Types of accounts

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You can set up and track activity in these types of Money accounts:

• Asset accounts (Things you own, such as real estate, automobiles, antiques, and other items that have measurable value.) For personal property and valuables or amounts owed to you other than amortized (A plan that enables a borrower to pay off a debt, such as a mortgage, gradually through periodic payments of principal and interest.) loans.
• Bank accounts For savings or checking.
• Cash accounts For out-of-pocket expenditures, petty cash, and associated cash accounts (The cash portion of investment accounts. This is a place to temporarily store cash you use to buy investments, or to deposit cash from investment sales and profits. Associated cash accounts have the same name as the corresponding investment account, followed by the word ôCashö -- for example, ôHanson Brothers (Cash).ö).
• Credit Card accounts For transactions you pay for on credit cards or with a line of credit.
• Investment accounts For securities, including stocks (Shares of ownership in a corporationÆs earnings, assets, and liabilities. Stockholders may receive dividends and can generally sell their shares at any time.), bonds (An agreement to borrow money, pay interest, and later repay money. Bonds are issued by the government and many businesses.), CDs (A certificate of deposit is a time-based deposit at a bank or savings and loan institution. When you buy a CD, you agree to leave your money in the bank for a specific period of time, ranging from 30 days to several years. In exchange, the bank guarantees you a specific interest rate which is higher than that paid on a passbook savings account.), money market funds (A type of mutual fund that invests in short-term securities, such as T-bills, and earns interest. The fundÆs share value is usually $1.), mutual funds (A collection of stocks, bonds, and other securities managed by investment professionals but owned by the mutual fundÆs shareholders. When you buy shares in a mutual fund, your money is combined with other investorsÆ money.), and T-bills (Money the U.S. government borrows and pays back within one year. T-Bills sell at a discount because they do not make interest payments.).
• Liability (Debts you owe, such as a mortgage or home-equity loan, credit card balance, car loan, student loan, or any other personal loan or obligation. Money can track credit card balances with a Credit Card Account and all other liabilities with Loan and Liability Accounts.) For amounts youÆre paying in a few installments, such as insurance premiums, quarterly taxes payable, or other amounts you owe that are not amortized (A plan that enables a borrower to pay off a debt, such as a mortgage, gradually through periodic payments of principal and interest.) loans.
• Loan accounts For amortized (A plan that enables a borrower to pay off a debt, such as a mortgage, gradually through periodic payments of principal and interest.) loans, such as home mortgage loans, car loans, and school loans.
• Retirement accounts For tax-deferred retirement plans, such as 401(k)s (Retirement plans into which contributions are made by employees and, sometimes, employers. Employee contributions and earnings from a 401(k) arenÆt taxed, but early withdrawals are.), IRAs (Tax-deferred retirement plans for anyone with employment income. IRAs offer great investment flexibility. Maximum contribution is $2,000 per year. If you have no income but receive alimony, you still qualify for an IRA contribution.), 403(b)s, SEPs (Pension plans for owners of small businesses and the self-employed. Money invested in an SEP is tax-deductible and earnings from the plan are tax-deferred.), Keoghs (Retirement plans for the self-employed. Money invested in a Keogh is tax-deductible and earnings from the plan are tax-deferred. Withdrawals from the plan are taxed.), and RRSPs (Canadian retirement plans that allow you to save on a tax-deferred basis. Amounts contributed to an RRSP are tax-deductible, and income earned is tax-exempt as long as the funds remain in place. Capital and income from the plan are fully taxable once funds are withdrawn from the plan.).

Money offers you familiar names for setting up your accounts. When you create a new account, you'll see your choices in the New Account wizard.

How do I create a new account?

What name should I give my account?

How do I set up an asset account?