Are the days of free banking over?

First Direct has announced plans to charge customers a monthly fee unless they deposit at least £1,500 a month in their current account. Are other banks set to follow suit?

First Direct has just announced that as of next February it intends to charge customers a monthly £10 fee if they don't keep, or deposit, at least £1,500 a month in their current accounts. There had been speculation for some months that free banking in the UK was not long for this world: retail bank profits have been hit by a series of regulatory rulings against bank charges for credit cards and unauthorised overdrafts, so it makes sense that they would try and claw the cash back somehow. The surprise, however, was that the first to break ranks was First Direct, which has long been one of Britain's best-loved banks.

Why have First Direct introduced current account fees?

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Emily Hohler
Politics editor

Emily has worked as a journalist for more than thirty years and was formerly Assistant Editor of MoneyWeek, which she helped launch in 2000. Prior to this, she was Deputy Features Editor of The Times and a Commissioning Editor for The Independent on Sunday and The Daily Telegraph. She has written for most of the national newspapers including The Times, the Daily and Sunday Telegraph, The Evening Standard and The Daily Mail, She interviewed celebrities weekly for The Sunday Telegraph and wrote a regular column for The Evening Standard. As Political Editor of MoneyWeek, Emily has covered subjects from Brexit to the Gaza war.

Aside from her writing, Emily trained as Nutritional Therapist following her son's diagnosis with Type 1 diabetes in 2011 and now works as a practitioner for Nature Doc, offering one-to-one consultations and running workshops in Oxfordshire.