IF YOU are heading for university in the autumn, a bank account is probably the last thing on your mind. But it's probably a good idea to choose and open an account before the end of the summer so that everything is up and running before term starts.

Most of the big banks offer generous deals to students, and all are keen to tempt undergraduates with various offers and incentives. But some of the sweeteners might leave a bitter taste. Discounts and freebies are often available with your NUS card. And what about the lure of £100 from Lloyds TSB? Michelle Slade of Moneyfacts says: "The cash incentive of up to £100 from Lloyds TSB sounds appealing, but you only get £20 automatically. You earn the other £80 only if you recommend four friends, all of whom have to open the account by September 15 and then pay in at least £200 of their student loan by the end of October."

Some incentives are more worthwhile. NatWest, for example, gives new customers a five-year Railcard worth £120, which could prove valuable if you intend to travel by train. But try not to be too distracted by cash offers or discounts; the interest rates and overdraft facilities are much more important.

So how do you choose a student account? It's a good idea to find out if there is a branch on the campus or near to your accommodation. It might be the first time you have managed your own money, so chances are you will need a little help. Some banks even offer student advice teams to assist new customers.

You might also want to check out the online facilities if you are happy to bank over the internet. If you plan to bank by phone, make sure you can call a free or local rate telephone number.

A number of student bank accounts pay credit interest. Abbey, for example, pays 3.93% interest on any credit balance. But for many students a generous overdraft is more important. All student accounts offer interest-free overdrafts, but the limits vary. A limit of between £1000 and £1500 in the first year of your degree is fairly typical. Think too about your future overdraft needs. The limits usually rise each year, but again it differs from bank to bank. Bank of Scotland offers one of the most generous overdraft limits, allowing you to borrow up to £3000 in the first year.

However, it's not guaranteed. Slade says: "The higher limits are often quoted as up to', so when you come to apply, if your credit rating is not A1 or you don't match the bank's perfect student' score card, you may be offered a somewhat lower limit."

If you are struggling to stick to the overdraft limit, contact your bank. It might allow you to borrow more, although you will usually have to pay interest on the extra borrowing. But if you breach your limit without first checking with your bank, you will be charged a higher interest rate and could be stung by a monthly fee.

You should get a debit card with your bank account, but some also come with a credit card, often with a limit of up to £500. You don't have to take out a credit card with your own bank, but students often struggle to find a better deal because they typically have no credit record. But watch out - credit cards can be convenient, but they can also be expensive. Slade says: "However tempting a credit card can be, treat it with caution. It can be a struggle to pay back the debt if you have no regular income, especially when the interest rates tend to be higher than average."

Top finance tips for students
1. Draw up a weekly budget - and stick to it.

2. Keep a regular check on your bank account balance. If you have a lot of money in the account at the beginning of the academic year, why not shift some across to a savings account and earn a higher rate of interest until you need to draw on the funds?

3. Try to stick to your overdraft limit. If you need to borrow more, always contact your bank first.

4. Claim all available discounts using your NUS card.

5. Shop for food with friends - buying in bulk can save money. And eat on campus rather than in bars and restaurants.

6. Pay with cash whenever possible. Use your credit card only as a last resort.

7. Get a part-time or summer job - as long as it doesn't interfere with your studies. You shouldn't have to pay tax if you earn less than £5435. But make sure you sign a P38(A) form.

8. Buy your course books second-hand. You might find a bargain on websites such as www.ebay.co.uk or www.sellstudentbooks.com, or in a second-hand bookshop. If you keep the books in good condition, you might even be able to sell them on later.

9. Beware of the risk of fraud, especially if you live in shared accommodation. Always destroy any mail that includes your bank details. It might be a good idea to arrange for your cards, cheque books and other banking information to be sent to your home address. And make sure you don't give your PIN or card to anyone.

10. Take cover. Most students don't think they need contents insurance because they don't think they have anything valuable. But they are easy targets for thieves, often because they tend to congregate in the same area of the city and are pretty lazy about locking doors and windows. The typical student kit is also pretty valuable - think about those laptops, iPhones and other gadgets. Specialist student insurer Endsleigh is the only insurance company endorsed by the NUS, but check out other firms for competitive premiums.