Are certificates of deposit a good source of passive income?

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Good question.

No, certificates of deposit are not a good source of passive income. One reason to buy certificates of deposit would be if you are using them as collateral to obtain a bank line of credit.

Let’s say that you are trying to get a 10 million line of credit to buy real estate. You might in this case with some partners have multiple partners put money in various CDs at the bank and have them pledge the CDs to secure the line of credit.

But certificates of deposit are of no real value for passive income and should not be used to create passive income. If you would like to learn more about how to create passive income, please contact my office at benjaminzmiller.com and request the free passive income guide.

I hope that helps and good luck with your investing!

Benjamin Z Miller
www.benjaminzmiller.com