If you’re thinking about ways to earn income that don’t require you to work 24/7, you’re on the right page. This isn’t about getting rich overnight. Sorry, you won’t find magic formulas here.
It’s about slowly building up wealth that you can eventually use to fulfill your dreams of starting your own business, taking that long-overdue trip, or maybe finally buying that dream car.
The good news? It’s absolutely doable. The key is finding the right passive income streams — passive income investments that quietly earn for you while you focus on other things.
In this article, we’ll discuss four of such streams. Some you may have heard of before, while some will be new to you. Either way, by the end, you’ll have a clearer idea of where to start.
Read on.
1. Fixed or Term Deposits
As you may know, a fixed or term deposit involves keeping your money in the bank for a fixed period of time, usually between one and ten years, and earning interest on it. This is possibly the best way to start.
So, why is this a good option? Safety. Your money is safe in a bank (FDIC-insured). They offer protection up to a certain limit, usually $250,000 in the U.S, so the chances of losing your principal are slim to non-existent.
Now, let’s talk about returns. Interest rates vary by bank and depend on how long you’re willing to lock in your funds. But according to Investopedia, most US banks are offering rates between 4.30% and 4.45% for October 2025. That’s a pretty decent return for doing nothing.
But there’s a catch, though. Your money is stuck for the duration you choose. If you need it early, expect to pay an early withdrawal penalty.
2. Ethereum (ETH) Staking
If a fixed deposit is the ‘classics’ of passive investment, then Ethereum staking is for modern investors. It’s for you if you’re comfortable with cryptocurrencies and want higher returns.
Instead of just buying Ethereum and leaving it in your wallet and hoping the price goes up, you can actively participate in securing the network by locking up your ETH for a period of time. Of course, you’re not doing this out of the goodness of your heart. In return, you earn more ETH. Think of it as a digital dividends program.
It sounds complex, yes, but platforms like Bit Digital have made the entire process quite simple.
So, how much can you earn in ETH staking rewards? Again, it varies, but according to Rated, the current all-time highest staking reward rate on ETH is around 2.95%.
If you’ve got Ethereum that you’re not using in a hurry, this could be the ideal avenue to help it grow. Note, however, that unlike fixed deposits, value can swing wildly. A sudden drop in the price of ETH can hurt you.
3. Real Estate
It’s practically impossible to talk about passive income without mentioning real estate. In fact, owning a rental property has long been one of the trusted ways to earn passive income, and with the increasing popularity of short-term rentals, it’s only getting more appealing.
According to Airbnb’s 2023 data, the average host earned over $14,000 a year, which shows just how profitable this route can be, especially in cities with high demand for short stays.
Now, to be fair, at first glance, it might not look very passive. You’ve got to actually put in the effort. It doesn’t just end with capital to buy and set up your rental property. There are also tenants or guests to deal with, repairs to sort out, and the occasional 2 AM phone call to handle one problem or another.
All true. However, once you’ve set systems in place or hire a reliable property manager, it becomes relatively passive and can be an important one of your passive income investments.
4. Money Market Funds
If you want the safety of a bank, but with the flexibility to pull out your cash whenever you want, then money market funds are for you. These funds invest in short-term, high-quality, but super-safe debt like government T-bills and corporate IOUs.
In many markets, money market funds yield about 4.14% annually, depending on duration and risk, according to data cited by USA Today. If you invest $100,000 in money market funds, you’ll be earning $5,000 at the end of the year without lifting a finger. That’s pretty remarkable returns.
Even better, unlike a fixed deposit, if you need your money in a hurry, you can pull it out within a day or two, without paying a penalty. But also, unlike a fixed deposit, your money is not FDIC-insured.
Money market funds are perfect for money you may or may not need quickly, but want to earn more than it would in a regular savings account.
Building Your Passive Income Portfolio
In 2025 and beyond, earning income from multiple streams should be a priority for you. The beautiful thing is that you’ve got a lot of passive income investments to choose from, including the four discussed in this article.
Look for the one that catches your fancy, do your research, and start earning extra money while doing little or nothing extra.