LLOYDS TSB LAUNCHES 2008 STUDENT ACCOUNT

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1 63/08 30 June 2008 LLOYDS TSB LAUNCHES 2008 STUDENT ACCOUNT Lloyds TSB today launches its 2008 Student account, offering those planning to go to university this autumn up to 100 cash for opening an account and recommending it to friends. As well as a tiered interest-free overdraft of up to 1,500 in their first year i, cashstrapped students will benefit from the opportunity to earn up to when they open their account and another 20 for each friend they recommend who opens an account, up to a maximum of 80*. The Student account also comes with a package of financial perks to help them look after the pennies in their university years a free NUS Extra card, one year s free membership to the YHA and 35 free music downloads from emusic ii, as well as having the option to apply for a Lloyds TSB Student Credit Card. Lloyds TSB is the exclusive banking partner of the NUS Extra card, which gives students access to a wide range of discounts on books, clothes, travel, DVDs, CDs, games, magazines, computer and phone technology and offers the opportunity to enter a range of exclusive competitions. In addition, students will be able to manage their money 24 hours a day, 7 days a week, thanks to Lloyds TSB s Internet and Telephone Banking services. They will also have the Lloyds TSB Visa debit card, which can be used at 27 million outlets worldwide and at 61,000 cash machines in the UK. The account has been designed specifically with student finances in mind, offering a tiered overdraft that will help students start their university career on the right financial footing. They can apply for 500 in the first six months, then apply to increase it to 1,000 in months seven to nine, and 1,500 after that. The account also has free weekly balance alerts by text to help them keep track of their money and /more

2 offers free Limit Alert text messages (alerting account holders when they are within 50 of their planned overdraft limit and again when they have entered into their unplanned overdraft) for the first year of study iii. LLOYDS TSB LAUNCHES 2008 STUDENT ACCOUNT 2 Catherine McGrath, director of current accounts, Lloyds TSB said: Starting at university is an exciting time but student life doesn t come cheap and many students will find themselves walking a financial tightrope to ensure that they are living within their means. Selecting the right student account is essential and it is important to do a bit of careful research. Rather than relying on gimmicks and short-term gains, the 2008 account is an all-rounder, giving students the things that they want such as cash, an NUS Extra card, free YHA membership and free emusic downloads and the financial support that they really need to manage their money effectively throughout their academic career. Lloyds TSB also offers an Islamic Student account which is designed to meet the requirements of Islamic law (Shariah). The account neither charges nor receives interest and deposits held in the accounts will not be invested in certain industries, such as gambling or alcohol, which conflict with Islamic law. The Islamic Student account has the approval of a board of Islamic scholars to ensure that it is Shariah compliant. The main benefits of the Lloyds TSB student account include: Interest-free overdraft Lloyds TSB is offering students up to 1,500 interest-free overdraft tiered in the first year: o 500 for the first six months o 1,000 in months seven to nine o 1,500 after that The interest-free overdraft is not tiered in the second and third year and rises to 2, 000 in years four to six. o 1, 500 in years 2 & 3 of study o 2, 000 in years 4, 5 & 6 of study Up to 100 cash 20 when they open their account 20 each time you recommend a friend, up to a maximum of 80 for four friends. The friends will need to open their account by 15 September and pay in a minimum of 200 or a student loan of at least the same amount by 31 October 2008.

3 LLOYDS TSB LAUNCHES 2008 STUDENT ACCOUNT 3 Free NUS Extra Card Lloyds TSB is the exclusive banking partner of NUS Extra. The card gives discounts on books, clothes, travel, DVDs, CDs, games, magazines and computer and phone technology at loads of high street names. Access to exclusive competitions. Free one year s YHA membership Free YHA membership for a year, offering access to 4,000 hostels in more than 90 UK and overseas destinations. Free emusic downloads Lloyds TSB student account holders will be eligible to receive 35 Lloyds TSB Student Credit Card free emusic downloads if they are first-time users of emusic. Option to apply for a Lloyds TSB Student Credit Card, with a typical 19.9% APR variable with a minimum limit of 500 and up to 56 days interest free credit on purchases. Text alert Service Free weekly balance update text alerts for students registered for Internet Banking, Free Limit Alerts which let you know when you are 50 from planned overdraft limit and when you are over the limit. Free for the first year of study Additional service Internet and Telephone Banking Free mini statements and balance updates once a week by text 24/7 telephone support Access to nearly 2,000 branches and 55,000 cash machines across the country Students can open an account at any Lloyds TSB branch, by phone on or online at If you need to call us from abroad, or prefer not to use our 0845 number, you can also call PhoneBank on Notes to Editors: -ends- The Lloyds TSB full student account offers: Up to 1,500 interest-free overdraft for students in years one, two and three (subject to status). The overdraft is tiered in the first year; 500 for the first six months, 1,000 in months seven to nine and 1,500 after that. For students on longer courses, an interest-free overdraft of up to 2,000 is available during years four, five and six. In the event of going overdrawn beyond the interest-free limit, interest is only charged on the amount above the interest-free limit (e.g. a third year student who went overdrawn by 1,800 (within an agreed 1, 500 facility) will only pay interest on 300 not the whole 1,800). Planned overdraft rate 0% EAR, unplanned rate 8.2% EAR in the first year. This does not apply to the Islamic Student account. Students who exceed their planned overdraft limit won t be charged a fee the first time it happens. Thereafter, they will pay a flat monthly fee of 15 and then a lower unplanned borrowing fee on a daily basis, irrespective of how many transactions they make that day. Being over the limit by less than 25 will cost 6 per day, from 25 to 100 will cost 15 per day and over 100 will be 20 per day. Lloyds TSB debit card provided with the account. Maximum daily Cashpoint withdrawal of 200. Option to apply for a Lloyds TSB Student Credit Card must be 18 or over and a UK resident.

4 The emusic offer is only available to first time emusic customers. Internet access, registration and credit or debit card Lloyds TSB Early Student account Lloyds TSB also offers an Early Student account for those students who would like to open an account before their place at university or college is confirmed. We will check that their place is confirmed in August and automatically upgrade their account to a full Student account. o 200 interest-free overdraft (subject to status) o Free one year YHA membership o 35 free emusic downloads (for new emusic customers) and an audio book. o A Lloyds TSB Visa debit card o The option to apply for a Lloyds TSB Student Credit Card must be 18 or over and a UK resident. o Pay-as-you-go mobile phone top ups available at most Lloyds TSB Cashpoint machines o Free balance Text alerts o Internet and Telephone Banking o The option to sign up for Save the Change *The 100 cash incentive offer This is a limited offer for customers who open a Student account. Customers will qualify for the initial 20 when they open their account and it will be paid within 28 days of Lloyds TSB confirming the account holder s university place with UCAS, following results day in August This offer is limited to one incentive payment per new Student account, and one new Student account per person. For each friend referred who opens a Student account by 15 September 2008 and either pays in a minimum of 200 or a student loan of at least the same amount by 31 October 2008, the account holder who made the recommendation will receive 20 (up to a maximum of 80 for four referrals). Payments for referrals will be paid into your student account by 14 November About Lloyds TSB Islamic Student account The Shariah Scholars involved in developing the Lloyds TSB Islamic current account are: - Sheikh Nizam Yaquby Sheikh Nizam Yaquby is a member of the Shariah Committee for several Islamic financial institutions. He has received an MSc in Finance (Canada) and is based in Bahrain. He has been a Professor of Tafsir, Hadith and Fiqh in Bahrain since 1976 and the author of several articles and publications on Islamic finance in English and Arabic. - Dr Muhammed Imran Ashraf Usmani Dr. Muhammed Imran Ashraf Usmani holds a PhD in Islamic Finance. He has also obtained degrees in Islamic Jurisprudence from Karachi. Dr. Usmani is a faculty member of the Jamia Darul Uloom, Karachi and Institute of Business Administration (IBA), Karachi as well as the author of various books on Shariah. - Mufti Abdul Kadir Barkatullah Mufti Abdul Kadir Barkatullah is the Imam at the North London Finchley Mosque. He acquired a Mufti (diploma) in Islamic law and Fazil (Bachelor of Islamic studies) from the Islamic University, India. He also works as a supervisor at the Islamic helpline for Fatwa and as a presenter at Vectone Urdu. - Muhammad Nurullah Shikder Mufti Muhammed Nurullah Shikder is a Barrister-at-Law and is based in Dubai. He received a LLB degree from London Guildhall University. He advises individuals and businesses on Islamic finance. For more information: Eve Speight / Beth Longcroft Lloyds TSB Group Media Relations Tel: / Eve.speight@lloydstsb.co.uk / beth.longcroft@lloydstsb.co.uk

5 i Subject to status ii Only available to new emusic customers iii After the first year of study, Limit Alert is available for 2.50 per month