Bank of Valletta has launched a new five-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 per cent in the first year, increasing up to four per cent in the fifth and final year. Interest on this account will be paid every six months.

The minimum amount €1,000. Interest is payable semi-annually.

“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 and investments. “We have enhanced the features of the standard term deposit account to mitigate any future increases in interest rates.”

This offer is available until March 13 but may close earlier at the bank’s discretion.

Information is available from www.bov.com, by calling the Customer Service Centre on 2131 2020 or visiting any branch.