Interest Payments

[Mike or Penny Novack]

>
>Compounded daily and there are a different number of days in each month...
>  
>
Precisely because there are so many ways it could be being done and all 
sorts of specifications in the fine print of the (implied) agreement 
with your bank this is not a good candidate for "Gnucash does 
computation and then compares (reconciles) to transaction of interest 
credit as reported by the bank". It would simply take too many options. 
To give perhaps the simplest "complication" -- the DATE of the crediting 
could vary (while the rate computed as per agreement, many mutual 
savings banks don't actually credit the interest earned until the board 
declares it!. So the date of interest credit fluctuates somewhat).

Keep in mind that YOUR date entries (when you made bank deposits) and 
the bank's might differ and so affect the daily balances (deposits after 
X time of day credited next business day would be an example). Similarly 
with an interest bearing checking accounts, your account shows daily 
balances according to the dates the checks written but the banks 
according to when they were presented.

I would suggest you NOT try to "reconcile" this item. Simply enter the 
transaction for interest when you get that from the bank statement. By 
all means if you doubt the accuracy of the bank's calculation, do a spot 
check. Just realize that the most likely cause for small discrepancies 
would be the result of your misinterpretation (not agreeing on the 
interpretation) of your agreement wit the bank about exactly how 
interest will be calculated.

Michael

-- 
There is no possibility of social justice on a dead planet except the equality of the grave.