One of the more pressing questions for savers this new year is whether interest rates will drop sooner rather than later.

If economists and analysts and they have been known to get it wrong in the past are to be believed, it would seem that a drop in rates is inevitable in the lead-up to next year's European Monetary Union. But by how much and how soon?

The life assurer, Friends Provident and Anglo Irish Bank have recognised this concern and have devised a new regular savings product called the Creative Value Investment Plan.

The plan is two pronged: you can place part of your monthly savings into an Anglo Irish Creative Savings Account, which currently offers a guaranteed 5 per cent annual interest rate for the first 12 months and the other portion (in whatever proportion you wish) into a Friends Provident

low-cost Value Investment Plan, which has a minimum 10-year savings period and either a unit-linked or unitised with-profits option.

If interest rates fall, the Creative Deposit part of your funds remains steady at 5 per cent (the rate Anglo Irish have set for the first 12 months, after which it is reviewed); if they go up, you enjoy the higher rate.

There is nothing to stop someone opening up two separate policy/deposits of course to fulfil the same function as this new product; except that no bank is paying a 5 per cent interest rate on monthly deposits as low as £80, the required minimum for this combined product.

You do need to give 30 days notice to make a withdrawal, but this is a small sacrifice for such a good rate of return. Both companies have strong track records for investment and deposit returns.

Anglo Irish, in particular, has been a forerunner in the "Creative" account market for several years, the most attractive feature of them being that depositor's funds are immune to interest rate falls over fixed periods.