Federal Credit Reform Funds: Treasury accrues interest daily based on the prior fiscal year's rate, unless an updated rate estimate is provided by the borrowing agency. The estimated rate is adjusted to the actual rate when it becomes available.
When principal is repaid to Treasury between October 1 and August 31, Treasury will reverse accrued interest previously reported and accrue 1/2 year of interest on the principal repayment. Treasury will compound the 1/2 year of interest once the actual interest rate is received at the end of the fiscal year.
When principal is repaid to Treasury between September 1 and September 30, Treasury will accrue a full year of interest.