Earning Assets

Written By
Paul Tracy
Updated November 4, 2020

What are Earning Assets?

Earning assets are assets that generate income like interest or dividends.

How Do Earning Assets Work?

Typically, earning assets require very little ongoing work from the owner of the assets. Interest-bearing accounts, CDs, dividend stocks, preferred stocks, bonds, and similar instruments are earning assets.

Why Do Earning Assets Matter?

For individuals, earning assets can be useful in funding retirement; for companies, earning assets often are places to deposit excess cash. Because many types of earning assets are offered by banks, the supply of earning assets is often dictated by the amount of excess reserves banks have. This is one reason that reserve requirements affect interest rates.

Ask an Expert
All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Earning Assets.
Be the first to ask a question

If you have a question about Earning Assets, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers.

If you have a question about Earning Assets, then please ask Paul.

Ask a question Read more from Paul

Read this next

Paul Tracy - profile
Ask an Expert about Earning Assets

By submitting this form you agree with our Privacy Policy

Don't Know a Financial Term?
Search our library of 4,000+ terms