BANKING AFFAIRS

Detailed explanation-1: -The primary source of income for banks is the difference between the interest charged from the borrowers and the interest paid to the depositors. Banks usually collect higher interest from loans than the interest they provide for deposits.

Detailed explanation-2: -Noninterest related income includes net gains on trading and derivatives, net gains on other securities, net fees and commissions and other operating income. Bank’s income that has been generated by noninterest related activities as a percentage of total income (net-interest income plus noninterest income).

Detailed explanation-3: -Interest income is money earned by an individual or company for lending their funds, either by putting them into a deposit account in a bank or by purchasing certificates of deposits.

Detailed explanation-4: -On the Current account, the bank does not pay any interest. Current Account is mainly used for business purpose. There is no restrictions on number and amount of withdrawal in a current account.