High Street favourite John Lewis has unveiled a new savings bond for customers and staff in a bid to raise £50m and reduce its reliance on bank loans.

The UK’s largest department store chain by sales already offers shoppers some financial products such as credit cards and home insurance but this is the first direct opportunity to invest directly in the firm.

Available to 1.5m cardholders the bond carries a minimum investment of £1,000 and shares the “partnership” branding with its credit card.

It will offer punters a fixed interest rate of 4.5% in cash payable over five years with a maximum investment of £10,000.

John Lewis is widely predicted to shrug off the retail downturn in its 2010 results with an increase in profits to £350m, thanks to strong growth in the chains Waitrose and online divisions.

Charlie Mayfield, chairman of the John Lewis Partnership, said: "The Partnership Bond issue is in keeping with HM Treasury's desire to develop non-bank lending channels to help improve macroeconomic resilience in the longer term.”