A continuing series that describes how MProfit handles specific asset classes and how you can benefit from it.
The current value and maturity value of bank fixed deposit’s (FDs) are calculated based on the interest rate, frequency of interest payout and cumulative or payout option. MProfit has provided the option to enter transactions for partial withdrawals to take care of FDs which are linked to your bank accounts. If partial withdrawal has occured, you will need to enter the principal amount as well as the interest payout (optional) on this withdrawal.
The assumption is that the bank pays out interest on this partial withdrawal. Usually bank gives less interest for partial withdrawal as opposed to holding the FD till full maturity. After a partial withdrawal, MProfit will calculate daily gain, overall gain, current and maturity value based on your balance principal amount with the same terms of your original FD.
MProfit has provided the option to add cumulative interest in terms of FDs. Although, banks do not show this entry in their FD statement, investors may want to pass this entry for the tax calculation purposes. The accrued interest up to 31st March can be passed as cumulative interest entry in MProfit, so as to tally the balance with the books of accounts. MProfit is designed in such a way that there will not be any difference in current and maturity value of this FD even if you pass the cumulative entry at the end of any period.
Lastly, you can set the alert for the lock-in period (if any) as well as the maturity date for FDs created in MProfit.