Cheltenham & Gloucester is launching a two-year fixed rate bond paying 4 per cent per annum gross until April 2005.
The interest is paid on any investment over £500. Any additions can be made as long as the bond is open to new investors.
For investors needing to access their investment urgently there is a withdrawal facility, subject to a charge equivalent to 120 days' gross interest on the amount taken out.
Sales director Nick Hale says: “The bond provides excellent value for those investors looking for a guaranteed return on their savings.”