Annual Maintenance Charge (AMC) is a yearly fee charged by banks or financial service providers to maintain and service products like credit cards, debit cards, Demat accounts, or investment platforms.
Annual Maintenance Charge (AMC) is a recurring yearly fee collected to cover the cost of account maintenance, customer support, technology infrastructure, and other related services. AMC is commonly applicable to credit cards, debit cards, Demat accounts, trading accounts, and some investment services.
In many cases, banks waive the AMC if certain conditions are met—such as minimum annual spending on a credit card, maintaining a specific account balance, or holding a salary account. AMC amounts vary depending on the product type, features offered, and the service provider.
Understanding AMC is important because it affects the total cost of using a financial product. Customers should always check AMC details before opening an account or choosing a card to avoid unexpected charges.
"A credit card has an AMC of ₹1,000 per year. If the cardholder spends more than ₹1 lakh in a year, the bank may waive the AMC for the next year."