LONDON (Reuters) - HSBC Holdings has become the first major bank to say it will start charging for a current account, raising the prospect that other lenders will end free banking.

HSBC’s online banking arm First Direct is to charge 10 pounds per month for customers who do not deposit 1,500 pounds per month or maintain an average balance of 1,500 pounds.

Sources at several leading banks told Reuters in April that free current account banking could end as banks sought to recoup money lost as regulators clamped down on fees in other areas, and First Direct’s move could herald the start of that process.

“Early on you will see some hesitancy (by other banks to follow), but it could be the start of a material market trend,” said Nick Sandall, head of retail banking at Deloitte.

Related posts:

1. HSBC Ordered to Monitor Accounts for Terrorism, Money Laundering
2. HSBC direct deposit paychecks maybe not available
3. HSBC Pays Less, Increases Overdraft Fee
4. Is Richard Cranium in charge of HSBC global security?
5. Direct Merchants Credit Card