The Bond has a minimum operating balance of £10,000 per account and withdrawals are not permitted during the term.

The Bond is available to open in branch and by post from Wednesday 20th November.

Andrew Hagger of Moneycomms.co.uk said: “Understandably many people will feel that 10 years is too long not to have access to their capital, but for those with the sole intention of getting the best monthly income they can from their nest egg, the 4% rate will look very tempting.”

This is the first time a 4% fixed rate savings deal (excluding peer to peer) has been available since November 2012.

Hagger added: “Even the best buy 7 year fix currently offers just 3.52% (Secure Trust Bank).

“It’s difficult trying to second guess whether this will turn out to be a wise savings choice, particularly as experts and economists have repeatedly got it wrong when predicting potential base rate rises over the last three or four years.

“I’m sure many people looked at the 10 year fixed rate savings bond from Birmingham Midshires in the summer of 2008 and thought it was too much of a risk too.

“But in hindsight the rate of 6% on offer at the time would have turned out to have been a very shrewd move.”