Santander has outlined plans to "turn the savings market on its head", by launching a new savings bond which pays customers' interest up front.
The Upfront Interest Bond, which pays three years interest in advance, claims to be the first savings bond of its kind in the UK.
The bond will see customers receive £1,000 net interest up front for every £12,000 they save.
Customers must deposit at least £10,000 for a three-year term for the bond, which offers a fixed rate of 3.36% gross AER.
Matt Hall, head of savings at Santander said: "We've approached our innovative new savings bond from a completely fresh angle."
Interest is paid into a Santander current account within six weeks of the account opening. Those who open an account before November 20 will receive the interest in time for Christmas, Santander said.
Andrew Hagger of the Moneynet website said: "The option to earn three years' worth of interest up front, even though the rate is less than market leading, will no doubt appeal to those savers who rely on their interest income to help with day-to-day living costs.
"As well as a means of increasing its share of the current account market, with the minimum savings deposit requirement of £10,000 it could bring in a significant amount of new credit balances too."
The term of the bond for those opening an account up to November 20 starts on December 1 and matures on December 1 2014. Interest is not earned before the term starts and no withdrawals can be made during the term.
Santander's other recent initiatives include a £300 cash back incentive to people who switch their current account.
© 2011 Press Association