Non-Interest Income

Non-interest income is the income that a financial institution generates from sources other than interest on loans and investments. This includes fees from services such as checking accounts, savings accounts, credit cards, and other products and services. Non-interest income can also include gains from the sale of assets, such as investments or real estate.

Non-interest income is an important part of a financial institution's overall revenue. It can help to offset the costs of providing loans and investments, and it can also be used to increase the institution's profits.

There are a number of different types of non-interest income that a financial institution can generate. Some of the most common types include:

Fees from checking and savings accounts: Financial institutions typically charge fees for checking and savings accounts, such as monthly maintenance fees, overdraft fees, and ATM fees. These fees can be a significant source of non-interest income for financial institutions.
Fees from credit cards: Financial institutions also charge fees for credit cards, such as annual fees, late payment fees, and interest charges. These fees can be a significant source of non-interest income for financial institutions.
Gains from the sale of assets: Financial institutions may also generate non-interest income from the sale of assets, such as investments or real estate. These gains can be a significant source of non-interest income for financial institutions, especially during periods of economic growth.