Bank charges and interest

Bank charges and interest...

Debit to its own category of expenses?

Credit interest to TBB?

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  • Hi Good Intentions !

    There is an Interest & Fees category included by default when you create a new budget. Bank charges should be categorized there so you can keep track of how much your account is costing you. Interest paid to you, should be categorized as Inflow: To Be Budgeted with "Bank Interest" (or something similar) as the payee so you can track that in reports, as well. :)

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    • Faness Thank you.  I use the name of the bank in the payee, and Credit Interest in the memo, is that OK?

      Also when I pay transaction fees on foreign currency transactions, I assign them to the same budget as that particular transaction, is that a good practice?

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    • Good Intentions Payees come down to personal preference, but the name of the bank is a nice touch since they are the ones who gave you that amount of interest! ;) 

      Assigning the foreign currency transaction to the same category gives you a view of exactly how much the transaction is costing you, including fees and there's nothing wrong with that approach! If you'd rather track exactly how much you're paying in foreign fees, then you could change the category.

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      • nolesrule
      • Been waiting 5 years for the Stealing From the Future fix...
      • nolesrule
      • 8 mths ago
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      • Reported - view

      Good Intentions I would use a generic payee. You already know which bank because of the account it's in.

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  • I have a category called "bank fees" and I assign both charges and interest to that category, so some of it cancels out. It's my personal preference, crediting interest to To Be Budgeted is just as valid if it's what feels better to you

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  • Thank you Peter Faness  nolesrule

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  • For credit interest (interest earned on savings), I put this in TBB as it’s clearer that it’s an income stream in my YNAB reports & by sitting in TBB reminds me that a portion of it needs to be budgeted to my Income Tax category to avoid a surprising tax bill at the end. All personal preference though.

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    • Blue Wildcat Thank you

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