Annual Fee

An annual fee is a cost charged each year by a lender for providing credit.

Annual fees are mostly seen in commercial finance and trading loans, but also crop up in the consumer world, where annual fees might well be charged for bank overdrafts, and sometimes, for charge cards such as American Express and Diners Card, and for a small number of credit cards.

Annual Percentage Rates will always include annual fees within the calculation of the overall cost of credit.

Annual fees are often not given much prominence when selling credit. The best place to check to see if an annual fee applies is in the Summary Box, which is often buried in the terms and conditions, but should stand out a bit from the text and be relatively easy to find.

Jargon Buster

Use the links below and the resulting list of terms on the right to locate the term you are looking for. If you can't locate it, please get in touch.

A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
keyboard_arrow_left

keyboard_arrow_right

We have loads of great customer reviews