Need some Quicken Help - Entering a CD

[Cut-Throat]

I have never entered a simple CD in Quicken Before. I want to put it in an Investment Account. I thought this would be a 'no-brainer', but I have searched the Quicken Help and it is basically useless.

Has anyone done this and figured out how to record the CD, interest etc.

 

[AltaRed]

Cut-throat, I use a Canadian version of Quicken, but the US version should be similar. Go to Investing on your menu, then pick Security List and then you can add a New security. The new security dialog box will allow you to enter what you need.

 

[Cut-Throat]

Alta,

Yes, I was at this screen once. What 'Ticker' symbol did you use for your 'CD'.

And then when you go to your Account register, what transaction did you enter for the CD? - 'Purchase a Bond' looks like the only thing close to me.

 

[Nords]

One way.

I thought this would be a 'no-brainer', but I have searched the Quicken Help and it is basically useless.
Has anyone done this and figured out how to record the CD, interest etc.

Yup, Quicken's Help files need a lot of... well, help.

You don't get to enter the CD's interest rate in a dedicated window because Quicken won't automatically calculate the CD's periodic accrual. (Unlike mortgages.) Every time the credit union coughs up an interest payment you have to "ReinvDiv" the shares in the investment account. (If anyone knows how to make a CD rack up its own dividend payments, I'm ready to learn!)

I guess you've probably figured it out by now (or found a better way), but as AltaRed says here's what my Quicken 2003 offers:

The CD setup screens will ask for an investment account, which is entered from CTRL-A and then "New". Or maybe you'll already have an investment account ready to add the CD.

Once you have an investment account ready, then go to the Securities list (CTRL-Y),
Click "New" and select "CD" from the pop-up window, then "Next",
Enter the name of the CD (the ticker window should stay grayed out). I include a maturity date & interest rate as part of the name so that it displays on summary screens without me having to guess. Then "Next",
Enter the Asset Class as "Cash" and the Investment Goal as "Income" (if you care, or otherwise the pie charts don't come out right), then "Next",
You're probably going to choose "Track My Holdings" and the purchase date, then "Next",
Use the scroll list to select the investment account, then "Next",
Enter the number of shares and cost per share (I use $1), then "Next",
Enter a maturity date, then "Next", then "Next" again to confirm, then "No" to finish, then "Done".

FWIW, if you highlight the CD in the Securities list and select "Edit", the window that pops up has an "Other Info" choice where you can enter free text.

"Simple", no?

 

[Cut-Throat]

You're probably going to choose "Track My Holdings" and the purchase date, then "Next",
Use the scroll list to select the investment account, then "Next",
Enter the number of shares and cost per share (I use $1), then "Next",

Nords,

Thanks for the info. I think we may different Quicken Releases. Im running 2004.

It never asks me to track my holdings. I can enter the Security of "CD" on the security list. But then I'm forced to go the Investment account itself. This is where I'm confused. I have to enter a transaction to get the CD into the register. The only thing I can come up with is "Bonds Bought"

 

[AltaRed]

Maybe newer versions of Quicken don't work the same. I use 2002 version and I do exactly what Nords does for CD's (or in Canada called GIC's).

Seems to me 'Bonds Bought' might be your only solution. It seems bizarre Quicken would take away a process most people would be using (e.g. CD's) but then Quicken has been known to do bizarre things.

FWIW, I never go to an updated Quicken package until they tell me I can no longer do auto price updates any more (another way to force obsolesence).

 

[thebacchus]

If the money going into the CD is from another account (ie. checking or savings) you can transfer the money from that account in Quicken to the new investment account you set up. That way it doesn't show as an expense that month from the account you are transfering as well. (If this was transferred many moons ago, you can back date as far as you like. Much like you would transfer 401K or IRA contributions as you catagorize your deductions when entering deposits.

This will create the entry in the new account and the amount will be sitting as a cash balance without creating a security. I don't know of a way to calculate the future interest, but will play with it as I am updating year end account statments when they arrive over the next couple of weeks.

For the most part, we enter purchases, sales, dividends, cap gains etc., after the fact from statements and then update security prices as of the satement date in the portfolio view which gives you accurate cost/value trending and graphs.

-TheBacchus

 

[AltaRed]

P.S. Nords, I tend to use $100 per share, aka bonds

 

[Cut-Throat]

The Baccus,

You are correct. It just shows it as a cash balance. However, What I am trying to achieve is to show it as a security that is earning money that will be averaged in to my overall portfolio return. Transferring Cash won't do that.

Alta,

Yup, Quicken completely redid their Investment Register entry - I think it may have been in 2003. When you upgrade, it will throw you for a loop!

I think I'll go the Bond route. I too do not update Quicken anymore. I used to because I was using the tax planner. But Quicken's tax planner does not calculate capital gains correctly. Still treat it as ordinary income. I reported the bug over a year ago. They don't fix them!

 

[AltaRed]

Cut-throat, no doubt I will be surprised when I do upgrade.

Quicken drives me crazy in other ways too as it does not handle foreign exchange properly most times and for us Canadians who typically have many US or International investments denominated in currencies other than the Cdn $, it's problematic.

Another option to a bond for CD's that pay interest annually, if you primarily want to register income when it arrives and have it included in your investment returns, is to assume a Money Market mutual fund for your CD and price the units at $100 as you would a bond. Then when the interest arrives, simply book it.

 

[thebacchus]

CT,

Yeah, 2003 was a definate change.

You will need to create a transaction to "buy" then if you want to track it that way. I do a similar thing with a money market account I have in our brokerage account. We buy and sell the security at a $1 share price, therefore the number of shares and the values are always the same.

I just tried entering the transaction as a CD. I used "buy" and when I set up the security, it has an option under type for CD, and you can then set the asset class as cash. You may also be able to project the income in reports if you fill in the estimated income? Not sure about the last one as I don't use the estimated income portion.

We use the reinvest dividend so we can add the interest to the account and increase the number of shares with only a one line entry.

-TB

 

[cute fuzzy bunny]

Burn your copy of quicken.

Laugh maniacally.

Assume whatever the bank tells you you've got and what its worth is what you have.

Go fishing.

Rinse and repeat as necessary.

 

[FunGoals]

When entering a CD in Quicken I enter it into the Cash Flow Center as a savings account & then MOVE it into the Investing Center.
Interest is entered thru online updates or through a scheduled transaction which is manually updated.
Tracking the account is done thru categories & sub categories.