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September 22, 2023
Question

Splitting a bank transaction into an interest income and a transfer of (portion of) invested principal

  • September 22, 2023
  • 1 reply
  • 4 views

I have a certificate of deposit with 10k in it. Say over time it generates 300$ in interest income.

 

At the time of CD renewal I decide to reduce the investment, so I transfer the interest and part of the principal (say, 2k) back to my main checking account. So I see a bank transfer of 2,300$ to the checking account. CD account now has 8k in it.

 

I need to properly categorize this transfer into what it is: a $300 interest income and a 2,000$ transfer from the CD account to the checking account.

 

What's the best way to accomplish this? Note that my bank transactions are automatically downloaded from the online bank.

1 reply

Level 8
September 22, 2023

Hey there, @AlanB8

 

Thanks for stopping by the Community and giving us some details about your question. 

 

To receive the best answer, I recommend consulting with your accountant. They'll be able to give you the advice you need based on the type of business you run. 

 

Keep us updated on how the conversation goes with your accountant. We want to ensure that you're taken care of as soon as possible. Have a great day!