What is an annual fee?

@cedrick.casper 

An annual fee is a charge that is imposed on certain financial products, such as credit cards or bank accounts, for the privilege of using those products for a year. It is a fixed amount that is typically billed once a year. The fee may cover the cost of maintaining the account or providing certain benefits and services, such as rewards programs, travel insurance, or access to exclusive features. Annual fees vary in amount and can range from a few dollars to several hundred dollars, depending on the financial institution and the specific product. Some providers may waive the annual fee for the first year as a promotional offer.

@cedrick.casper 

An annual fee is typically charged by financial institutions as a way to generate revenue and offset the costs associated with offering and maintaining certain products. It is important for consumers to carefully consider the benefits and costs associated with an annual fee before deciding whether or not to open an account or apply for a credit card that charges one.