A yearly charge levied by a financial institution for the use of a credit card or other financial service. This fee is often associated with premium cards that offer enhanced rewards, benefits, or lower interest rates.
Annual Fee
Definition
A yearly charge levied by a financial institution for the use of a credit card or other financial service. This fee is often associated with premium cards that offer enhanced rewards, benefits, or lower interest rates.
Example
To enjoy the travel perks and airline miles, Emily chose a credit card that came with a $95 annual fee, which she deemed worthwhile for her frequent trips.
Key Points
- 1Recurring charge for a credit card or service.
- 2Common for premium cards with extensive benefits.
- 3May be waived for the first year or for high spenders.
- 4Should be weighed against the benefits received.
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