The bond, which is available to both new and existing customers who hold a Cater Allen Sterling Private Bank Account, requires a minimum deposit of £100,000 (around $170,000), with £10 million being the maximum.

“This account offers excellent value for savers looking to ride out the period of low interest rates. Savers looking for a good return over the short term, and who don’t want their investments sitting in an account paying base rate levels of interest or worse, should explore the option of moving into a short term savings bond,” said Sally Ann Watts of Cater Allen Private Bank.

In the current near-zero rate interest environment – conditions that look likely to persist for some time – savers who want to keep part of their savings in cash may be finding it difficult to find decent returns, at least in the relatively short term. Several wealth managers have responded with the launch of fixed rate savings products, such as Barclays Wealth, which launched a 3 per cent deposit product with a 12-month term in March.