Charges that generate fee income include non-sufficient funds fees, overdraft charges, late fees, over-the-limit fees, wire transfer fees, monthly service charges, and account research fees, among others. Credit unions, banks, and credit card companies are types of financial institutions that earn fee income.

In this article we will list down the various sources from which banks can generate non interest i.e. fee based income.

1. Cards.
2. Commissions.
3. Capital Market Advisory.
4. Demand Drafts and Pay Orders.
5. Guarantees.
6. Account Related Fees.
7. Lockers.
8. Authorship/Referencing – About the Author(s)

Generating non-interest income for your financial institution ultimately benefits borrowers by defraying costs, decreasing loan rates, and increasing savings rates. One way to do so is by introducing new products that complement your current offerings and bring value to your new and existing consumer base.

Non- interest related income includes net gains on trading and derivatives, net gains on other securities, net fees and commissions and other operating income. Banks also seek to increase noninterest income because it is considered to have traits that make it different from interest income and thus desirable.

Strategic Importance of Non-Interest Income This is especially true when interest rates are low since banks profit from the spread between the cost of funds and the average lending rate. The more drivers of income a financial institution has, the better it is able to weather adverse economic conditions.

Following these tips can increase your earnings and generate higher returns.

1. Compounding Interest.
2. Laddering Bond Maturities.
3. Mutual Fund Breakpoints.
4. Online Savings Accounts.
5. Other Banking Relationships.

Opt for Sweep In facility: For example, if the minimum balance needed to be maintained is Rs. 25,000, an auto sweep may convert any amount above Rs. 50,000 into a Fixed Deposit. This money will earn interest at a higher rate and the interest will get credited to the Savings Account.

Fixed Deposit Interest Rates by Different Banks

3 Simple Ways to Boost Your Savings in 2019

1. Put your money in a high-yield savings account. The interest rate offered on savings accounts at most brick-and-mortar banks is less than one-tenth of a percent.
2. Use ‘set it and forget it’ transfers.
3. Earn rewards from checking accounts.

How much interest can you earn on $1,000? If you’re able to put away a bigger chunk of money, you’ll earn more interest. Save $1,000 for a year at 0.01% APY, and you’ll end up with $1,000.10. If you put the same $1,000 in a high-yield savings account, you could earn about $5 after a year.

Is your money stuck in an online savings account? No. Just like a traditional savings account, your money is accessible to you when you need it. With just a few clicks, you can move money in and out of your savings and into another account.

Online savings accounts generally are safe and secure, but there are a few steps you should take before you choose a company to bank with. Online savings accounts are usually insured by the FDIC, just like traditional banks. If a bank carries FDIC insurance, your account is automatically insured.

Many people who have their emergency funds in an online savings account have to transfer the money to their normal, brick-and-mortar bank, then take the cash out there. “Generally, it takes 24 to 48 hours,” said Greg McBride, SVP and chief financial analyst at Bankrate.com.

They work like any other savings account But in most other respects, online savings accounts work like local bank savings accounts. You can deposit checks into your account – usually through a mobile banking app – and by direct deposit.

To fund your online bank account, you can deposit cash into a separate bank account that has ATMs or branches and then transfer that money to your online bank electronically. You can also buy a money order and make it payable to yourself before making a mobile check deposit into your online bank account.

Saving money on a routine basis can be a difficult habit to form, but it doesn’t have to be. One of the benefits of an online savings account is that you can take your willpower out of the equation by setting up weekly or monthly automatic deposits from your checking account into your online savings account.