Definition of Fee income:
Financial institutions make money in just two ways: by collecting interest on loans and by charging fees on services.
Fee income is the revenue taken in from account-related charges. 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.
Income generated from fees assessed to customer accounts. The banking industry has been highly criticized for profiting over excessive fees charged to customer accounts.
How to use Fee income in a sentence?
- Fee income is the revenue that a financial institution earns on services rather than interest payments.
- Fees also have grown for standard bank services such as checking accounts and ATM withdrawals.
- Fee income has mushroomed since 1980s bank deregulation permitted financial institutions to diversify into investment and insurance services.
Meaning of Fee income & Fee income Definition