Accrue

To accumulate or receive (money, benefits, or resources) over time, often through the passage of time or the addition of interest. The term is frequently used in a financial context, indicating the growth of an amount due to factors such as interest rates or investments. Accrual can also refer to the gradual increase of other forms of benefits or entitlements, such as vacation days or rewards in a loyalty program.

Accrue meaning with examples

• As the interest rates on her savings account increased, Jane watched her funds accrue steadily, leading her to feel more secure about her future finances. This experience motivated her to maintain her savings plan and even contribute more each month, fully understanding the importance of compound interest.
• The company's decision to implement a new benefits structure allowed employees to accrue vacation days faster, giving them more flexibility in planning their time off. Many employees began to realize that this change enhanced their work-life balance and overall job satisfaction.
• During tax season, it’s essential for individuals to review any interest accrued from various accounts, as this income can impact their tax liabilities. The careful tracking of accrued interest ensures proper reporting and potentially maximizes any deductions available.
• Investors often prefer stocks that have the potential to accrue dividends regularly, as this can lead to a steady income stream over time. Understanding how dividends accrue can help investors make informed decisions about their portfolios and long-term financial strategies.
• Students who take out loans may find that interest begins to accrue while they're still in school, leading to larger repayment amounts later. This realization often encourages students to take advantage of interest-free deferment periods and consider repayment options early on.