What is the meaning of buckets?

In gap reports, the predefined time interval groups are often called' buckets'. The buckets can be defined to represent whatever time units a bank wants to see in its gap reports. The time intervals can be single months or years. Smaller buckets, such as one-month buckets, give more detail, which in turn can provide a more accurate measure of interest rate risk. On the other hand, smaller buckets can require a greater number of buckets to show the interest rate risk far enough into the future for prudent analysis. Often, one-month buckets are used for the first six or twelve months with larger time intervals used as buckets for later periods.