Ulster Bank's latest tracker bond offering is the Euro Bonus Bond, a three-year bond linked to the performance of the Euro Stoxx 50 Index.

It is a limited offer product, available until October 26th and the minimum investment is £5,000.

Annual bonuses earned by the bond are locked in each year. The maximum bonus is 16 per cent each year.

The capital is fully guaranteed - irrespective of stock market performance over the period, the investor will be repaid their full initial capital.

Speaking at the introduction of the new three-year bond, Mr Brendan Barr of Ulster Bank predicted that more and more product providers would enter the guaranteed tracker market over the next few months.