Accrued Interest Accrued Interest
Interest that has been earned but not paid. This might include the interest calculated as due this month for a bond with a semi-annual payment normally paid next month. Because our accounts are maintained on a 'cash basis,' customers are not able to use the accrued interest until it is actually received. Accruals are therefore information totals only, intended to help the customer understand the earnings potentials of his or her account.