Banking Practice Exam 2025 – Comprehensive All-in-One Guide to Master Your Banking Exam!

Checking accounts typically yield non-interest income for a bank primarily through the various fees associated with them. These fees can include monthly maintenance fees, overdraft fees, and charges for additional services such as wire transfers or foreign currency exchanges. While savings accounts, time deposits, and certificates of deposit primarily generate interest income, checking accounts generate revenue for banks through customer transactions and related service fees, making them a significant contributor to non-interest income.

In contrast, savings accounts and time deposits offer interest on deposits but are less focused on fee generation. Certificates of deposit also fall under this category, as they generally provide fixed-term interest rather than offering multiple avenues for fees. Therefore, the unique structure of checking accounts allows banks to earn money through various fees instead of just through interest, distinguishing them in this context.