[GNC] How-to question: CD Interest payments deposited in a different account

Art Chimes arts.online at gmail.com
Mon Feb 18 22:04:54 EST 2019


I have been trying to learn GnuCash for several months now, and I am
apparently dumber than I thought. I am pretty good at keeping my checking
account, but I find more complex actions more challenging.

For example, I bought a CD (cert. of deposit) last year, and it resides in
my brokerage account. Each month it pays me a small amount of interest,
which is automatically deposited in my checking account. When the CD
matures I will get my original money back.

As I learn GnuCash I am still using Quicken (Q 2000!) and in that program
it is a simple matter there to record the interest+transfer event as an
IntIncX (interest income transfer) transaction. But I am stymied in an
effort to correctly record this kind of transaction in GnuCash.

I have searched GnuCash resources extensively but I keep getting sent back
to an unhelpful example in which the earnings accrue to the CD, to be paid
out at the end of the term. (e.g.
https://www.gnucash.org/docs/v3/C/gnucash-guide/invest_int1.html)

Do I create a split transaction that shows the interest income increasing
the value of the CD's asset account and simultaneously being transferred to
the checking account? I tried this without success, but I am still pretty
rocky with splits.

I imagine the procedure is analogous to handling period bond interest
payments, or mutual fund dividends, etc., but again I am apparently not
smart enough to find resources that I can use. (It seems the documentation
— like in Quicken — is not very robust for fixed-income investments.

I really want to move away from Quicken, but right now I am maintaining
parallel sets of books as I try to get comfortable with GnuCash. Thank you
for any help you can provide.

Art

PS - I'm a noobie ... please be gentle!


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