Define: Maintenance Fee

Business, Legal & Accounting Glossary

Definition: Maintenance Fee



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Full Definition of Maintenance Fee


In the financial sense, a maintenance fee is a fixed charge that covers the operating expenses of a brokerage account. Usually, the maintenance fee is charged annually. Some brokers, especially full-service brokers, may impose the maintenance fee as an alternative to charging a per-trade fee on each transaction. Sometimes, a fund may have a maintenance fee if its value is less than a certain dollar amount or if the fund becomes inactive. An asset management account, which combines banking services with brokerage features, and IRAs are examples of funds that typically have a maintenance fee. A maintenance fee may also be deducted from a mutual fund to cover operating expenses. Additionally, owners of annuities sometimes pay a maintenance fee to cover the administration of the contract, including various customer services, statement preparations, mailings and premium notices.


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https://payrollheaven.com/define/maintenance-fee/
Modern Language Association (MLA):
Maintenance Fee. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 07, 2020 https://payrollheaven.com/define/maintenance-fee/.
Chicago Manual of Style (CMS):
Maintenance Fee. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/maintenance-fee/ (accessed: April 07, 2020).
American Psychological Association (APA):
Maintenance Fee. PayrollHeaven.com. Retrieved April 07, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/maintenance-fee/

Definition Sources


Definitions for Maintenance 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: 7th February, 2020