I linked an M1 account in YNAB and have a inflow transaction for interest. How would I categorize that if I reinvest the returns?

is this an investment account or a checking/savings account? If it's investment, I recommend you don't link it to YNAB. if its a checking/savings that interest would be ready to assign, and you shouldn't have returns that you are reinvesting.

Hey Pessi! When you get interest from an investment and it gets reinvested, you can handle it in YNAB like this: 1. Add the Investment Account: First, make sure you have your investment account added as a tracking account in YNAB. 2. Record the Interest: When you receive interest, record it as an inflow to the investment account. 3. Categorize the Inflow: Since the interest is being reinvested, you can categorize it as 'Inflow: Ready to Assign'. This way, it shows up as income in your budget. 4. Reinvest the Interest: If the interest is automatically reinvested, you don't need to do anything else. If you manually reinvest it, record the transaction in the investment account as an outflow to the same category you used for the inflow. This keeps your budget accurate and shows that the interest was received and reinvested.

It's a high yield savings account. So I think I mixed up the terminology, but it definitely accrued a certain amount of interest that I want to keep in the account (for now)

Categorize it as ready to assign and then move the money into one of your goals

Great, thanks

@mysterious-tomato-10057 Why not categorize the interest as going back into that same account in YNAB? assuming there is a category in YNAB representing this savings account

Category and account are independent. The interest absolutely should remain in the account for the savings account. The question I am answering is what category to apply to that transaction that is present in the account.