Bank of Valletta has just launched a new 5-year Euro Term Deposit Account offering an interest rate that increases each year over the term of the account.

Account holders taking out this deposit will benefit from an initial interest rate of 2.25% in the first year, increasing up to 4.00% in the fifth and final year. Interest on this account will be paid every six months, the bank said.

"In the current scenario where rates of interest on deposit accounts are historically low, this new term deposit account addresses customers' need for a higher return on their savings while offering regular income", said Romeo Cutajar, Chief Officer Financial Markets & Investments at Bank of Valletta. "We have enhanced the features of the standard term deposit account to mitigate any future increases in interest rates. This account complements the Bank's comprehensive range of deposit products and reinforces our commitment in providing greater value to our loyal customers".

This offer is available   from the 13th February 2012 up to the 13th March 2012 and may close earlier at the bank's discretion.