The pressure on deposit interest rates is worrying the financial institutions as much as their clients since every time rates fall (or threaten to as EMU approaches), more money is withdrawn from deposit accounts and invested elsewhere.

No wonder then, that the EBS building society has introduced a low DIRT Personal Equity Plan (PEP) which is aimed at long-term savers interested in enhancing capital growth. The funds in this PEP are invested in a managed fund of mainly Irish and international stocks and shares. What makes it attractive (especially to a regular saver) is that there are no entry or exit charges, so 100 per cent of the money is invested from day one. Another plus is that the annual management charge is 1.6 per cent per annum, quite low given that there are no other charges.

The EBS says it has been able to keep charges low because it does not deal with intermediaries and therefore does not pay out any commissions. It is also conscious of the changing position of the markets: "As a mutual, our commitment is to our members," says Mr Billy Russell. "We take a portfolio approach with investors and would not suggest anyone put all their money in this one fund."

This PEP is aimed at both regular savers and people with lump sums; in the former case you need to save at least £50 a month and in the latter, at least £5,000. With no entry charges whatsoever, EBS believes that this product will be very attractive for parents of young children who want to start putting away money for their education.

There are no capital guarantees attached to this product and its performance is very much at the mercy of the underlying stocks and shares. The huge gains on the world's big stock markets (with the glaring exception of Japan) over the last few years are likely to be coming to an end, say many commentators, and anyone who buys into a fund like this has to accept that returns are likely to be a lot lower than those achieved in the past. Stock markets are cyclical, and the cycle may soon be turning.