Besides, other instruments -- Regular Income Bond, Growing Interest Bond and Infrastructure (Tax Saving) Bond will cater to the varying needs of other investors.

In a news conference here today, the Chairman and Managing Director of IDBI, G P Gupta said `IDBI Retirement Bond' is an ideal tax planning avenue as the maturity of the bond varies from 9 years to 14 years depending upon wait period chosen.

The investor can receive annuity after the wait period for the remaining period of maturity.

The IDBI regular income bond offers a return of 14 per cent annualised for a period of 7 years in which an investor has the option to receive interest payments eitherquarterly, half-yearly or annually. The bond offers the investor an early encashment facility at the end of the fifth year, in which case the annualised return will be about 13.75 per cent per annum.

This instrument will give benefit to investors who look for regular and stable income.

The IDBI Growing Interest Bond has a built in step up in the interest rates which rises every year from 11 per cent in the first year to 20 per cent in the seventh year. The investor is rewarded for his loyalty with higher returns in each subsequent year. In case the original allottee needs funds urgently, he can encash the bond any time after the first year from deemed date of allotment.

The IDBI Infrastructure (Tax Saving) Bond offers three and seven years maturity options. Investment in the 3-year maturity bond can be made to avail tax benefit up to Rs 70,000 under Income Tax Act, or alternately to derive Capital Gains benefit.