Interest Income

Interest income is the money earned from lending money or from holding financial assets like savings accounts, bonds, or loans. When you deposit money in a bank, the bank may pay you interest as a reward for allowing them to use your funds. Similarly, if you lend money to someone or invest in bonds, you receive interest payments regularly. This income is a source of profit for lenders and investors, reflecting the return on their financial assets. Interest income is an important part of many businesses' earnings, especially financial institutions.