Interest Income refers to the earnings generated from investing money in interest-bearing assets. This type of income is typically received by individuals or institutions that have placed their funds into savings accounts, certificates of deposit (CDs), bonds, or other financial instruments that pay periodic interest. The amount of interest earned depends on the principal amount invested, the interest rate offered by the issuer and the duration for which the money is lent out. Interest income can be received regularly as a stream of payments over time or in a lump sum at maturity. It forms an important part of an individual's or institution’s overall investment portfolio, providing a steady source of passive income that can help to offset expenses and support long-term financial goals.