The Irish Permanent has launched a deposit account, The Step-Up Bond, which will allow investors to earn from 4 to 9 per cent gross over six years. This equates to a compound annual rate of 5.64 per cent.

The bond allows investors access to their funds at any stage and the interest earned rises in annual increments of 1 percentage point from 4 per cent in the first year to 9 per cent in the sixth. According to Ms Claire Byrne, group product manager, there has been a renewal of interest in the deposit area, driven mainly by the recent rise in interest rates.

"This new bond reflects a growing demand from investors who want a risk-free investment and instant access to their funds, while at the same time earning a competitive interest rate."

The minimum deposit allowed is £3,000 and the maximum is £250,000.