A note in which coupon amount is determined largely or entirely by an embedded range accumulation option, and where the payoff is based on an underlying benchmark such as equity indexes, interest rates, and foreign exchange rates. Accrual notes are primarily instrumental for investors willing to increase interest rate yields based on assured forecasts. An example of accrual notes is LIBOR range notes.

Accrual notes are also known as index range notes, accretion-bond index range notes, range floaters, range accrual notes, range accumulation notes, fairy bonds, corridor bonds or notes, etc.