A Short-Term Bank Deposit (also called a Business Savings or Time Deposit) is money placed with a bank for a fixed period, typically less than one year, to earn interest. Unlike a regular checking account, these funds are usually not immediately available for daily operations – they are “parked” with the bank to generate a return.

From an accounting perspective, a short-term bank deposit remains a cash asset on the balance sheet. The money is still yours – it has not been spent, lent, or lost. It has simply moved from one bank account (checking) to another (deposit/savings). In the AccountingSuite Сhart of accounts, this is tracked in 11100 Short-term Bank Deposits / Business Savings.

The key distinction from a Loan Issued: you are the lender, not the borrower. The bank owes you the money back. Interest earned is recognized as 80100 Interest Income.

Note: The interest income account (80100 Interest Income) must be included in the taxable base for Profit/Corporate Tax – it is not taxed line-by-line at the time of accrual, but as part of the overall taxable profit for the period.

1. Placing funds into a short-term deposit #

When you transfer money from your operating bank account into a deposit account, the total cash position does not change. One cash asset (checking) is converted into another cash asset (deposit).

Document	Debit	Credit
Bank Transfer	11100 Short-term Bank Deposits / Business Savings
		10000 Bank Accounts (or 10011 Bank Account Currency)

The deposit is now recorded as a separate cash asset. The funds are still on the balance sheet, but tracked separately from operating cash.

2. Accruing interest earned on the deposit #

At the end of each period, you recognize the interest that has been earned but not yet received in cash.

Document	Debit	Credit
Deposit	11100 Short-term Bank Deposits / Business Savings (or a separate interest receivable account)
		80100 Interest Income

This entry increases the deposit asset and recognizes the income. When the interest is actually paid into the deposit account, the bank statement will show the increase – you may simply record it directly as a debit to 11100 and credit to 80100 Interest Income if the amount is small and accrued monthly.

Use Recurring Templates to schedule repeatable accruals.

3. Recording interest received directly into the deposit #

If the bank automatically adds interest to the deposit balance, you can record it as a simple deposit transaction.

Document	Debit	Credit
Deposit	11100 Short-term Bank Deposits / Business Savings
		80100 Interest Income

This is the most common method for small monthly interest amounts. The bank statement shows the interest credited directly to the deposit account.

Use Recurring Templates to schedule repeatable accruals.

4. Withdrawing funds from the deposit #

When the deposit matures or you need the funds back, you transfer the money back to your operating account.

Document	Debit	Credit
Bank Transfer	10000 Bank Accounts (or 10011 Bank Account Currency)
		11100 Short-term Bank Deposits / Business Savings

The cash returns to the operating account. Total cash assets remain unchanged – only the classification shifts back.