Lloyds has launched a new student current account that comes with a fee-free overdraft of up to £1,500.

 The bank’s 2017 Student Current Account also comes with a free NUS extra card and pays up to 15% cashback for spends at selected retailers.

 The interest-free and fee-free tiered overdraft gives students up to £1,500 of planned borrowing in years one to three, and can be extended to £2,000 in years four to six for those studying longer.

 Everyday Offers also gives account holders up to 15% cashback on their purchases at retailers including Sainsbury’s, Morrison’s, Costa, Nando’s, Just Eat, Superdrug and New Look.

 NUS extra cards give students access more than 200 high street and online discounts in the UK, while a free International Student Identity Card opens up a further 42,000 discounts worldwide.

 Other benefits include free text alerts to help customers manage their finances, a contactless debit card, the option for mobile payments and access to the Lloyds banking app.

 Emma Greenwood, head of current accounts for Lloyds Bank and Bank of Scotland, said: “We’re delighted to launch this year’s student account with a range of great features designed to help students manage their money.

 “As a leading student account provider, we know all about the challenges students face with their finances.

 “Access to their money will never be more than a tap away with our five star mobile app and our new range of text alerts will give them even more control over their finances.

 “And not forgetting our range of special offers, including a free NUS extra card that helps students stretch their money even further.”

 Santander is also offering a fee-free overdraft of £1,500 with its 2017 student account, which also comes with a free four-year 16-25 railcard that can save users up to a third on train travel.

 Nationwide is offering students an overdraft of £1,000 in year one, £2,000 in year two then up to £3,000.

 With Natwest, students can apply for a £500 overdraft in their first term and increase it to £2,000 as their studies continue.

 Customers opening a student account with NatWest also get a National Express Young Persons Railcard, which gives you a third off coach travel for four years.