Liberty Asset Management Group has launched Harvester 2, a three-year bond it claims provides a real alternative to deposit accounts. This fixed-term product offers 100 per cent capital security from Anglo Irish Bank.

Every quarter gains may be declared and locked in, with profits paid out at the end of the year. At the beginning of each quarter, the value of the Euro Stoxx 50 index is taken.

If the index does not rise by more than 10 per cent or fall by more than 7 per cent for the quarter then a return of 2.5 per cent is declared for the period. This offers up to 10 per cent per annum.

If the index does not stay within the parameter, then no return is paid for that quarter and the next quarter starts at a lower level. Once a profit is declared it cannot be taken away and is paid to the investor at the end of each year.