Interest that has been earned or recognized but is not yet payable (credited) is considered accrued interest, for example, interest declared or accumulated on a bond since the last interest payment date up to but not including the settlement date (not yet paid).  Accrued interest also includes interest on bonds sold between interest payment dates. 

In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.