transfer $39,500 to it.

Then purchase the T-Bill for 39,500.

At maturity you sell it for $39,500 and record the $500 interest in the investment account.  Transfer the interest to your savings account.

Then you buy a new T-Bill (new security in Quicken) for 39,500 in the investment account.

Tom Young · Accepted Answer

I'd say @bmciance 's answer is exactly correct.  In case you didn't understand it, you're going to receive $40,000 from the Treasury.  You record $39,500 as proceeds of the "sale" (maturity) at no gain or loss, and the extra $500 you record as interest income.