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, going to about $192 in Nov 2025, while getting back at least $1,320 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 Card. You’ll get over $3,300 in value your first year, with $2,200 in welcome offers and $890 in travel benefits. Even with a $799 annual fee, you’re still ahead.
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Fuel your adventures with points
Signup to get expert guidance and the latest Canadian points and miles tips. Learn how easy it is to travel more 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 top travel cards like the American Express® Platinum Card and Business Platinum Card. Each gives about $2,200 and $2,640 in value for a $799 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
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Earn 120,000 bonus MR points
$4,062 First-Year Value
$799 Annual Fee
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 your 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 Card, tend to be most valuable for most Canadians.
American Express® Cobalt Card
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Best Everyday Card
Earn 5x points per $1 on eats & drinks in Canada, up to $2,500 per month.
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 real value if you use them, but when you pick cards that fit your needs, the savings often 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 on the same reservation with Aeroplan® co-branded cards like the TD® Aeroplan® Visa* Infinite and CIBC Aeroplan® Visa* Infinite.
Best Aeroplan® Cards
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Earn 85,000 Aeroplan® points
$4,180 First-Year Value
$599 Annual Fee
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As a family of five, checked bags with the TD® Aeroplan® Visa* Infinite is already worth more than the $139 annual fee. We’ll 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® American Express® and Marriott Bonvoy® Business American Express®. This certificate alone can be worth hundreds of dollars at some Marriott properties, easily outweighing the $120 and $150 annual fees.
We’ve used ours for amazing stays that would have cost over $500 and even $900 a night. You can explore some of our favourite hotels for free night certificate redemptions.
Best Welcome Offers
The Value of Redemptions
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Cost vs Benefit by Card Tier
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Bottom Line
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