accruing interest

USAGE SUMMARY

The phrase "accruing interest" is correct and usable in written English.
It is typically used in financial contexts to describe the process of interest accumulating on a loan or investment over time. Example: "The savings account offers a competitive rate, allowing your funds to start accruing interest immediately."

✓ Grammatically correct

News & Media

Wiki

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

37 human-written examples

At the end of the June quarter, Australians had $51.5bn in credit card debt, of which $33.1bn was accruing interest.

The Guardian

Since the group is funded by the US government, participants can delay paying their student loans without accruing interest.

The Guardian

Over the term of the loan the cost would be higher though, as you are accruing interest for longer.

The Guardian - Money

They may consider everything from inheritance disputes and whether property deals comply with Islamic laws against accruing interest.

The Guardian

Transactions like these staved off immediate disaster, but, because of accruing interest, they piled up even more debt.

The New Yorker

There your small stash rests, year after year, accruing interest at the modest rate of 4% or so.

The Economist

Human-verified similar examples from authoritative sources

Similar Expressions

20 human-written examples

It would reduce debt and accrued interest from about $950 million to $250 million.

The New York Times

The money earns interest, and when people claim their funds, they receive the accrued interest.

The New York Times

That amount should be reported on Schedule B and the accrued interest subtracted.

The New York Times

The company currently accrues interest and fee income on loans until they are written off.

The New York Times

Iraq owes France about $3 billion and Germany about $2.5 billion, not including accrued interest and penalty fees.

The New York Times

Expert writing Tips

Best practice

When discussing financial matters, specify the rate and compounding period when mentioning "accruing interest" to provide clarity.

Common error

Avoid using "accruing interest" when describing account fees or penalties. Interest is specifically the cost of borrowing or the gain from lending money, distinct from charges.

Linguistic Context

The phrase "accruing interest" functions as a gerund phrase, often acting as a noun within a sentence. It describes the process of accumulating interest over time, as seen in Ludwig examples related to debt and loans. Ludwig AI confirms its correctness and usability.

Expression frequency: Very common

Frequent in

News & Media

50%

Wiki

22%

Formal & Business

20%

Less common in

Science

5%

Encyclopedias

1%

Reference

2%

Ludwig's WRAP-UP

In summary, the phrase "accruing interest" is a grammatically sound and commonly used term, especially in financial contexts, as confirmed by Ludwig AI. It functions as a gerund phrase, primarily used to describe the accumulation of interest on loans, debts, or investments. While its register is generally neutral, it often appears in professional and formal settings, such as news articles and business documents. To ensure clarity, specify the rate and compounding period. Remember that "accruing interest" refers specifically to the cost of borrowing or gain from lending, not general fees.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

accumulating interest

Focuses on the gradual increase of interest over time, similar to accruing.

earning interest

Emphasizes the positive aspect of gaining interest, rather than just the process of it happening.

drawing interest

Highlights the act of obtaining interest over time.

generating interest

Indicates that the principal is actively producing interest.

attracting interest

Suggests something is causing the interest to accumulate.

building up interest

Emphasizes the progressive accumulation of interest.

growing interest

Highlights the increase in the amount of interest.

piling up interest

Suggests a rapid accumulation of interest, often in a negative context.

developing interest

More abstract, implying the gradual formation of interest over time.

accumulating returns

Broadens the scope to any kind of investment return, not just interest.

FAQs

How can I avoid "accruing interest" on a credit card?

To avoid "accruing interest" on a credit card, pay your balance in full each month by the due date. This way, you take advantage of the grace period the card offers.

What's the difference between simple and compound interest when "accruing interest"?

Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus any "accumulated interest". Compound interest results in faster growth.

Is "accruing interest" always a good thing?

"Accruing interest" is beneficial when it applies to your savings or investments. However, it's detrimental when it applies to debt, as it increases the amount you owe.

What does it mean when a loan is not "accruing interest"?

If a loan is not "accruing interest", it means the interest charges are temporarily or permanently paused. This can occur during deferment periods, or under specific loan forgiveness programs.