Banking
Annual Fee
Also known as: Membership Fee, Card Fee
Yearly charge levied by credit card companies for card membership and associated benefits.
Detailed Explanation
Annual fee is charged yearly for card maintenance and access to benefits like reward points, cashback, insurance coverage, and airport lounge access. Fees range from ₹500 for basic cards to ₹10,000+ for premium cards. Many banks waive annual fees based on spending thresholds or for the first year.
Related Terms
Credit Card
A payment card that allows borrowing money from bank up to a predetermined limit for purchases.
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Reward Points
Points earned on credit card spending that can be redeemed for cash, gifts, or statement credits.
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Cashback
A percentage of the purchase amount credited back to the credit card account or as statement credit.
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