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Weigh a card's annual fee with its benefits to determine whether it's worth these charges.
An annual fee is a flat fee incurred to maintain and manage your credit. This fee helps the bank to offset the costs associated with providing card benefits, such as customer service and security. It also offsets risk to the card issuer.
The annual fee can range from VND100,000 to VND350,000 a year for credit cards with basic spending benefits and utilities. The annual fee of a supplementary credit card is usually lower than that of a primary credit card. Some supplementary credit cards, such as the HSBC TravelOne Credit Card, are free of an annual fee.
An issuance fee is a one-time fee that you'll pay when you first apply for and receive the card. This fee is used to cover the costs of issuing the card to you.
There is no separate annual fee account when paying your credit card's annual fee.
Annual fees are often applied by some banks for debit cards. However, HSBC Vietnam waives the annual fee for debit cards, making it a good choice of payment tool.
The annual fees for credit cards are charged by banks automatically on the credit card account's fixed date. This will appear on your credit card account's bank statement as outstanding balance.
Learn more: How do credit cards work?
Credit cards with good benefits may come with an annual fee. However, it's possible to get a great card without paying the fee.
Here are 3 ways to reduce or waive annual fees when using a credit card:
If you are a Premier customer at HSBC, you can enjoy a perpetual annual fee waiver on your HSBC Premier World Mastercard® Credit Card with global privileges.
Moreover, credit card annual fees may be different because the fee offsets the benefits the card offers. These can include:
It's up to you to decide whether a credit card with an annual fee is worth the rewards and benefits it offers.
Apply now to get a card with no issuance fee, for savings of VND1,500,000.
You can find your card's annual fee in a few ways:
Understanding your credit card statement will help you keep on top of what you owe, when to pay, and any fees applied.
Is an account maintenance fee the same as an annual fee?
No. An account maintenance fee is a monthly or quarterly fee charged by your bank to maintain your account. An annual fee is a yearly fee charged for maintaining and managing your credit.
Do I have to pay an annual fee if I don't use my credit card?
Yes. Even if you don't use your credit card, the bank will still charge an annual fee because your credit card is still effective.
When do I pay the annual fee on my credit card?
The annual fee is usually charged once a year and listed on your first month's statement, and then every 12 months after that. It's usually automatically charged from to your credit card account.
However, some credit cards have an issuance fee, and the annual fee will be charged until the next year, depending on the bank.
For example, if you open a credit card on 27 October 2024, the annual fee will be charged on 27 October 2025. Meanwhile, the issuance fee will have been applied on 27 October 2024.
You should refer to your bank tariffs and monthly credit card statement to see the exact annual fee and its collection cycle.
Have more questions? See our credit card FAQ page for information on all our credit cards.
We hope this article has helped you better understand annual fees, especially for credit cards.
The key to getting the most out of any credit card is ensuring you have the one that makes the most sense for you. It will not only help you use the credit card mindfully to serve your needs, but also help you save, spend strategically, and take control of your finances!
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