Interest Income

Interest Income

Interest Income may have one of the following meanings, depending the context of the term:

1. income derived from an investment on which the payments reflect the time value of money.

2. income derived from transactions in which the payments are for the use or forbearance of money.

Description and Definition of Interest Income

Earnings on investments such as savings accounts, certificates of deposit, bonds, and seller-financed mortgages. Interest is reported to the recipient on Form 1099-INT.

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