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April 22, 2025
by Chelsea Grohgans
In today’s fast paced world, passive income has become a growing trend. It allows for more financial freedom, while not having to be chained to the normal 9 to 5 workday. But what exactly is passive income, and how can your bank help you generate it?
These are the questions I intend to explore in this blog article, highlighting practical ways you can start building passive income, and discussing the various financial products and services that can help you achieve your goal of financial freedom!
Passive income is money earned with minimal ongoing effort after an initial investment of time, money, or resources. Unlike active income, such as a salary earned by spending hours working for an employer or money earned through self-employment, passive income flows in even when you’re not actively working—like when you’re sleeping or on vacation! While this requires an upfront investment of time and/or capital, the goal is to create streams of revenue that eventually require little to no attention after the initial set up.
There’s no one-size-fits-all path to reaching a point where you can live partially or entirely off passive income. You’ll want to try different strategies to find those that fit your lifestyle and needs. If you’re looking for a place to start, here are some strategies you could consider:
CD’s, Money Market and Savings Accounts – Don’t overlook the power of compound interest! Whether you’re saving a small amount or a small fortune, any amount of money has the ability to earn interest at a guaranteed rate. Unlike more volatile assets, after your initial account opening, these products typically require little to no effort to watch your savings grow. New Tripoli Bank offers a variety of savings products that can help you get started earning interest with your existing savings.
Rental Properties – Real estate can be a powerhouse for passive income, provided you have the capital to invest. Buy a property, rent it out and collect the monthly checks. Unlike the previous example, rental properties are not fully hands off. Your properties will need repairs, and you will need to manage your relationship with your tenants. If you have the flexibility to do so, you can always hire a property management company to help lighten the load.
Stock Market Investments – Investing in stocks or Exchange Traded Funds (ETF’s) that pay dividends is a straightforward way for you to earn passive income. You buy shares in a company, and those companies regularly pay back a portion of any profits they may make. To make the most of your dividends, you could store them in a savings or money market account and earn interest while you plan your next investment move!
Online Content Creation – Do you have a knack for writing, designing, or teaching? Consider creating a blog about your favorite topic or a page on your favorite social media platforms! With a little luck, your content could have the ability to earn money through advertisements, sponsorships, or even your own online sales.
Your bank can be your ally when it comes to earning passive income. Banks exist to protect and grow your money, so you can stay focused on earning new revenue streams.
Savings & Money Market Accounts – Start earning interest at any point in your passive income journey. At New Tripoli Bank, you will earn interest on your savings account with as little as $20 to start. What about those of you who already have plenty of income saved? A Money Market account can help you earn more with tiered rates starting at $1,000.
CD Ladders – Instead of opening one big Certificate of Deposit, spread your money across multiple CDs with different maturity dates for steady, predictable income. When each maturity date arrives, you can make the choice to withdraw your money or re-invest in another CD, depending on your financial situation at the time.
Interest Checking Accounts – New Tripoli Bank offers an interest-bearing checking account for customers who keep $500 or more in their daily balance, helping to turn everyday funds into a mini stream of income. These accounts are perfect for consumers looking for the easy access that checking accounts provide while still looking to maximize their earnings potential.
Starting your passive income journey doesn’t require a fortune or endless free time. Begin with what you have—whether it’s $10 or $10,000—and invest in a savings account, rent a spare bedroom out, or invest in some stocks. Thoroughly research your options, set clear realistic goals, and take advantage of interest-bearing products offered by your local community bank. The key is consistency: small actions today compound into big rewards tomorrow!
Please note this is not intended to be tax or investment advice. You should consult with your tax professional and/or investment advisor before making any large financial decisions.
Chelsea Grohgans has been a member of the New Tripoli Bank team since 2020. She currently serves as Deposit Project Specialist for the Bank, working closely with our Branch Administration, Deposit Operations, and Marketing teams to launch new products. When not working for the Bank, she spends her free time with her husband and raising their young daughter.
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