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Home > QFINANCE Dictionary > Definition of accrual of interest

Definition of

accrual of interest


addition of interest to principal the automatic addition of interest to the original amount loaned or invested. Accrual of interest costs match the cost of capital with the provision of capital.

Recommended Further Reading (Term count)
  • Sukuk: Islamic Bonds
    This checklist describes sukuk, the shariah-compliant equivalent of interest-bearing fixed-income instruments.

Definitions of ’accrual of interest’ and meaning of ’accrual of interest’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’accrual of interest’ and other financial terms with our online QFINANCE Financial Dictionary.

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