accrue interest

USAGE SUMMARY

The phrase "accrue interest" is correct and usable in written English.
You can use it to refer to the accumulation of money due as interest on an investment or debt. For example: "The savings account will accrue interest over time, so I'll eventually have more money than I originally deposited."

✓ Grammatically correct

News & Media

Academia

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

Student loans accrue interest from the date they are paid, until they are repaid in full.

The Guardian - Money

The interest becomes part of the principal balance and begin to accrue interest.

Yale University

Subsidized loans in deferment do not accrue interest, but unsubsidized loans in deferment do.

University of California, Berkeley

Subsidized loans in deferment do not accrue interest, but unsubsidized loans do.

University of California, Berkeley

The deferred money will not accrue interest until he reaches the payout period, which will run from 2009 through 2024.

The New York Times - Sports

This is effectively a pay-out as the loan does not accrue interest and there is no scheduled repayment date.

The Guardian

"You have an 18-year-old taking out a $13,000 loan that will accrue interest for four years.

The New York Times

The money was borrowed from commercial banks, he said, so the cost keeps growing as the loans accrue interest.

The New York Times

The remaining 40% of large deposits at the Bank of Cyprus will be "temporarily frozen for liquidity reasons", but will continue to accrue interest, it was announced.

The Guardian - Money

Low-income individuals would accrue interest (assuming a healthy stock market) only on their contributions, which would be based on their much lower wages.

The New York Times

Link pointed us to a section on its website which says the vast majority of accounts serviced by it do not accrue interest during the collections process.

The Guardian - Money

Expert writing Tips

Best practice

When discussing investments or loans, use "accrue interest" to clearly indicate that interest is accumulating over time, even if it's not immediately paid out.

Common error

Avoid using "accrue interest" interchangeably with "incur interest". "Accrue" refers to the gradual accumulation of interest, while "incur" means to become subject to (a debt or obligation), often unexpectedly.

Linguistic Context

The phrase "accrue interest" functions as a verb phrase, describing the process of accumulating interest over time. Ludwig's examples show its usage across various financial contexts.

Expression frequency: Very common

Frequent in

News & Media

48%

Academia

24%

Formal & Business

14%

Less common in

Wiki

7%

Science

4%

Reference

3%

Ludwig's WRAP-UP

The phrase "accrue interest" is a common and grammatically sound way to describe the accumulation of interest over time, as confirmed by Ludwig. It is frequently used in news, academic, and business contexts to explain how interest grows on investments or debts. While alternatives like ""accumulate interest"" or ""gain interest"" exist, "accrue interest" specifically highlights the gradual build-up of interest, making it a valuable term in financial discussions. Remember to avoid confusing it with "incur interest", which has a slightly different meaning. With over 60 examples provided, it is easy to see how the phrase can be used effectively.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Accumulate interest

Replaces "accrue" with "accumulate", emphasizing a gradual increase.

Gain interest

Focuses on the benefit of receiving interest.

Earn interest

Highlights the idea of deserving or obtaining interest through investment.

Generate interest

Suggests the interest is being actively created.

Draw interest

Implies interest is being attracted or pulled in.

Collect interest

Emphasizes the act of gathering interest payments.

Build up interest

Suggests a gradual and steady increase in interest.

Realize interest

Focuses on the actual receipt or recognition of interest.

Yield interest

Highlights the interest as a return on investment.

Grow interest

Emphasizes the natural increase of interest over time.

FAQs

How do I use "accrue interest" in a sentence?

You can use "accrue interest" to describe the gradual accumulation of interest on a principal amount. For example, "The savings account will "accumulate interest" over time".

What's the difference between "accrue interest" and "earn interest"?

"Accrue interest" refers to the accumulation of interest over a period, whether or not it's paid out. "Earn interest" implies that the interest has been realized or received. They can often be used interchangeably, but "accrue" emphasizes the process of accumulating. For example, you might "gain interest" on a bond over time.

Is it better to have an account that accrues interest daily or monthly?

Generally, an account that accrues interest daily is more beneficial, as the interest is calculated and added to the principal more frequently, leading to faster growth. However, the difference may be negligible depending on the interest rate and the amount of money in the account. Consider if your account will "yield interest" sooner rather than later.

What are some factors that affect how much interest accrues?

The amount of interest that accrues depends on the principal amount, the interest rate, the compounding frequency, and the length of time the money is invested or borrowed. Be sure to monitor how you "generate interest"!