Fixed Deposit Bank Accounts as a Passive Income Source

[nomad]

If you have money, one of the easiest ways to build a passive income is by keeping your money in a fixed-deposit bank account. When you keep your money in a fixed deposit bank account, your funds will be locked for a certain time (three months, one year, 2, years, etc.) and you will be earning high interest on your deposit. In our country, you can get upto 12 percent interest rate on fixed deposit bank accounts.

 

[Hate2Wait]

12% is fantastic. Are there any conditions for it like a senior or super senior citizen or do you need to for a very long term FD

 

[Springtime]

12% interest rate is awesome. Here, the interest rate for fixed deposit money is very low, at 2-3%. I have put some money in fixed deposit account because it is the safest way to save money and at the same time give you some passive income. To grow my wealth, I invest in stocks, mutual funds and bonds.

 

[Hate2Wait]

I think over here we can get around 8% max and even that would be possible for Super senior citizens who are 80+

 

[Yohanna]

Generating passive income through fixed deposit in commercial banks is one of the ways to make passive income.

 

[Hate2Wait]

Its one of the common ways through which we can earn passive income and there is no risk so it should be utilized too

 

[eldavis]

Yes this is also a good way to generate passive income,but the problem with this method is that it is usually very small so there is really no need relying on this method.

 

[IB D]

That kind of passive income that would give you 3% in 6 months is not worth it. It is better you use the money to invest in shares of some reputable organization.

 

[Stardom22]

I think in my country they only pay peanuts on the fixed deposit Bank accounts. I think maybe you use this cash to buy some shares on the best performing companies in my country.

 

[IB D]

Fixed deposit is not bad. It is just that the value of the money keeps falling with inflation and the interest the bank gives is not enough to measure up with the inflation.

 

[Stardom22]

In my country people never earn interests in deposited money in their bank account. I think people are encouraged to make investments in other ways other than just making deposits in banks.

 

[Yohanna]

Passive income source is a great way to make decent money.

 

[nomad]

Its one of the common ways through which we can earn passive income and there is no risk so it should be utilized too

True indeed. There is no risk in earning passive income through fixed deposit bank account. You might lose money when bank goes bankrupt but this does not happe too often, so there is nothing to worry about.

 

[Hate2Wait]

In India our deposits are safe till 5 Lac INR so we can deposit in this way that we don't lose anything

 

[Suba]

Very high deposit interest rewards given by banks in your country up to 12%, I also have deposits for a period of 6 months with only 2.75% interest. so if i deposit $10k will only get back so i will only receive a total refund of $10,137,500. Meanwhile, the interest I earned was only $137,500

 

[Bisolami]

Yes this is also a good way to generate passive income,but the problem with this method is that it is usually very small so there is really no need relying on this method.

Making money from fixed deposit is good because you will be sure that your money is safe but the interest you will be making will be very little. It is little or nothing.

 

[Hate2Wait]

We also need to see the tax we need to pay because there is a limit on the amount of interest we can earn from FDs in a year or else we need to pay TDS

 

[Bisolami]

We also need to see the tax we need to pay because there is a limit on the amount of interest we can earn from FDs in a year or else we need to pay TDS

I think you have a good idea because a lot of people do not even calculate the tax they need to pay and at the end of the day, they will say that the Investment is not lucrative or make a lot of complaints

 

[nomad]

Very high deposit interest rewards given by banks in your country up to 12%, I also have deposits for a period of 6 months with only 2.75% interest. so if i deposit $10k will only get back so i will only receive a total refund of $10,137,500. Meanwhile, the interest I earned was only $137,500

Until recently, banks offered upto 13 percent interest rates for fixed deposit bank accounts and you could double money in less than 6 years. But now they have lowered interest rates, but you still get 10 percent return.

 

[Suba]

Until recently, banks offered upto 13 percent interest rates for fixed deposit bank accounts and you could double money in less than 6 years. But now they have lowered interest rates, but you still get 10 percent return.

Maybe the banks in my country are more oriented towards making big profits, rather than helping people to like to save and deposit, that's why I only make deposits for the short term so that they can immediately be allocated to investment instruments.