Annual fee

An annual fee is a yearly charge some credit cards levy simply for holding the card, regardless of how much you spend. It is usually billed on your account anniversary and can range from nothing at all (a lifetime-free card) to tens of thousands of rupees for super-premium cards with extensive travel and lifestyle benefits. Many cards waive the annual fee from the second year onwards if you cross a minimum annual spend, so it is worth checking the exact waiver condition rather than just the headline fee.