What is the interest received by a business on money held in deposit accounts called?

The interest received by a business on money held in deposit accounts is referred to as finance income. This term encompasses any earnings that a business generates from its financial activities, particularly from interest on cash reserves placed in savings or deposit accounts. Finance income is significant, as it contributes positively to a company's overall income statement, allowing businesses to benefit financially from the funds they have set aside rather than having them merely idle.

Other options may seem related but do not accurately capture this concept. Finance expense refers to costs incurred, such as interest paid on borrowed funds. Investment returns might imply revenue from investments in securities or other assets but does not specifically refer to the interest gained from deposit accounts. Deposit interest is a more colloquial term that might describe the same idea but is not the standard accounting terminology used to represent income earned in this context. Thus, finance income is the correct term for the interest received on deposits.