Earn Money Could cumulative interest on bank deposits be called passive income?

[iamawriter]

Fixed deposits in banks generate income by way of interest and that is paid either monthly, quarterly or annually but the option for cumulative deposit the interest gets compounded and gets added to the capital invested.

Would you not consider this as passive income?

 

[kayode10]

if you look at it very well that interest is not bringing a good return on investment compared to the amount of money the banks are making from the money you deposit with them. Instead of keeping money in the savings account in the bank, I would rather use it to buy cryptocurrency that has a steady rise and play a long-term game with it.

 

[iamawriter]

if you look at it very well that interest is not bringing a good return on investment compared to the amount of money the banks are making from the money you deposit with them. Instead of keeping money in the savings account in the bank, I would rather use it to buy cryptocurrency that has a steady rise and play a long-term game with it.

You have a point there but for some who are new to crypto currency perhaps a safe haven would be bank fixed deposits.

 

[Alexandoy]

In the olden days the compounding of interest on bank deposits was common. But now that is not practiced anymore. However, a big deposit in the bank that would earn a good rate of interest is definitely a passive income. If I have a deposit of $100,000 that would earn me an interest of $5,000 in one year for a 5% annual interest. That is pretty good for a passive income.

 

[Setho]

A passive income is generally money that you make without having to invest so much either in time or in capital into it. You can very well consider bank interest placed on your savings as passive income because you did not do anything in order to make the money to grow.