It was, famously, the bank that liked to say yes. Launched in the early 1800s by the Rev Henry Duncan as a collection of banks the "industrious poor" could save with, Trustee Savings Bank produced its first cheque book in 1965, floated on the stock market in 1986 and merged with Lloyds in 1995 to create one of the UK's Big Four banks.
Fans can still pick up a Perspex green and gold TSB "globe money box" on eBay for £10. Complete with the key.
The immediate impact for customers will be relatively low- key, belying the momentous nature of the event actually taking place. Lloyds' customers and TSB customers will receive exactly the same level of service, so few will notice much change beyond a new brand-name above the branch door.
Lloyds has promised a "seamless" transition for customers and is providing all the underlying infrastructure for the new bank. TSB will officially be the eighth largest high street retail bank in the UK, with deposits of £25bn, neatly matched by loans of £25bn.
Although at the outset the banks, still both owned by Lloyds Banking Group, will be the same, TSB will start promoting its own suite of products in the retail market over the next few months.
For the Government, after years of calling for more competition, it is a significant day. UK Financial Investments, which handles the Government's 39pc stake in Lloyds, will be keen to see the new standalone business progress towards a planned float in 2014. Profits from the sale will boost Lloyds value and maintain momentum towards the Government selling out of the business.
It is also an important day for Lloyds' chief executive, Antonio Horta-Osorio. The division is another staging post on the road back to corporate health following the calamities of the credit crunch.
After the Co-op Bank withdrew its bid for the TSB branches known as Project Verde Horta-Osorio resurrected his "Plan B" float option he had always held in his back pocket in case of just such an eventuality. Plan for the best, he said internally, but also be ready for unexpected potholes in the road. Co-op's failure to execute the deal was certainly a major pothole.
Horta-Osorio admits that the TSB divestment enforced on the bank by the European Commission as part of the state-aid redress rules following the taxpayer bail-out will increase competition for Lloyds and Halifax but, he says quietly, competition is good.
"It is an exciting moment," the Lloyds chief executive told The Sunday Telegraph . "For the first time in the UK's history and I think in Europe you will have not an acquisition but a spin-off. We are going to split the Lloyds TSB bank.
"TSB is going to go back to what it used to do, which is local banking and great relationships at local level.
"The TSB is going to be another choice on the high street. A bank which has loans and deposits absolutely matched; has no toxic assets all the toxic assets stayed with Lloyds; has no legacy issues and has very high capital ratios. So, it has all the conditions to be a very strong challenger on the high street."
As the TSB develops its own products and looks to gain more account-holders, Lloyds will start noticing the competition. TSB will have an immediate advantage as, despite having 6pc of the UK's branches it has only 4.5pc of the current account market.
The anomaly is due to the Cheltenham and Gloucester branches, to be part of the new TSB, not previously being able to offer current accounts. That will change from tomorrow.
"I do worry," Horta-Osorio says with a smile. "I never underplay competition. This is not something we are doing because we want to do it. We are doing it because, before I arrived, it was a measure imposed by the European Commission.
"It starts as a seamless and smooth transition for customers. Progressively, as the bank starts to devise its own plan and we float the bank next year, it becomes differentiated.
"TSB has a unique opportunity to increase its share of the current account [market]."
Next week, new rules come into force which will oblige banks to allow customers to switch to a different provider with seven days' notice. Although it is not believed that many customers want to change their bank, the reforms are likely to increase volatility at the margins and will up the stakes again in the battle for customers on the high street.
Many believe the "split and float" option was always the best for Lloyds when it was forced to act by the EC, which raises the question why the bank attempted the deal with Co-op, only for it to fail as the Co-op was revealed to be woefully under-capitalised.
"Given I had to do it and always, from the start, thought it was going to be a long and difficult process, I had to exhaust all possibilities," Horta-Osorio said.
"The right thing to do, even with hindsight, was exactly what we did. Hoping for the better but preparing for the worst.
"We explored all potential buyers, because potential buyers in the sector have synergies with our existing bank which in the case of the Co-op was the treasury.
"Now, in the float, we have to build the treasury [at a cost of £300m] because there are no synergies.
"The best proposal was from the Co-operative Group. The back-up plan which it made sense to immediately start was to prepare the bank in case that deal did not proceed, to have an IPO.
"I think it is remarkable that the Co-op decided not to proceed in April and we are now speaking in September and the bank will be operating on the high street next week.
"In four months, we have put an independent bank on the high street. That was only possible because we always planned for Plan B."
Although there will certainly be more competition TSB will be only slightly smaller than Halifax some have suggested that up against the big players (Lloyds has 30m customers), TSB is something of a minnow. Surely, it won't be able to challenge the incumbents?
"I strongly disagree with that," Horta-Osorio said.
"If you are saying that, then you are also saying that all newcomers are doomed Virgin Money, Aldermore, Metro Bank - are they all doomed?
"What is important for a challenger is the capacity of challenging. Obviously, you start small by definition.
"What is the capacity of challenging? I think there are five things. You have enough capital and this bank will have the highest capital ratio of any.
"Second, you have no legacy issues. Third, no toxic assets. Fourth, you have a loan to deposit ratio of 100, so you have no liquidity issues. Fifth, you have the management team, board and investors willing to support a growth strategy."
TSB already has a chief executive, Paul Pester, and is close to appointing a chairman. A growth strategy will be essential if a successful IPO is to be the result.
Lloyds has recently opened negotiations with the European Commission, which initially set a deadline of November (Xetra: A0Z24E - news) for TSB to be sold. With a sale now the best part of a year away, the EC is likely to extend the timeframe, given that an enforced early move will certainly destroy value.
The delay caused by the Co-op withdrawal has, it seems, turned out to be a blessing in disguise.
"The book value is around £1.5bn," Horta-Osorio said of the TSB. "The Co-op's offer was around half that, at around £750m.
"When we sold a year ago [to Co-op], Lloyds was trading at 40pc book and the price we got was 50pc. Now Lloyds is trading at 1.2 times book. Not only has Lloyds improved a lot but the sector has improved a lot."
If market conditions and the economy continue on their present trajectory, then Horta-Osorio is confident of a 2014 sale, probably at a price well above the present book value.
Horta-Osorio says the TSB spin-off deals with another financial crisis legacy issue for a bank which has become something of a darling of the markets. As the Royal Bank of Scotland (LSE: RBS.L - news) has laboured under a scratchy relationship with the Government, Horta-Osorio has been largely left alone to get on with fixing the bank.
The share price has risen just under 40pc in the past six months and a sale of at least part of the Government's stake is imminent.
TSB will also be launching into an economy that is "healing", according to Horta-Osorio.
When the Lloyds chief executive said he could see some reasons for optimism a year ago, many said he had jumped the gun on the hunt for green shoots. Now, many have joined him in seeing evidence of an upturn.
"The economy is progressively healing," Horta-Osorio said.
"It is going to be a long and difficult recovery. Because when you have a recovery after a necessary adjustment of debt levels, when people go back to living within their means, all the economic recoveries are a bit limited because you have to continue to de-lever.
"I was expecting the economy to increase up to 1pc this year and I was thought an optimist. I think after six months that the signals and the data are better than we thought and I now think the economy will grow 1.5pc this year and [increase] next year.
"The business sector is getting more confident, manufacturing is expanding, they are investing more, which will lead to greater lending. I think the breadth and intensity of the recovery is increasing.
"But it is still at very low levels. We need at least 3pc to start creating employment." Lloyds has increased net lending to business by 5pc when business lending overall is down 5pc.
Horta-Osorio is convinced that overall business lending will pick up as the Bank of England's Funding for Lending Scheme gains traction.
Indeed, with so much optimism around, concerns are already growing that the housing market in particular is in danger of overheating particularly after the Government announced its Help to Buy scheme.
Horta-Osorio does not see a threat certainly not yet and says that if things do become a little too warm, the Government can always turn off the Help to Buy taps.
"Given there is market failure, the scheme is absolutely the right thing to do," Horta-Osorio said. "The fact it is directed at first-time buyers is also the right thing to do, because it will stimulate supply for the housebuilders. The construction sector is one of the biggest drivers of employment in this country.
"House prices are still below where they were in 2006. The scheme is temporary, the Government cannot renew it and will even potentially stop it ahead of time if the situation goes in an accelerated way. It is absolutely premature to speak about a housing bubble."
It is not premature to speak about the launch of TSB. On Monday, it will be operating as a standalone bank, a step towards more competition for the high street and a step away from the mess of the financial crisis.
= TSB timeline =
The Rev Henry Duncan launches the first "trusted savings bank" in his parish of Ruthwell, near Dumfries
Parliamentary bill allows trustee savings banks to extend their range of services and investments. There are 84 separate banks, with invested capital of £1.3m
Members of the Trustee Savings Bank Association are allowed to launch current accounts
An amalgamated TSB is launched on the stock market
TSB merges with Lloyds, with the latter owning 70pc of the equity
TSB is spun out of Lloyds TSB with 4.5m customers and £25bn of deposits. Lloyds prepares for a float in 2014.