Hello,

Can someone please advise how I can process a GIC (Guaranteed Income Certificate) in KMM?
It's a fix-term (most the time) investment over a given time with interest payment either periodically or at the end of the investment period.
Almost like a loan just the other way. I'm receiving interest and not paying it.

Any ideas?

Any help is much appreciated.

It sounds like what would be called a CD (Certificate of Deposit) in the US.
I would probably just treat it as a savings account. You can either just enter the interest payments manually when they are made, or create a scheduled transaction for them. You could also treat it as a loan you make instead of a loan you take, with the principle paid at the end of the term, since you don't really have access to those funds during the term of the certificate, but I personally would consider that adding unnecessary complexity.

in the meantime I have work-around in creating a 'sub-account' of the brokerage account for each GIC.
Transferring in the interest paid by the bank. It seems to work that way but quite cumbersome handling the fields 'pay from' and 'category'.

Would be nice to have the GIC's as a independent entity like the investments because that's what it is.
Cheers

I see it as much more like a loan or savings account. Investments not only pay interest, but the value of they underlying security changes. The only way the value of the currency of a GIC would change is if it is not in your base currency.

ostroffjh wrote:I see it as much more like a loan or savings account. Investments not only pay interest, but the value of they underlying security changes. The only way the value of the currency of a GIC would change is if it is not in your base currency.

... the underlying security changes... -? that would be a mutual fund, not a Guaranteed income Certificate (GIC).