Annual Fee

Annual Fee

An annual fee is the yearly charge your bank levies for maintaining your credit card account. In India, annual fees range from zero on entry-level cards to ₹12,500+ on premium cards like the HDFC Infinia or Axis Reserve.

How It Works

Your bank charges the annual fee once every 12 months, typically on your card’s anniversary date. It appears as a line item on your statement — just like any other purchase. If you don’t pay it, interest accrues on it the same way.

Can You Get It Waived?

Most Indian banks will waive the annual fee if you hit a minimum spend threshold. For example:

• HDFC Regalia Gold: ₹3,00,000 annual spend waives the ₹2,500 fee
• SBI SimplyCLICK: ₹1,00,000 annual spend waives the ₹499 fee
• Axis Flipkart: ₹2,00,000 annual spend waives the ₹500 fee

Some banks waive the fee if you simply call and ask — especially if you’ve been a long-standing customer or hold other accounts with them.

Should You Pay an Annual Fee?

Do the math. If your HDFC Infinia costs ₹12,500 per year but you earn ₹40,000 worth of reward points, lounge visits, and insurance — the fee pays for itself three times over. A “free” card with weak rewards could actually cost you more in missed value.

Rule of thumb: A card is worth its annual fee if the total value of benefits you actually use exceeds 2x the fee amount.