So what can you get for a tenner?

A monthly fee of £10 can barely buy you a broadband connection, but it could make the world of difference to an estimated 200,000 First Direct customers who are on the brink of being charged £120 a year for their current account.

Analysis from MoneyExpert.com has revealed that there are six accounts on the market that charge around £10 per month but do not stipulate that their customers must have a minimum income or deposit a monthly sum equal to or above the £1,500 demanded by First Direct.

The independent financial comparison website says that the perks and incentives on offer through these accounts underline the comparatively poor deal offered to those First Direct customers who do not meet the bank’s new terms.

Of the six accounts, the gross AER on a £1,000 balance is 1.88 per cent, although the highest credit interest rate is as high as 3.04 per cent with Smile’s Smilemore account. Four out of the six include travel insurance in the deal and three of the six offer mobile phone insurance for free.

Other perks on offer include accidental death cover and reduced cost children’s health cover, commission free foreign currency and even a variety of discounts at restaurants, theme parks and retail outlets.

All six accounts give customers preferential rates on other products for joining a packaged account scheme. And MoneyExpert.com says that four out six offer breakdown cover in their deals too.

Sean Gardner, MoneyExpert.com’s chief executive, said: “Average monthly fees for the 33 packaged accounts on the market are only around £11.50 a month – not far off the First Direct charge.

“Whether the First Direct move heralds the beginning of the end for free banking in the UK or whether it merely sparks greater interest in packaged accounts remains to be seen. It’s certainly healthy for consumers if it makes them actively consider alternatives. Too many people settle for awful rates with their providers because of a misplaced sense of loyalty.

"If First Direct's move is a success then others are likely to follow in one shape or another. This could see the current account market change as providers consider offering standard account holders perks in exchange for a monthly fee – much like the packaged account system.”

However MoneyExpert.com is urging customers to carefully weigh up the benefits before they switch to a packaged account as the perks have to add value. Many fee-free accounts can offer better deals if the extra incentives aren’t used in the long run.