accumulating interest

USAGE SUMMARY

The phrase "accumulating interest" is correct and can be used in written English.
It is typically used to refer to the process of interest being added to a sum of money over time. Example: "He was relieved to see that his savings account had been accumulating interest at a higher rate than expected." This phrase can also be used in a metaphorical sense, such as in the following example: "The conflict between the two countries had been accumulating interest for decades, eventually leading to an all-out war."

✓ Grammatically correct

News & Media

Science

Academia

Human-verified examples from authoritative sources

Exact Expressions

22 human-written examples

The longer we wait, the bigger the cuts will need to be (because of the accumulating interest costs).

The New York Times

"I did not ask for my account to be placed in forbearance and as a result of this action, it is currently accumulating interest," he wrote.

The New York Times

Even after the title of the paintings was bought back for £8m and the works recovered for a total cost of £3.5m a large amount, accumulating interest, was left.

The Guardian

Here's a really good part: if you live long enough for the accumulating interest to push the total debt above your house's value, the difference is paid by insurance built into the loan.

The New York Times

The government fund, accumulating interest in a federal bank account, has grown to more than $800 million, although the Sioux say that using the money to buy Pe' Sla is not an option.

The New York Times

Certainly, the mere title under which these expenditures are once stated, is not sufficient to overthrow the facts—so fully and clearly shown—that the stockholders have never received any dividends; that in order to meet the accumulating interest on the bonds they have had to put their hands in their pockets, and advance a million and over of dollars.

Cornell University

Human-verified similar examples from authoritative sources

Similar Expressions

38 human-written examples

Most of this is accumulated interest on loans borrowed by rapacious dictators of the past.

The Guardian - Opinion

Once the HH bond matures, taxpayers will have to pay taxes on all the accumulated interest.

The New York Times

With penalties and accumulated interest, the loan balance is now $13,000, he said.

The New York Times

Meanwhile, debt accumulates interest at the rate of inflation plus up to 3%.

The Economist

Since the trust's principal would accumulate interest over time, the fund would pay out more than $100 billion in all.

The New York Times

Expert writing Tips

Best practice

Ensure clarity by specifying the rate at which interest is accumulating (e.g., "at an annual rate of X%") and the compounding frequency (e.g., "daily", "monthly", "annually") to give a complete picture of the interest accumulation process.

Common error

Avoid assuming that making minimum payments on a loan necessarily reduces the principal. If the interest accruing each month exceeds the payment amount, the balance will continue to grow, leading to a situation where debt actually increases despite regular payments.

Linguistic Context

The phrase "accumulating interest" functions as a verbal phrase describing the process of interest increasing over time. As Ludwig AI confirms, it’s a common phrase in financial contexts. The phrase can describe both benefits (savings) and drawbacks (debt).

Expression frequency: Common

Frequent in

News & Media

50%

Science

25%

Academia

12.5%

Less common in

Wiki

8.33%

Formal & Business

4.17%

Ludwig's WRAP-UP

In summary, "accumulating interest" is a verbal phrase that describes the process of interest growing over time, often used in financial contexts to explain how savings grow or debts increase. As Ludwig AI confirms, it is grammatically correct and commonly used. The phrase is appropriate for neutral and professional registers and is most frequently found in news and media sources. When writing, ensure you use "accumulating interest" to clearly communicate financial growth and avoid confusing it with principal repayment.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

accruing interest

Focuses on the gradual addition of interest, similar to the original phrase but with a slightly more formal tone.

gaining interest

Emphasizes the positive aspect of earning interest, suggesting a benefit or advantage.

building up interest

Highlights the cumulative effect of interest over time, suggesting a growing sum.

earning interest

Focuses on the act of receiving interest as a return on investment.

compounding interest

Specifically refers to interest being added to the principal, which then also earns interest, leading to exponential growth.

interest accruing

Inverts the original phrase, emphasizing the process of interest growth.

interest building up

Similar to "building up interest" but with a slightly different emphasis on the progressive increase.

interest is growing

States the growth of interest as a fact, focusing on the current state rather than the process.

debt is mounting due to interest

Highlights debt growth due to interest, adding the element of debt.

capitalizing interest

Refers to adding unpaid interest to the principal balance of a loan, which can then accrue more interest.

FAQs

How does /s/compound+interest differ from "accumulating interest"?

"Accumulating interest" is a general term for interest accruing on a sum. "Compound interest" specifically refers to interest that is added back to the principal, so that the interest also earns interest. It leads to faster growth than simple interest.

What are some alternatives to using "accumulating interest" in financial writing?

Depending on the specific context, you can use phrases like "accruing interest", "gaining interest", or "building up interest". The best choice depends on the nuance you wish to convey.

Is it always beneficial for interest to be "accumulating interest"?

While "accumulating interest" is generally beneficial for savings and investments, it can be detrimental for debts. When interest accumulates on loans or credit card balances, the total amount owed increases, potentially leading to financial strain.

What's the impact of inflation on "accumulating interest"?

The real return on "accumulating interest" is the nominal interest rate minus the inflation rate. If inflation exceeds the interest rate, the purchasing power of the accumulated interest decreases over time, meaning the investment isn't truly growing in value.