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moneysense.ca, 21/02/06
Are Credit Cards Worth the Annual Fee?
Some credit cards charge an annual fee and provide more generous rewards. Are these cards worth their annual fee? To find out, let’s compare the no-fee American Express AIR MILES credit card with the Gold card that carries a $50 annual fee. One AIR MILE is worth about 13.5¢, so the Gold card earns more rewards than the no-fee version only when more than $22,200 is spent.
Similarly, the popular CIBC Aerogold VISA card charges a $120 annual fee and earns one Aeroplan Mile for every dollar of spending. Since an Aeroplan Mile is worth about 0.83¢, a spending of $14,500 on the card just earns back the annual fee. Credit cards that charge an annual fee might be attractive for features like a lower interest rate, but are not worth the slightly better rewards in most instances.
moneysense.ca, 21/02/06









I agree. I prefer a no fee cared that gives me money back — then I can spend it however I like.
It’s always worth to ask if they can waive these fees (if you a good customer and have lot of business with the bank). Maximum, they can say you “No”.
Carnival of Personal Finance #37
Welcome to this week’s edition of the Carnival of Personal Finance. The MoneyBlogNetwork is proud to be hosting today. As a summary of each piece, we are listing each author’s reason for submitting the post to the carnival (for those…
Can you evaluate whether the RBC Avion card is worth the fee?