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Finance & Banking vocabulary · Interest & Exchange Rates

Accrue

Meaning in finance & banking, with examples

/əˈkruː/verbCommon term

In finance & banking, accrue means: To build up gradually over time, as interest does on a loan or deposit; in accounting, to record income or costs when they are earned or incurred, not when cash moves.

In Turkish: tahakkuk etmek, işlemek, birikmek

How it is used

Used in loan statements, deposits and accounting. Interest accrues daily on most accounts, and unpaid interest is called accrued interest. Accountants accrue expenses at month end; the noun is 'accrual'. When a bond is sold, the buyer pays the seller the interest accrued since the last coupon.

Example sentences

  1. Interest accrues daily but is paid into your account at the end of the month.

  2. We need to accrue the consultancy fees in March, even though the invoice will arrive in April.

Common collocations

  • interest accrues
  • accrued interest
  • accrue expenses
  • accrual basis
  • interest rateThe price of borrowing money, shown as a percentage of the amount borrowed or saved for a period, usually one year.
  • compound interestInterest calculated on both the original amount and the interest already added, so the total grows faster over time than with simple interest.
  • simple interestInterest calculated only on the original amount borrowed or deposited, not on interest already earned, so it grows by the same amount each period.
  • income statementA financial statement showing a company's revenue, costs and profit or loss over a period, such as a quarter or a year.
  • expenseMoney that a business spends, or a cost it records, in order to run its activities and earn revenue, such as salaries, rent or interest.

More terms: Interest & Exchange Rates

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This page explains English vocabulary for learners. It is not financial advice.