Bristol & West is aiming an investment bond at savers wanting a regular income.
It says the Escalator bond is ideal for investors looking to maximise income in retirement.
The three-year bond pays a higher interest rate each year and is available in two forms.
The monthly version has a rate starting at 3.64 per cent in year one, rising to 4.02 per cent in year two and 4.89 per cent in year three. Minimum investment for this version is £5,000.
The second version pays out a higher rate annually, starting at 3.7 per cent in the first year, 4.1 per cent in year two and 5 per cent in year three.
Minimum investment is £1,000 through the bank's branch network or £5,000 if it is set up via the post or phone.
Head of product market-ing David Harris says: “Escalator bonds can offer a lifeline to hard-pressed savers by increasing the level of income they receive each year and helping them keep ahead of inflation.”