According to an ICICI statement, the `AAA' rated bonds offer various options under five types of bonds, ie, Easy Instalment Bond, Encash Bond, Tax Saving Bond, Regular Income Bond and the Money Multiplier Bond (Deep Discount Bond).

A new instrument, Easy Instalment Bond has been introduced in the January 1999 issue. This bond provides an investor the facility to pay for the bond in four easy instalments of Rs 2,500 each, over a period of one year.

Normally, an investor has to pay the full amount at the time of investment in bonds, and therefore, investors having smaller savings at regular intervals are unable to invest. Through the Easy Instalment Bond, ICICI now provides such small savers with an avenue to investtheir savings as early as possible at higher yields offered by these bonds.

The Encash Bond offers the investor growing interest rate with an option to withdraw his money before maturity, at any of the specified ICICI locations. In the Tax Saving Bond, investors can save tax under Sec 88 and long term capital gains tax under Sec 54 EA (option III) of the Income Tax Act, 1961.

The ICICI bonds, says the statement, provides the investor another opportunity to save at market related interest rates and offers various redemption periods and options to choose from. The investor can opt for the monthly income option at attractive rates or lock in for 18 years with no intermediate coupon payments.

Encash Bond offers liquidity with returns whereas Tax Saving Bond can help the investor plan his taxes optimally.