Back to Glossary
Interest Accrual Rate
Updated
January 19, 2023
An accrual rate is the interest rate charged on a financial commitment such as bonds, mortgages, or credit cards. The accrual rate is the rate at which interest is accumulated, which is frequently daily in the case of credit cards. The accrual rate for paid vacation time and pensions, on the other hand, is the pace at which vacation time or benefits are earned. - The percentage interest rate added to the principal of a financial commitment is known as the accrual rate. - Accrual rates differ depending on the type of financial obligation they are applied to. - Accrual rates are frequently used to compute the total of paid sick leave, vacation time, and pensions. - Accrual rates are critical in determining the actual worth of a financial commitment.
Related Topics
10 Best Home Builders in Nashville, TN: Find Your Dream Home Today
Wesley Mortgage 2023 Year-In-Review
What Is a Property Tax Lien
What Is an Adjustable Rate Mortgage (ARM)?
Navigating the Process of Mortgage Modification
What Is Non-Recourse Lending?
What Is a Short Sale?
When Is the First Mortgage Payment Due?