Bristol & West claims that savers can access a 'tax haven' in the High Street by investing in their new 'Balanced Pep'.
The product allows investors to place up to half of their investment in an 8-month bond paying 8.5 per cent gross a year while the other half is invested tax free in a Pep. The bond will mature on 1 May next year.
The lender says the product is an ideal way for customers to take advantage of tax benefits and at the same time boost the amount they have available to invest in an ISA.
Group product manager Simon Pratt says: "The balanced Pep offers a unique mix of a guaranteed high return in the short term and excellent growth potential in the medium to long term."