How banks wring money from our accounts

MoneyWeek article: There has been a lot of fuss about 'the end of free banking' in UK newspapers recently. And most of it misses one crucial point: the money the banks already gouge out of our accounts.

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There was a lot of fuss in the newspapers last weekend about "the end of free banking" in the UK. First Direct already charges a monthly fee of £10 to those who deposit less than £1,500 a month into their current accounts; Citibank is about to transfer its customers on to its new Plus account (also charging £10 a month) and a variety of other banks have begun to run accounts with charges attached parallel to their free' accounts. But the furore about all this misses one vital point: there is no such thing as free banking available in the UK and there hasn't been for a long time. Instead, the average retail account yields its provider around £230 a year, up from £120 ten years ago.

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Merryn Somerset Webb

Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).

After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times

Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast -  but still writes for Moneyweek monthly. 

Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.