annual fee

Definition

A fee charged once per year by financial institutions on certain type of accounts, usually in order to offset operating expenses. Charges for maintaining investment accounts may include annual fees to allow the institution to cover expenses even if very few commission-generating activities, such as stock trades or fund transfers, take place on that account.

Use annual fee in a sentence

I wanted to join the pool league down the road but the annual fee was astronomical so I decided against it.

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The annual fee of the credit card was nothing, so the individual committed to paying the card off each month, and enjoyed the card.

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The annual fee on our credit card was high enough to cause some serious concern among my partner and I over whether we needed to close that credit card or not.

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wrap account utilization fee