Explore commonly used personal finance terms.
An annual fee is a yearly charge for maintaining an account, particularly common in credit cards, investment accounts, or memberships. Credit card issuers, for example, may charge an annual fee for benefits such as rewards or cashback programs. This fee is separate from interest and is typically billed once per year. Some financial products waive the annual fee if specific conditions are met, making it a factor for consideration when choosing accounts or services.
