Term Deposit account not showing reinvested interest properly

Legacy KB ID: 4734

Question

Why is ReckonAccounts 2013 (formerly Quicken) not able to show the reinvested interest on a Term Deposit investment?  I can pass the transaction and I indicate the Term Deposit as the destination for the funds, but the reinvested interest is not included in the account total.

Answer

You will experience this issue when you rollover an existing Term Deposit for the original amount plus the interest earned and pass entries incorrectly.  If you nominate the Term Deposit account as the transfer account for the interest – in effect adding the interest to the principal – the principal amount will not change.  ReckonAccounts (and Quicken) are not designed to handle reinvestment of Term Deposit interest in this fashion. 

Solution

You must leave the Transfer Account box blank when entering a Record an Income Event transaction. 

ReckonAccounts (and Quicken) will leave the interest in the Cash Balance of the Investment Account.  Cash Bal column, the Cash Balance at the foot of the Term Deposit register and the Term Deposit listing on the Accounts Bar will show the correct total of principle plus reinvested interest less any transfers. 

Use the Transfer Account box only if you are taking/transferring the interest into another non-Investment account. 

Additional Information

Create a Term Deposit Investment Account only when you have invested in a Term Deposit and enter the amount as the Opening Balance in the setup process. 

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