Fixed or Term Deposits

[mfmelb]

Hi Mark,

What is the best way of recording term or fixed deposit investments?
I would like to run report on all the fixed or term deposits with their maturity date, interest rate etc. Unlike bond, its price is fixed at $1 and the interest rate is also fixed so is the maturity date.

Thanks

Matt

[Mark]

Hi Matt,

You have a couple of choices. You can record it like cash, with a fixed price of 1, and still record your maturity date, coupon rate, etc under "Investment Properties... / Income / Bond Interest". However, in this case you wouldn't want to look at coupon amounts, face value, or YTM. Fund Manager assumes a price of 100 when calculating face value, and thus coupon amounts.

Your other choice is to record these as a fixed price of 100, and divide the shares by 100 as well to keep a correct amount. Now, you are treating them just like a bond, and all the figures will be displayed correctly.