Fee based financial services allow institutions to earn income through fees, dividends, and brokerage from specialized operations. Some examples include credit cards which charge interest for short term borrowing, debit cards which allow direct access to bank accounts for purchases and withdrawals, smart cards which store and transact data via an embedded computer chip, automated teller machines which allow customers to access accounts and perform banking without a teller, and safe deposit lockers which provide secure storage of valuables in a bank vault.

1. By Ankit chauhan
(ITM universe)
vadodara

2. Fee Based Services
Fee based financial services are those services
wherein financial institutions operate in
specialized fields to earn a substantial income
in the form of fees or dividends or brokerage
on operations.

3.  Credit cards:
A card issued by a financial company giving the holder an
option to borrow funds, usually at point of sale. Credit cards
charge interest and are primarily used for short-term financing.
Interest usually begins one month after a purchase is made and
borrowing limits are pre-set according to the individual's credit
rating.
Card holders normally must pay for credit
card Purchases within 30 days of purchase to
avoid interests and/or penalties.

4.  Debit cards:
An electronic card issued by a bank which allows
bank clients access to their account to withdraw cash or
pay for goods and services. This removes the need for
bank clients to go to the bank to remove cash from their
account as they can now just go to an ATM or pay
electronically at merchant locations. This type of
card, as a form of payment, also removes the need for
checks as the debit card immediately transfers money
from the client's account to the business account.

5.  Smart cards:
A smart card, typically a type of chip card, is a
plastic card that contains an embedded computer
chip–either a memory or microprocessor type–
that stores and transacts data. This data is usually
associated with either value, information, or both
and is stored and processed within the card's chip.
The card data is transacted via a reader that is part
of a computing system. Systems that are enhanced
with smart cards are in use today throughout
several key applications, including healthcare,
banking, entertainment, and transportation.

6.  Automated teller machine (ATM):
Computerized machine that permits bank customers
to gain access to their accounts with a magnetically
encoded plastic card and a code number. It enables the
customers to perform several banking
operations without the help of a teller, such as to
withdraw cash, make deposits, pay bills, obtain bank
statements, effect cash transfers. Also called
automated Banking machine, automatic till machine,
or remote service unit.

7.  Safe lockers:
Strong storage container maintained in the vault area of
a bank and rented to bank customers for safekeeping of
valuables. These boxes are said to be impervious to
fire, flood, and theft, and their contents are covered by
the bank's insurer. Access to individual boxes
is secured through two different keys: one kept by the
customer, the other by the bank.

8.  Cheque:
Cheque is an instrument in writing containing an
unconditional order, addressed to a banker, sign by the
person who has deposited money with the banker,
requiring him to pay on demand a certain sum of
money only to or to the order of certain person or to
the bearer of instrument.

9.  Demand Draft:
A method used by individuals to make
transfer payments from one bank account
to another. Demand drafts are marketed as
a relatively secure method for cashing
checks

10.  Bancassurance:
The sale of insurance and other
similar products through a bank. This can help
the consumer in some situations; for example, when a
bank requires life insurance for
those receiving a mortgage loan, the consumer
could purchase the insurance directly from the bank.
Some critics feel that bancassurance gives the bank too
much control. Bancassurance is not legal in all
countries, but it is legal in the United States.