Annual Fee

Business, Legal & Accounting Glossary

Definition: Annual Fee

Full Definition of Annual Fee

Annual Fee – also known as the Annual Management Charge – is a fee paid on an ongoing annual basis by you to the manager of your investment or life insurance /pension policy. These charges vary from company to company and from product to product but usually are in the range of 0.35% to 2%.

Annual fees are generally smaller than upfront charges and it is easy to make the mistake of thinking they are less important. This is not necessarily the case.

The percentage of the annual fee may be small but remember your investment or policy may reasonably be expected to grow and, assuming it does (otherwise why are you investing in it!) then the amount of money you actually pay in annual management charges grows with it, even though the percentage levy remains unchanged.

Beware of special offer investments which waive the initial charge but have an annual fee at the top end of the scale – you won’t be saving yourself any money!

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Annual Fee. Payroll & Accounting Heaven Ltd. August 06, 2021
Chicago Manual of Style (CMS):
Annual Fee. Payroll & Accounting Heaven Ltd. (accessed: August 06, 2021).
American Psychological Association (APA):
Annual Fee. Retrieved August 06, 2021, from website:

Definition Sources

Definitions for Annual Fee are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 15th February, 2020 | 3 Views.