Although most cash-back cards don’t charge annual fees, cards with higher rewards rates typically do. To determine if a card with an annual fee is worthwhile, calculate whether the cash back you can potentially earn will exceed the fee.
For example, the Blue Cash Preferred Card from American Express has a $95 annual fee, but it lets you earn 6% cash back on U.S. supermarkets. Spending at least $133 per month on that category alone can compensate for the annual fee.