Savings Account Entries

[Mike or Penny Novack]

On 3/2/2015 6:24 PM, Alice Lee wrote:
> The credit goes to Dividend Income, the debit goes to your savings account.
No, it goes to "interest income".

Although some savings banks are organized so that they call it 
"dividends" (meaning their board votes it each time) rather than 
"interest", at least in the US and all of our states, this is considered 
bank interest income and not dividend income.

Can make a tax difference. For example, here in Massachusetts bank 
interest is taxed at a different rate than "dividends" plus there is an 
exclusion for a certain amount of interest from in state banks and 
savings banks.

Michael D Novack