New Delhi, July 22 -- An annual fee is a yearly cost that credit card companies charge simply for the privilege of issuing a card. This fee is automatically charged in your anniversary month each year and is typically Rs.499 to Rs.5,000 (or more for premium cards).

While an annual fee may be seen as a nuisance to be avoided, if you use your card wisely, the fee can help you access various benefits that could lead to net savings.

In exchange for the annual fee, you will earn significant services and privileges in addition to the plastic:

For frequent travellers and high spenders, premium cards are a good investment, as those providers will charge higher fees to subsidise these luxuries.

When it does make sense,

When it does not,

Yes,...