Compound Interest

[rdg]

I have recently purchased some compound interest CD's / GIC's and can't find how to enter them. I put them in as bonds and completed the income summary, but the bond report treats the payments as "simple interest" and understates values beyond the first year.
Is there something that can account for the compounding effect?

[Mark]

Hi rdg,

We don't have anything special for these. Do these work in a way where your interest is reinvested, and counts as principal going forward? If so, you can just record your interest payments as reinvested when you receive them. You can just treat these investments like cash, that earns interest if you want. You do not need to record the income summary information if it is not meaningful.

[rdg]

It's similar to "reinvesting" the interest, but the total payment is due at maturity.
The Income Sheet with the Bond Summary report was / is a good way to track accrued value and maturity dates.