As well as an interest-free overdraft of up to GBP1,500 in the first year, students will benefit from up to GBP75 in cash, free mobile phone insurance, a free NUS Extra card and the option to apply for a Lloyds TSB Student Mastercard credit card.

Lloyds TSB is the exclusive banking partner of the NUS Extra card, which gives customers access to a wide range of discounts with retailers including Top Shop, PC World, Ticketmaster, CD Wow and Superdrug.

In addition, students will have access to Lloyds TSB Scotland’s internet and telephone banking services, giving them access to their account 24/7, as well as having access to nearly 2,000 branches and 55,000 cash machines across the country. Students can also opt to receive free weekly balance updates by text message.

This year we have focused on a mixture of benefits and special offers to suit everyone’s needs and, to help students manage their finances, we are offering a tiered, interest-free overdraft in the first year. This should help students set off on the right financial footing and avoid them over-spending at the beginning of term, commented Lisa Stephenson, director of marketing, at Lloyds TSB Scotland.

The account also offers free YHA membership for a year, giving account holders access to around 4,000 hostels in more than 90 UK and overseas destinations, AA driving school buy-one-get-one-free driving lesson and 35 free eMusic downloads.