July 3, 2025 · 11 mins read
Santhosh Kumar
When we inquire, What Are The Annual Charges For A Credit Card?, we're truly inquiring: "How much does it take a toll to keep that small plastic—or virtual—card in our wallets or phones each year?" Most banks in India charge annual fees for credit cards, which can range from nominal to substantial, depending on the card's features, benefits, and target customer segment. For example, an essential entry‑level card may cost ₹499 per annum, whereas a premium travel or way of life card may set you back ₹5,000 or more. These charges often come with complimentary add-ons, such as Relax Getaways, Turning Point Rewards, insurance benefits, and concierge services. The trap is to calculate if the esteem you infer from the card exceeds the fetch you cause annually.
If you hold multiple credit cards from the same bank, you might think: "Am I paying separate Annual charges for each?" The brief reply is yes—unless the bank offers an Annual charge waiver or bundling advantage. A few banks permit you to combine spending limits across cards, so achieving a certain amount of annual added-up spending can earn you charge waivers on all your cards.
An Annual charge is the yearly fee that a credit card holder demands to use the card. This charge underpins the operation of the rewards program, including preparing exchanges, extortion assurance, insurance scope, and any additional benefits associated with the card—such as concierge service, airport lounge access, travel insurance, etc.
Revenue stream: Makes a difference in banks recovering issuing and adjusting costs.
Perks funding: Supports complimentary or reduced benefits.
Risk management: Cards with higher limits and highlights carry more prominent hazards and costs.
Customer segmentation: Differentiates between entry-level cards and premium ones.
These cards are ideal for first-time clients or individuals with low spending habits.
Sample charge: ₹499+GST
What you get: Fundamental cashback on basic supply or utility spends, online buys, fuel extra charge waivers.
Example: The Bajaj Finserv RBL Bank Card (₹499) offers 5% cashback on daily spending.
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For direct spenders.
Sample charge: ₹1,499–₹2,999 +GST
Benefits: Improved rewards, travel-related advantages like airport lounge access, elite credits, and fuel waivers.
Example: The Axis Bank Neo Credit Card (₹1,499) offers cashback on food, charge payments, and dining.
Designed for visiting voyagers and spenders.
Sample charge: ₹3,000–₹10,000+ +GST
Benefits: Numerous relaxation benefits, comprehensive travel insurance, rewards focused on worldwide usage, golf benefits, and lifestyle offers.
Example: HDFC Infinia (₹10,000+), SBI Elite (₹4,999), ICICI Amazon Pay (₹3,499, frequently waivable).
Charges change by bank and partner.
Examples: Flipkart, Amazon, Ola, HDFC, SBI, Axis, Citibank, American Express
Charges: ₹999–₹5,000+
Markup: Reward rewards on accomplice spends, rebates, and extraordinary deals.
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If you hold two separate cards from the same bank, each one causes its Annual fee.
Many banks expand waiver offers if you meet combined investing limits over all your credit cards.
For example:
Axis Bank: Spend ₹2 lakhs overall on Axis credit cards → waiver on subsequent annual fee.
HDFC Bank: Spend ₹3 lakhs add up to → waiver on base and add‑on cards.
SBI Card & Pay: A combined ₹1 lakh spent over SBI cards can trigger waivers on all but the highest tier.
Some banks consider the add-on or supplementary cards portion of the essential account, so the charge waiver applies to keys and add-on cards when the limit is met. Continuously check terms: waiver approach isn't standard over providers.
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Turning point Waivers: Spend a certain Annual sum on your card to get a charge waiver or statement credit.
Spend‑Based Waivers: Many banks offer a first‑year waiver and consequent waivers if you meet the least spending in the earlier 12 months. For this case, HDFC Infinia offers a first-year waiver and a subsequent waiver if ₹5 lakhs is spent.
Retention offers: If your card is almost out of recharge, you can contact the bank to request a waiver, particularly if you've used the card responsibly and have a clean record.
Add‑On Card Strategy: Issue a supplementary card (e.g., spouse's card). A few banks offer diminished or no charges on the moment card.
Product Switching: Switch your premium card to a lower‑fee variation marketised inside the same bank.
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Identify cost‑benefit:
1: Annual charge = ₹3,000
2: Lounge visits (₹500 each × 4 = ₹2,000)
3: Cashback of 1% on ₹3 lakh spend = ₹3,000
4: Discounts, insurance, concierge = ₹1,000
5: Add up to esteem = ₹6,000 > ₹3,000 charges → Worth it.
Include other costs:
1: Late‑payment charges
2: Interest rates (30–42% p.a.)
3: Foreign cash markup (2%–3.5%)
4: Cash withdrawal fees
If you don't completely abuse advantages, a no‑frills, no‑fee card may serve better—for periodic use.
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Card (Bank / Type): RBL Bank ShopRazer (co‑branded) Annual charges + GST: ₹799 Perks & Benefits: 5% cashback on accomplice spends; no lounge
Card (Bank / Type): SBI Prime (premium) Annual charges + GST: ₹2,999 Perks & Benefits: 12 relax visits; ₹5,000 point of reference credit; OTT vouchers
Card (Bank / Type): HDFC Regalia Voyage (travel) Annual charges + GST: ₹2,500 +GST Perks & Benefits: 2 household relax visits; 6 compensate focuses per ₹150; insurance
Card (Bank / Type): Axis Bank Magnus Annual charges + GST: ₹10,000 Perks & Benefits: Priority Pass; golf sessions; SME rewards; concierge
Card (Bank / Type): ICICI Amazon Pay Annual charges + GST: ₹3,499 Perks & Benefits: 5% cashback on Amazon; Prime enrollment bundled
Card (Bank / Type): Kotak Essentia Platinum Annual charges + GST: ₹750 Perks & Benefits: Fuel additional charge waiver; reward focuses; 0.25% fuel waiver
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1: Multiple investing categories (travel, feasting, groceries)
2: Backup card for emergencies
3: Co‑branded preferences over partners
Fee waiver over all HDFC credit cards when the essential holder spends ₹3 lakhs over all cards in a year. The waiver applies to all if each card meets its claim edge, too.
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1: Families spend checks over cards.
2: If added up to spending overall, Axis cards hit ₹2 lakhs → charge waiver on one auxiliary card.
Primary + add‑on cards are seen as partitioned in some cases; collective spending over both is still substantial for a waiver on both cards if the approach permits.
1: Track expiry dates
2: Plan spends close commemoration to cross thresholds.
3: Talk to relationship/product supervisors for bundling
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You have SBI Prime (₹2,999 charge). In one year:
1: 12 relax visits @₹500 each = ₹6,000
2: ₹5,000 points of reference payback earned
3: Total advantage = ₹11,000 > charge → justified.
Holding HDFC Regalia (₹2,500) + HDFC Millenia (₹500)
Annual spend ₹3 lakhs over both.
1: Combined spend meets waiver limit → both charges waived.
2: You still appreciate relaxing get to (Regalia) and 3–6x compensate for points (Millennia).
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1: Premium Axis Magnus = ₹10,000 charges with gigantic perks.
2: Then again, Axis Benefit (₹3,000) + Axis Neo (₹1,499)
3: Total benefits may match Magnus. But way of life inclinations and utilisation recurrence matter.
Interest Rates: Unclear or missed payments lead to Interest on rotating balances—often 30–42% per annum.
Late Payment Fees: Typically ₹100–₹1,000.
Goods and Service Tax (GST): Added to the base charges (₹1,499 + 18% = ₹1,767).
Foreign Exchange Markup: 2 -- 3.5% charged on universal exchanges (indeed on premium cards).
Complementary Add‑On Fees: Some banks charge partitioned charges for add‑on cards if not bundled with a waiver.
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1: Annual Spend – Do you easily hit the edges?
2: Use of Advantages – Relax visits, flights, premium services?
3: Waiver Qualification – Is there a waiver approach with limits you can meet?
4: Better Alternatives – Are there no‑fee choices with sufficient value?
5: Budget Suggestions – Can you afford it, indeed, if it is underutilised?
1: Track advantage use monthly.
2: Use multiple cards deliberately, adjusting categories based on spending (e.g., feasting and eating cards, travel and travel cards).
3: Plan spends close commemoration to hit waiver marks easily.
4: Request a retention waiver if you don’t need to recharge a less‑used card.
5: Review Annual to make, beyond any doubt, the card still fits your lifestyle.
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1: Indian banks are progressively marketising more straightforward waiver schemes.
2: Premium advantages (open lounges, concierge) are being democratised to mid‑tier tiers.
3: Tech‑focused challenger banks may offer no‑fee credit but charge higher Interest or limit perks.
1: Ensure each card has a clear purpose (e.g., HDFC Millenia for Amazon spends, Regalia for lounge access).
2: Stack spends to meet waivers over the whole wallet.
3: Keep track of charges and recharging dates to renegotiate or upgrade.
Consider closing underutilised cards periodically to protect your credit scores and streamline your billing.
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1: Forgetting charges waiver periods and paying charges unnecessarily.
2: Exceeding EMI transformation judiciously – tall Interest may invalidate waiver benefits.
3: Overspending for a waiver: never spend additional exclusively to postpone an unimportant fee.
4: Missing payment due dates – late charges can dominate perks.
5: Neglecting add‐on card per‑card charges when marketised separately.
1: Credit use proportion: Two low limits can spread your usage vs one huge limit.
2: Account age: Keeping cards longer builds a strong history.
3: Payment discipline: Annual charges are reminders—ensure you’ve got sufficient funds.
4: A mix of credit: multiple credit lines expand your profile, which can be positive.
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Yes—if you're a profitable client with great spending conduct, banks regularly give retention offers or bundle waivers if you hold multiple cards.
A few do. In numerous cases, if the essential card’s charges are paid or deferred, the bank still charges the add‑on card unless part of a bundled waiver policy.
Yes, closing a long-standing credit card may diminish your credit history and increase your credit utilisation ratio—both can lower your credit score.
They are partitioned. Indeed, if your Annual charge is deferred, you'll still pay the FX markup (2–3.5%) at the point of execution internationally.
No. The charges waiver is a rebate marketised by the bank, not an assessable advantage. There is no risk of a pay charge for you.
Yes, most banks permit item change. Any charges you pay may carry forward, and qualification for a waiver may reset based on the unused variant's terms.
Ordinarily, yes, unless the account has been recovered or the bank allows a focused transfer—so recover it sometime recently by cancelling or closing the account.
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