How To Model A CD (Certificate Of Deposit)
How do I model a CD (certificate of deposit)?
CDs should be modeled in the Additional Cash Inflows section. When the CD matures the money will flow into the taxable accounts pro-rata based on their balances at that time. The CD below matures one year from now (it was bought a year ago). The owner paid $10K for the CD and it returns $14K two years later, which is roughly a 2% annual yield.
