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.
Recommended Articles from InvestorGuide.com
Investing Tips
Low Interest Rates Compared to Annual FeesWhen choosing a credit card, ask yourself if you plan to pay the balance in full each month. Many people don't pay their bill each month -- they always carry a balance and pay interest on it. Yet many ... Read more
Related Videos
Featured Advertiser
