accrued interest

Meanings

1. 1noununcountable

   Interest that has been earned or charged over time but has not yet been paid out or received.

   Grammar: Uncountable; used with 'some', 'any', 'the', or no article. Do not say 'an accrued interest'.

   Patterns

   • pay accrued interest
   • accrued interest on a loan
   • accrued interest of $100

   The bond pays accrued interest when it matures.

   You must pay the accrued interest before you can reduce the principal.

   The account shows $50 in accrued interest.

2. 2noununcountabletechnicalfinance

   In accounting, interest that has been recorded as earned or owed even though cash has not yet changed hands.

   Grammar: Used in financial statements; often appears in the phrase 'accrued interest payable' or 'accrued interest receivable'.

   Patterns

   • accrued interest payable
   • accrued interest receivable
   • record accrued interest

   The company recorded accrued interest payable at the end of the year.

   Accrued interest receivable appears as an asset on the balance sheet.

Common combinations

accrued interest on a bond

The accrued interest on the bond is calculated daily.

pay accrued interest

She paid the accrued interest on her student loan.

accrued interest expense

The accrued interest expense reduced the company's profit.

total accrued interest

The total accrued interest after five years was substantial.

Synonyms and how they differ

accumulated interest

A general term for interest that has built up; 'accrued interest' is the technical financial term.

Word family

accrue verb

To increase over time, especially money or interest.

accrual noun

The act of accruing, or an amount that has accrued.

Commonly confused: accrued interest or interest?

Practice

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Write a sentence using “accrued interest”, then check it and compare it with the examples above.

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