Tracking CDs and fixed-term investments

[MlinMMEX]

Hello,
I am trying to add a new investment as a CD, fixed-term deposit. 6 months, etc. After that, the CD will give interest and... disappear.

How is it the best way to track it?

a) Scheduled transaction on an account.
b) Add an Asset, that later "might" dissappear, after it gets mature and ends.
c) Create a special account for it, but it can become a lot of specific accounts for each CD... Or should I stead reuse the account?[/list]

thanks you all for help to understand MMEX, and great tool!
Regards, M.

[guangong]

Hi @MlinMMEX

do you find any workaround for your CDs? seems #a is promising.

[MlinMMEX]

Hi!
Option (c) separate savings account with term in the definition, and then delete it after the expiration, when a (a) scheduled transaction with interest, commissions and taxes is split

[Nickallington]

In passing, there is a draft document for enhanced Investments functionality, and that includes specification for Bonds. CDs can be treated in the same way within that functionality, except that unlike Bonds, they are not always automatically redeemed at the end of the term. Some roll-over, and some are dropped to a lower interest flexible account instead. The spec can be looked at later and the developers can decide what, if anything, is feasible!

[MlinMMEX]

Hi @Nickallington, Thanks for following this. I will wait for the whole development then.... Best Regards, M.

[guangong]

Where is the doc? Maybe both of you can continue reviewing it.

[Nickallington]

The doc is on limited circulation by pm for preliminary review and sense testing, but I can post it if there are no more expert comments.
Nick

[Nickallington]

In passing, I would suggest to use a term account. You have to manage the funds - they don't disappear on completion of the term. So the process would be:

1. Create term account 'CD' with balance zero
2. Deposit funds in CD from bank account as a transfer
3. Create scheduled transaction for the end date of the term for the interest credit, DR CD issuer, CR CD account, Category Interest
4. Depending on what happens at the end of the term you can also create a scheduled transaction to transfer the final balance back to the account that it came from in the first place, leaving your CD account with a balance of zero.

though you might choose to re-invest it in another CD. If not, you can delete the CD account. And yes, if you have multiple CDs you will probably need multiple accounts, as if you have a lot of CDs at the same time with different institutions it might be a pain having just one account to cover all of them.
Nick

[MlinMMEX]

Thank you very much for your help! @Nickallington

<<, as if you have a lot of CDs at the same time with different institutions it might be a pain having just one account to cover all of them>>
Not my case!

[guangong]

If we want to see the total values, creating your CD products and purchasing them would be another option.

Here is an example with two CD products, 3% and 5%, three purchases, $100, $20,0, and $300.

CD_2_products.png

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CD_3buy.png

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