Non-Interest Income
Definition of 'Non-Interest Income'Bank and creditor income derived primarily from fees. Examples of non-interest income include deposit and transaction fees, insufficient funds (NSF) fees, annual fees, monthly account service charges, inactivity fees, check and deposit slip fees, etc. Institutions charge fees that provide non-interest income as a way of generating revenue and ensuring liquidity in the event of increased default rates. |
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Investopedia explains 'Non-Interest Income'Non-interest income makes up a significant portion of most banks' and credit card companies' revenue. In 2008 alone, credit card issuers took in over $19 billion in penalty-fee income alone – this includes late fees and over-the-limit fees, among others. The passage of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009 included sweeping restrictions on credit card companies' ability to generate non-interest income. |
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