The yearly charge that some credit cards impose simply for holding the account is called an annual fee.
An annual fee is a recurring charge assessed by the card issuer, usually once per year. It is separate from interest, late-payment charges, cash-advance fees, and foreign-transaction fees. Some cards have no annual fee, while others charge one because they offer rewards, travel benefits, insurance, airport-lounge access, or other features.
The fee may be charged when an account opens and then on each anniversary, or it may appear on a periodic statement according to the issuer’s terms. Promotional offers sometimes waive the fee for the first year, so the long-term cost can differ from the headline offer.
Consumers comparing cards should consider the annual fee alongside the rewards rate and benefits. A card with a fee can still be cheaper overall if its benefits exceed that cost, but a no-fee card may be preferable for people who use credit only occasionally.