A common question is which category of cash flows deposits and loans belong to. The Online home accounting service has a special tab for recording such financial flows. It is called "debts".
Deposits and loans are, in essence, debt obligations. A deposit is money handed over to a bank under a written agreement for temporary use in return for a material reward in the form of an interest rate. In other words, it is the bank's debt to us.
A loan is the provision by a financial credit institution, usually a bank, to an individual (in this case) of money for temporary use on terms of repayment within the periods stated in the agreement, with payment of interest.
It is important that both of these loans consist of a principal and interest, which are recorded differently in the family budget. The principal of both loans is recorded in the "Debts" category. But the interest, which usually has to be paid monthly, or which is accrued on a deposit over the same period, has to be recorded differently.
The interest rate on a loan is an expense and must be recorded under the corresponding item. Most often even a consumer loan is long-term, so its payments are made over the following several months from the moment of borrowing, throughout the stated term. Therefore this type of expense belongs to regular monthly costs.
As a rule, payment is made in equal parts, each including a certain share of the principal plus interest. Taken together, such obligations should make up no more than 20% of monthly income. In that case it is exactly this income that is the source of repaying the loan. If debt obligations exceed 20%, reserve funds are used to pay them or certain expenses are cut.
As for interest on a deposit, receiving it depends on the terms of the agreement. It is accrued in equal parts monthly. But the period of time after which you can receive your funds depends on what is stated in the documents signed when the deposit is made.
If you receive interest over a certain period that exceeds a calendar month, it is best to record such income in the annual report. But if payments are made monthly, you can regularly enter them in the "Income" column. And how they are distributed when forming the expense side of the budget depends on your financial situation and needs.