You’ve probably wondered if paying credit card annual fees is really worth it. At first, paying $120 or even $799 can feel like throwing money away compared to a $0 fee card.
You’ll find that the best reward cards in Canada often give you more value than the annual fee.
I see annual fees as an investment that pays you back through flights and hotels, making travel nearly free.
Take the American Express® Cobalt. You’ll pay a $156 annual fee (rising to about $192 in Nov 2025), but you’ll get back over $1,300 in value in your first year. That’s more than worth it in my books.
Here’s how to figure out if annual fees are worth paying for your travel goals.
How to Offset Annual Fees
You’ll get far more value than the annual fee with the best reward cards and save money through three key areas that offset the cost.
First, you’ll earn plenty of points from welcome bonuses and everyday spending.
Next, you’ll also get travel benefits worth hundreds of dollars, like free checked bags, free hotel nights, lounge access, and travel insurance.
Finally, you’ll maximize redemptions by using points for flights, hotels, and premium travel.
When you combine all three, you’ll often get back much more than the annual fee. That’s why annual fees are worth it when you choose cards that fit your spending and travel goals.
Take the American Express® Platinum Cards. You’ll get over $4,000 in value in your first year, putting you well ahead of the $799 annual fee.
The AWP Newsletter
Fuel your adventures with points
Sign up to get your free guide. Get our newsletter with credit cards and points tips. See how easy it is to travel for nearly free.
The AWP Newsletter
Fuel your adventures with points
Sign up to get your free guide. Get our newsletter with credit cards and points tips. See how easy it is to travel for nearly free.
How Points Offset Annual Fees
You’ll find that points alone often cover a card’s annual fee.
Large welcome offers and everyday earning make travel cards a great way to save money and travel for nearly free.
Points from Welcome Offers
You’ll find that most welcome offers give you more value than the annual fee, making it worth keeping the card for the first year.
You’ll get more value than the annual fee with premium travel cards like the American Express® Platinum and Business Platinum. With over $4,000 in value in your first year, you’ll get far more than the $799 annual fee.
You’ll want to consider if the ongoing earning rate and benefits still fit your spending and travel habits after the first year.
American Express® Platinum Cards
-
-
Welcome Points: 120,000
Welcome Value: $5,100
Annual Fee: $799
AWP TIP
You’ll want to keep your card for at least a year to avoid losing your welcome offer.
If you decide to close it, wait until the annual fee posts and consider downgrading to a no-fee card to keep any Membership Rewards® points.
Points from Ongoign Spend
You’ll want to pick cards that earn plenty of points where you already spend.
When your top expenses earn more points, you’ll quickly offset the annual fee.
If a card earns extra points on gas but you take public transit or drive electric, it won’t add much value.
Cards that earn more on food, groceries, and travel, like the American Express® Cobalt, tend to be most valuable for most Canadians.
American Express® Cobalt Card
-
Best Everyday Card
Annual Value: $260
Annually Fee: $191.88 ($15.99 Monthly)
As a family of five, the American Express® Cobalt Card fits our spending habits perfectly, as it likely does for many Canadians.
Earning plenty of points with 5 points per dollar on groceries and dining easily outweighs the annual fee.
How Benefits Offset Annual Fees
You’ll get the most from your card when the benefits match your travel style.
Benefits only have value if you use them. When you choose cards that fit your needs, the savings can cover the annual fee and give you experiences you wouldn’t otherwise have.
Flight Benefits
Flight benefits easily offset the annual fee.
You’ll get free checked bags for you and up to eight people travelling with you with Aeroplan® co-branded cards like the TD® Aeroplan® Visa* Infinite and CIBC Aeroplan® Visa* Infinite.
Best Aeroplan® Cards
-
Best Premium Aeroplan® Business Card
Annual Value: $1,505
Annual Fee: $599
-
Best Mid-Tier Business Aeroplan® Card
Annual Value: $705
Annual Fee: $149
-
Best Primeum Aeroplan® Card
Annual Value: $1,805
Annual Fee: $599
-
Best Mid-Tier Business Aeroplan® Card
Annual Value: $480
Annual Fee: $180. 1st Year Rebate
-
Best Primeum Aeroplan® Card
Annual Value: $1,805
Annual Fee: $599
-
Best Mid-Tier Aeroplan®
Annual Value: $705
Annual Fee:$139. 1st Year Rebate
-
Best Mid-Tier Aeroplan® Card
Annual Value: $705
Annual Fee:$139. 1st Year Rebate
As a family of five, the checked bag benefit with the TD® Aeroplan® Visa* Infinite is already worth more than the $139 annual fee.
We save $300 in checked bag fees with just one North American round trip.
Hotel Benefits
Hotel benefits can easily offset the annual fee.
You’ll get an annual free night certificate with the Marriott Bonvoy® and Marriott Bonvoy® Business from American Express®.
This certificate can be worth $350 to over $900 a night, easily outweighing the annual fees. Check out some of our favourite free night certificate redemptions.
Marriott Bonvoy® American Express® Cards
-
-
Welcome Points: 60,000
Welcome Value: $750
Annual Fee: $150
Redemptions Value
You’ll find that not all points are equal.
The best value comes from transferable points like the American Express Membership Rewards®.
Transferring them to top airline and hotel programs to redeem directly can give you 2.2 ¢ per point or more in value.
Best Amex® Membership Rewards® Card Offers
-
-
Welcome Points: 120,000
Welcome Value: $5,100
Annual Fee: $799
-
Welcome Points: 15,000
Welcome Value: $590
Annually Fee: $191.88 ($15.99 Monthly)
Cost vs Benefit by Card Tier
Credit cards usually fall into three tiers: premium, mid-tier, and no-fee. As you move up, both the annual fees and the value you get increase.
Premium Cards
Premium cards usually have higher annual fees, starting at $599.
They often pay for themselves if you can meet the higher minimum spend and value a premium travel experience. You’ll also need excellent credit.
You’ll get travel credits, unlimited lounge access, and premium travel insurance with cards like the American Express® Platinum and TD® Aeroplan® Visa* Infinite Privilege, and CIBC Aeroplan® Visa* Infinite Privilege.
Best Premium Cards
-
-
Best Premium Aeroplan® Business Card
Annual Value: $1,505
Annual Fee: $599
-
Best Primeum Aeroplan® Card
Annual Value: $1,805
Annual Fee: $599
-
Best Primeum Aeroplan® Card
Annual Value: $1,805
Annual Fee: $599
-
Best Luxury Business Travel Card
Annual Value: $2,385
Annual Fee: $799
Mid-Tier Cards
Mid-tier cards usually have moderate annual fees, starting at $120.
If you’re focused on travel value through points but don’t need high-end benefits, these cards can be a great fit. You’ll also need good credit.
Some of the best mid-tier travel cards include the American Express® Cobalt, TD® Aeroplan® Visa* Infinite, and CIBC® Aeroplan® Visa* Infinite.
You’ll get the most value from your annual fee when you maximize your points earning and redeem directly through airline and hotel programs.
Best Everyday Cards
-
Best Mid-Tier Aeroplan®
Annual Value: $705
Annual Fee:$139. 1st Year Rebate
-
Best Mid-Tier Aeroplan® Card
Annual Value: $705
Annual Fee:$139. 1st Year Rebate
-
Best Everyday Card
Annual Value: $260
Annually Fee: $191.88 ($15.99 Monthly)
No-Fee Cards
Some no-fee cards, like the American Express® Green and CIBC® Aeroplan® Visa*, still let you earn points. You’ll get minimal welcome offers and no added benefits.
If you’re just starting out, have minimal spending, or need a place to keep your Membership Rewards® points active, no-fee cards can be an option. They usually have lower credit requirements.
Best No-Fee Cards Reward Cards
Bottom Line
We believe many reward credit card annual fees are worth paying. Still, they can add up, so it’s worth considering if they make sense for you.
It all comes down to how much you value the points, rewards, and benefits from a card and whether they outweigh the annual fee.
If your return is greater than the annual fee, then the card adds real value for you, and you can feel comfortable paying the fee.
