Lloyds TSB Scotland hits student account trail

Lloyds TSB Scotland has announced the launch of its 2007 Student account, offering students planning to go to university this autumn over £200 worth of money saving benefits.

As well as an interest-free overdraft of up to £1,500 in the first year, students will benefit from up to £75 in cash, free mobile phone insurance, a free NUS Extra card and the option to apply for a Lloyds TSB Student Mastercard Credit Card.

The bank is the exclusive banking partner of the NUS Extra card, which saves a student around £50 every year and gives customers access to a wide range of discounts and the chance to win 'Dream Tutorials' with 'inspirational' business leaders.

In addition, students will have access to Lloyds TSB Scotland's Internet and Telephone banking services, giving them access to their account 24 hours a day, 7 days a week 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.

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

An authorised overdraft rate of 8.0% EAR unauthorised rate 29.8% EAR is in operation.

Students who exceed their authorised overdraft limit won't be charged a fee the first time it happens. Thereafter, the fee is £30 with a maximum of three times in any one month.

A Lloyds TSB debit card is provided with the account. Maximum daily Cashpoint withdrawal of £200.

Meanwhile, millions of graduates are set to see the interest rate on their loans double when the rate - which is linked to the retail prices index - is increased from 2.4% to 4.8% this September at its annual review.

Worth pointing out is that graduate students start paying their loans from the April after they graduate. However, once they they are in gainful employment and once they hit an earnings threshold of £15,000 p.a. repayments will be calculated as 9% of their earnings.

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2007-06-20 10:26:03 © Moneyextra.com