Adding a Certificate of Deposit account

[clef]

Hi, how would you recommend adding a Certificate of Deposit. Would that be an in Investment or would you add a control account for ‘Certificate of Deposits’ and then add it in Bank and Cash Accounts? And then how do you deal with the interest, is that a monthly or annual Journal Entry?

[Syed_Salman_Ali]

@clef I hope this will be helpful to you.

Accounting for fixed deposits

Could you please let me know how to account for fixed deposits? These are amounts that gets locked in for a fixed period in the bank say 2 yrs/ 5 yrs etc and earns a interest for the said period, interest amount can be drawn monthly / quarterly/ annual or end of the term. The deposit amount to be reflected in asset.