In a bid to increase its funding through stable deposits, Westpac has devised a new retail deposit product that mimics an annuity.Investors will be able to buy Westpac Annuity Deposits with a choice of income payment schedules (monthly, quarterly or annually), a choice of full, half or zero residual payout at maturity and with terms of up to 15 years. The can also choose an inflation-linked option.Strictly speaking, annuities can only be issued by life insurance companies. Westpac Annuity Deposits will not be eligible for concessional tax treatment if they are purchased as a retirement income option with funds from a public offer or industry superannuation fund.However, they will work fine as an asset in a self-managed fund and they can be bought with non-super money.Westpac's head of capital market solutions, David Van Ryn, said one of the consumer benefits of offering a deposit product with the features of an annuity was that it was covered by the Financial Claims Scheme. Amounts of up to $250,000 are guaranteed.Van Ryn said: "What we have observed in the annuity market is that there is some reluctance to invest long term. Some of that reluctance is due to concerns about the longevity of the provider."The Financial Claims Scheme gives this product a bedrock."Westpac has taken the lead among the Big Four in developing new deposit products to meet the stable funding requirements of Basel III. Earlier this year, it launched a notice account (one of only four in the market).