Interest (Transaction)
An interest transaction records interest income received from bonds, savings accounts, P2P loans, or other fixed-income instruments. It represents the portfolio-level impact of an interest event.
🔑 Key Properties
| Property | Detail |
|---|---|
| Code | INTEREST |
| Cash effect | ⬆️ Increases balance |
| Asset effect | — (principal unchanged) |
| Tax event | Yes (taxable income) |
📊 Interest Sources
| Source | Description | Frequency |
|---|---|---|
| Bond coupons | Fixed or floating rate payments | Semi-annual / Annual |
| Savings interest | Interest on cash deposits | Monthly / Quarterly |
| P2P loan payments | Interest portion of loan repayments | Monthly |
| Crowdfunding returns | Fixed-rate returns on projects | Varies |
💡 When to Use
Use an INTEREST transaction when cash arrives in your broker account as interest income. This is distinct from:
- Dividend — income from equity (stocks, distributing ETFs)
- Maturity Settlement — return of principal at bond maturity
Theory & formulas
For the mathematics of interest accrual (simple vs compound, day count conventions, yield metrics), see:
- 📈 Interest Events — Accrual mechanics and price impact
- 📅 Day Count Conventions — How interest periods are calculated
🔗 Related
- 📈 Interest Events — Accrual and coupon mechanics
- 🏛️ Bonds — The primary interest-bearing asset
- 📈 Returns & Growth Rates — Measuring income return
- 📅 Day Count Conventions — How interest periods are calculated