transaction - maturing CDs @ Schwab

Instead of "add the base bond amount to the Schwab cash account", "Sell" the bond for the "base bond amount", then skip the "remove" step.

Hi, P.

We've often griped here about Quicken's failure to handle CDs properly. But this one is new, at least to me, since I don't download transactions from brokers. (I tried it a couple of times, but spent more time correcting the downloads than simply entering my relatively few transactions manually.)

Well, a CD is not a bond, of course, and that's just one of Quicken's failures in this area. When a CD - or a bond - matures, our only real option is a Sell transaction. In accountant-speak, we credit the CD investment account and debit the account where the cash goes, which could be our checking account or the cash balance in the broker's account. It seems to me that your broker should have reported the Sell, balancing the corresponding increase in your cash balance.

Often, we just roll over the CD into a new CD. If the new CD has the same number, we can practically ignore the rollover, except for updating the "other info" (maturity date, interest rate, etc.) in Security Details. If it gets a new number, we COULD just "rename" the security, but a better treatment is to Sell the old and Buy the new, in two simultaneous but separate transaction entries. (Remember that I'm a retired auditor and still dedicated to preserving the audit trail of transactions.)

After all these years, Intuit's programmers should have been able to let us enter "live" details for CDs (not just text comments that don't affect anything) into Security Details. We should be able to enter the maturity date, interest rate, compounding or payout frequency, and other details that could actually be used in the program to calculate and record interest income, compounded balances, future cash flows, and other useful information.

But, they haven't, so we are still stuck with workarounds. :>(

RC

I may have hit the transactions with a hammer to fix it. Some other ladder CD's are coming due in the future, and will wat to see what the transactions look like and then take action & alsot let Schwab know that there may not be a balanced set of transactions at CD maturity. They are listed in my real Schwab account online history, but don't really have "action" just basically a ledger entry showing the shift from the brokerage account into the cash account along with the $132 of 6months interest.

ok - here's the captured OFX log from the CD maturing - again, there is the interes posting, the principle returned to cash, BUT no transaction for removal from the investment register, as it is still listed.

top post - well - Schwab tech support called me back...

This is the way that it works. They DO NOT REMOVE the CD principle from the investment account. Seems faulty logic - but that's the way it works..