Savings alert: Britons can secure 7.5 per cent bond paying double Bank of England base rate

Capital raised from the bond will be directed towards lending to small and medium-sized enterprises across Britain, supporting debt and credit facilities in the property, infrastructure and finance sectors.

The offered return also exceeds the present inflation rate of 3 per cent by more than double, though analysts anticipate inflation may climb further should Middle Eastern tensions persist.

Market uncertainty has led traders to abandon hopes of two interest rate reductions this year.

Individual investors can purchase the bond with a minimum subscription of £1,000, with additional investments accepted in £100 increments.

The deadline for private investors to subscribe is midday on 9 March.

Unlike many retail bonds that distribute interest payments annually, this product will only pay out when the term concludes after three years.

However, interest compounds each year throughout the bond's life, meaning an initial £1,000 investment should yield a total payout of £1,242.30 upon maturity.

From 16 March, the bond will trade publicly on the London Stock Exchange, allowing holders to buy and sell their positions much like shares.

The offering will be accessible through several major UK investment platforms, including AJ Bell, Interactive Investor and Hargreaves Lansdown, with Allia C&C overseeing the bond sale.

Crucially, the bond falls outside the protection of the Financial Services Compensation Scheme, which typically reimburses savers up to £120,000 when financial providers collapse.

Should Secured Fixed Income become insolvent, investors would have no guarantee of recovering their capital, unlike funds held in traditional savings accounts.

The prospectus identifies several principal risks, including the potential insolvency of either Secured Fixed Income or Triple Point, adverse economic or political developments disproportionately affecting the UK, and the possibility that managers may struggle to identify sufficient lending opportunities.

Retail bonds have previously delivered painful losses for investors.

When Wasps rugby club entered administration in 2022, bondholders recovered merely £7.4million from a total investment of £35.2million.

Such instruments are also deemed considerably riskier than government gilts, given the higher probability of corporate default compared to sovereign debt.

Fixed income specialist Mark Taber has cautioned that the bond represents a "hugely risky" proposition for ordinary savers.

"Secured Fixed Income's business seems to be lending to other small companies. That in itself is quite a risky area to be operating in, especially in the current economic climate," he said.

"Everything is back-ended and in the meantime you've got no checks as to how things are going, and you're getting no payment from it at all. Anyone who is not a professional investor should be getting some serious advice on this."

Toby Furnivall, managing director at Triple Point Private Credit, defended the offering, stating: "Our defensively constructed portfolio and strong governance are designed to provide investors with stable and predictable fixed income."