No doubt one of Educational Building Society's new Invest Direct brochures has fallen into your lap in the last few weeks when you opened a newspaper or magazine. The product is particularly attractive to those not needing access to their funds for 12 months.

For the first time in Ireland, a direct investment account is being offered to consumers. All Invest Direct transactions are operated by post, thereby reducing administration fees and allowing EBS to offer higher returns to customers. For consumers, this means a trip to an EBS branch is not necessary.

Investors may place between £3,000 and £500,000 (€3,809-€634,869) in the account to receive the same return as in an EBS demand account plus a 3 per cent bonus if the account is transaction-free over the 12-month period. This means possible returns of between 3.2 and 4.25 per cent a year. If transactions occur, the 3 per cent bonus is eliminated meaning that only a standard demand deposit rate of between 0.2 and 1.25 is possible. The minimum withdrawal, which also occurs by post, is £1,000. EBS promises a 24-hour response rate for withdrawals.

The product clearly targets wealthy investors as only those depositing £100,000 and over make the highest return of 1.25 per cent plus the 3 per cent bonus, where applicable. Those investing between £3,000 and £19,999 may make 0.2 per cent plus the 3 per cent bonus; for £20,000 to £29,999 a rate of 0.5 per cent may be available while accounts with between £30,000 to £99,999 may obtain 0.75 per cent. These rates were determined based on the variable demand rate on May 1st, 1999, and may be subject to change.

To open an account, existing customers fill in an application form and post it with a crossed cheque or draft to EBS. Non-customers need to prove their address and identity and should therefore enclose a recent original utility bill and a copy of a passport or driving licence.

EBS will send written confirmation of the lodgement and, if requested, will also confirm by phone. It will also send an EBS Invest Direct certificate specifying your details. Once lodged, information on the account is available by telephone. Otherwise, contact may be made with EBS through e-mail at invest.direct@ebs.ie

For more information, call 1850 654326, or visit their website at http://www.ebs.ie