Accrued Interest


P

PRS

I am trying to enter a Bank COD that accrues interest at
4% p.a.payable at maturity. However I cant make Money
track the principal and the accrued interest.

Does MS Money use the interest rate that you input when
you set up an account? Because it only shows the
principal amount and I dont know how to make it show the
principal and accrued interest.
 
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S

Scott Tyler

PRS said:
I am trying to enter a Bank COD that accrues interest at
4% p.a.payable at maturity. However I cant make Money
track the principal and the accrued interest.

Does MS Money use the interest rate that you input when
you set up an account? Because it only shows the
principal amount and I dont know how to make it show the
principal and accrued interest.
The interest rate in "Account Details" shows up in the cash flow report, but
it's not automatically input in the account register.

It sounds like your CODs work differently than our CDs. Ours pay interest
monthly, but there is a large penalty for early withdrawal. As it's paid
monthly, we can download the interest transactions, or compute them from the
statement ($6000, $6015.08, $6029.72 on three consecutive statements is
$15.08 for the first 31 days, $14.64 for the next 30 days, etc)

If there is no kind of monthly information available, the closest
approximation may be to figure 4% for a given month, divide by 12, then add
that as the interest. It most likely won't be exact, as months have
anywhere from 28 to 31 days, but it may be close enough. You can adjust it
once a year, assuming you get some kind of annual statement for tax
purposes.
 

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